Annoying creditor calls. Debt settlement helps.
May 30, 2009
One negative factor of debt settlement is numerous collection calls from collection companies who try their level best to collect the debt.
Debt settlement happens when the clients stop paying their creditors directly. Most debt settlement companies suggest their clients to cease communication with creditors. However, collection companies and creditors keep calling and “harassing” debt settlement clients and often tell them how “bad” a debt settlement program is in order to keep collecting debts, and creditors usually don’t stop calling until they are paid, getting payments, or forced to stop calling by some legal mechanism.
Before we proceed further, it is important to know about FDCPA (Fair Debt Practices Collection Act).
The Fair Debt Collection Practices Act is an Act which creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act. Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information’s accuracy.
FDCPA has certain guidelines for collections companies. The collection companies are not supposed to call clients too late or too early, they are not supposed to threaten or abuse clients, they cannot discuss personal debt with relatives or neighbors, etc. Clients also have an option to tell creditors or collection companies to not call them at work or call their cell phone as these could cause unjust harm to client’s finances. Clients can also request in writing not receiving any calls at all, using a “cease and desist” letter.
There are certain untouched areas of FDCPA:
1. FDCPA is only applicable to collection agencies and some debts are held for long periods of time by original creditors.
2. Collection agencies use a variety of techniques to not comply with the FDCPA. To name some, ignoring it altogether! Cease and desist letters are often ignored as well and the phone keeps on ringing. Unless the client has an ability to either record calls or hire an attorney or maintain a strict log of violations and calls, these violations will continue unabated.
A new service provided by DAAN group utilizing a new technology solves the problems described here. DAAN facilitates all collection calls to be routed to a law firm which maintains a log of all collection calls and FDCPA violations and then forwards the call to the concerned debt settlement company. The technology is easily installed into any home phone, the most problematic source of creditor phone calls. Over time, with correct usage of the DAAN technology, creditors typically find themselves no other outlet than to settle with the intermediary company.
There are few debt settlement companies that provide DAAN services to their clients. This helps the clients manage collection calls and live a peaceful life. Always make sure your debt settlement company offers you protection from collection calls.
The unsecured debt consolidation loan.
May 29, 2009
Now a days debts have become an integral part of your budget. There are certain expenses that you cannot bear within your own pockets. But sometimes, due to some reasons, you have to borrow funds from other sources without repaying the existing loans. It puts you in trouble as the lenders keep on digging your empty pockets. In this circumstance Unsecured Debt Consolidation Loan prove extremely useful.
Unsecured debt consolidation loans are indeed a great help for debtors. It implies that you shoot a number of unsecured loans by another unsecured loan. But more often than not, it involves no security against your money provision and serves your purpose without collateral. It tries to cut your cost with existing debt to a considerable level. The rate of interest you are offered always remains much lower to that of all your existing debt. With the financial process you reduce your debt burden by 50% to 60%.
Though loan providers charge comparatively and it is thus they try to incur a bit high rate of interest on unsecured Debt Consolidation Loan. Even now, you can find it competitive as so many lending players are rivaling to enlarge their business stake. As well as, you can find innumerable websites working for the same cause. After collating different information from various sites, you can compare their loan quotes. And that will help you to choose the best possible one to apt to your situation.
However for all that, a good amount of sum is released. The sanctioned amount usually depends on your repayment capacity and employment-ability. So, depending upon your income level and repaying capability you are granted a good sum. Despite the fact, a borrower of any class structure can get a sum anywhere from $1,000 to $25,000. Along with that, you are given a repayment period of 6 months to 10 years under unsecured debt consolidation loans.
For the unsecured debt consolidation loans, you can make the loan application to any debt consolidation agencies. These agencies help you with their best services of experts of the field. Usually, these experts project a plan to eliminate your outstanding dues with the lowest possible costs. As well as, commercial institutions help you renegotiate with your lenders on your behalf for a better deal.
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