Saturday, July 21, 2012

Anomalous behavior of the debt collection agencies

Violation of norms set by Fair Debt Collection Practices Act: The FDCPA or the Fair Debt Collection Practices Act envisages that a debtor should not be harassed while debt collection. The FDCPA was framed to safeguard the rights of the consumers (debtors). There are many debt collection agencies or firms operating in different regions. These firms are entrusted with the responsibility of collecting debts from debtors who are defaulters in loan repayments.

Earning negative accolades:

Allied Interstate is one such debt collecting agency who has become popular for wrong reasons. Reports suggest that this agency has harassed many a debtors and has earned negative publicity in the process.

Will they really stop

Reports also suggest that there have been several instances when the company was sued for inflicting mental injuries to the debtors by way of such harassment. This may bring some amount of relief to the victims (of harassment), nevertheless, its effectiveness is difficult to fathom. Surprisingly, there were few debtors who were harried even though they did not owe a single penny to the creditors.

In fact, experts are of the opinion that the Federal Trades Commission has registered the maximum number of complaints as compared to any other industrial sector.

The FDCPA demands.

The debt collectors are required to inform about the norms of debt validation. They also explain that the debtor is not required to shell out the debt amount unless, it is so proved.

Given below is a list of some of the ways in, which debtors were treated while debt collection.

Harassing activities adopted by the representatives of the debt collection agency- Allied Interstate:

Use of abusive languages while talking to debtors

Contacting acquaintances (family members, friends and relatives) of the debtors and threatening them.

The debt collectors stressed on debt settlement without the need for any documentation related to the same.

There have been instances when they (officials) belonging to Allied Interstate called up wrong people who actually had no debt accounts at all.

The officials at Allied Interstate usually have a tendency to sneak into the credit reports belonging to the debtors irrespective of the fact that whether they were granted permission or not.

Often they may leave numbers, which may not exist at all.

Handling misappropriations and malpractices of Allied Interstate: The above activities would get a worthy reply provided debtors adopt the following strategies.

The first and foremost thing a debtor should do is being well (if not thoroughly) acquainted with the laws governing debt settlements in their state.

The debt collector should be aware that the debtor has sufficient knowledge about the proceedings of a debt settlement lest he may fool the debtor.

If a debtor is opting for debt reduction, the same has to be taken in written from the officials of the Allied Interstate. In such instances, verbal assurance is of no use. If required, the document may be produced for future reference. By doing so, if the officials of Allied Interstate deny any commitment, the document would serve as a testimony.

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