Oftentimes, a bill ends up being unpaid. Perhaps you couldn’t afford it at the time but were willing to face a penalty that would ensue later. Or maybe a medical bill ended up getting lost in a sea of junk mail in your home. It’s often easy to forget or miss important mail when we get a lot more mail that we pay attention to.
No matter the reason for your debt going into debt collection Netherlands, it is necessary for you to understand the consequences and what you should do in order to avoid them. Because if you don’t, you may see yourself in court.
How does debt enter collections?
The process is rather long and deliberate. The process begins when a debt gets unpaid for a lengthy period of time. It usually starts 30 days or so after the date that it is due. The overdue payment is considered and reported as a delinquent. When this happens, you should expect to get notices in the mail and even phone calls for the intent of seeking your missed payment. Eventually, probably after 6 months or so, the creditor will give up on trying to get money from the debtor. But this doesn’t mean you are in the clear.
The creditor is expected to sell the debt to a collections agency. It may only get pocket change in return, but it is better than keeping an old debt and getting nothing out of it. If your debt manages to get sold, you will be getting notices from a different debt collection Netherlands agency. It’s the same debt from before, and you still owe a payment, but only the party that you need to give the payment to has changed.
How to handle your collections account.
Don’t make any reckless decisions when handling a debt collector, as you could create more problems or make your existing problems bigger than before.
First, you should find out all the facts. You have the privilege to receive debt verification letters and debt validation, so we suggest that you use them. Within the first 5 days of contact, you should have one from your debt collector already. Read it over for information about age, how much debt you owe and how old the debt is, and who is attempting to collect it. To corroborate information of the account, review your own financial records, including your credit history. Ask for a debt verification letter if you are in need of further information about the debt on your hands.
Understand your rights.
The federal Fair Debt Collection Practices Act (FDCPA) should lay down the guidelines for what your debt collector is and is not allowed to do when you owe debt to them. This act makes it so that you can feel at ease while attempting to pay your debt back. The collector cannot call you at unreasonable times of the day, threaten you, yell at you, or use foul language towards you. This way, you should not worry about what happen if your debt goes unpaid.
Find a good approach for debt repayment.
There are 2 common ways to take care of debt when it goes into collections. First, you can set up a plan to pay off the debt, and so that the collector can be held accountable, make a written agreement between both parties. If the debt does not belong to you, or if you have already paid it, you can dispute it. During this time, the collector should stop asking for the debt and investigate on it instead.