A Debt Collector is an individual or company that pursues a creditor’s debt. A Debt Collector is employed by creditors and collects debts for their business.
Debt collectors are hired to obtain payment from a debtor who cannot make his or her monthly payment. It is the duty of the Debt Collector to follow up on the debtor for payment and to communicate with the debtor regarding the status of the payment. The Debt Collector has many tools at his or her disposal to track down and obtain payment from a debtor. One of these tools is the mail.
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If you received a letter from a debt collector, you might want to investigate the letter
Some letters are legitimate, while others are not. Do not assume that the agency sends all of the mail you receive from a debt collector. Many debt collectors use fake names. You should check to see if the letter came from a legitimate debt collection agency.
Another tool, a debt collector can use is the mail. These letters contain important information for the debtor. They usually state if you have reached a certain amount of past due balances, the penalties for failure to repay the balance, and other information that will help the debtor. Some of these letters may contain a debt collectors legal notice which states in part that you owe money, that you have not paid the full balance and that the collector has sent legal notices.
If a debt collector sends you a legal notice, it is essential to call the agency and dispute the debt
Some letters may be legally binding, while others may not. A debtor may be able to challenge the legality of the debt with the court system. The courts do not always enforce the validity of debt collection letters, however.
The last tool a debt collector has been the power of the law. To collect on a debt collector has to follow the laws of the state where the debt is owed. Also, a debt collector may not threaten, intimidate, or falsely threaten a debtor with legal action. If a debt collector tries to use any of these methods to scare a debtor, that action is illegal.
How long can a debt be pursued?
Debt collectors have two ways to pursue a debtor for payment: through traditional legal means and private means. If a debt is not paid, the original creditor will likely file a lawsuit against the debtor. If the trial is unsuccessful, the original creditor can sell the debt collection rights to another collection agency. This allows the new collection agency to pursue the debt for the full amount owed.
Debt Collection can be used for a variety of reasons; debt collectors may use debt collection letters to obtain payments, threaten, intimidate or falsely threaten a debtor into paying a debt, or use the mail to contact a debtor. Any of these methods can be used against a debtor. If a collector continues to follow up after receiving a debt and the debtor still does not make a payment, the collector may pursue the debt through legal channels. If the collection agency is unsuccessful in recovering a debt, it may have to give the debtor another option; such as a lawsuit, a civil penalty, or a settlement agreement.
The Financial Conduct Authority (FCA)
This organisation was established in to protect consumers from unfair debt practices, especially those that affect their credit. The FCA can help debt collectors by enforcing their rights to collect a debt, protecting them from abusive practices, and providing them with consumer information and resources to help them protect their rights.
If a collector violates the rules, the FCA can investigate the collection agency. In most cases, the agency must pay a fine if it cannot prove it was wrong. In the investigation; the agency may also be forced to close down and cease collections activities. If it cannot show, it was wrong in continuing collections.
In order to stop collections, The Financial Conduct Authority has the right to sue the collection agency or company. It may also request that the collection agency return the monies paid by the debt collector in violation of the act.
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