Laws in Credit Repair
There are certain laws issued for people that have bad credit
and to know these laws is important to protect all those
involved in your life. The Federal Legislation and several other
agencies including the Fair Credit Reporting Act (FCRA) protect
you from collection agencies and creditors.
If you have bad credit you really want to read this article
especially if you are being harassed by creditors or else
threatened. First, we are going to look at what steps debtors
can take to protect their status.
Debtors have the right to ask collection agencies or any source
hassling them for debt collection to stop hassling them. You
must contact the collection agencies immediately and request
that they stop communication with your completely.
It is important to word your letter wisely avoiding giving them
ammunition against you. You can do this if your collection
agency has claimed a lawsuit against you, or if the date has
ended, where the creditors can no longer contact you.
If the collection agency has written several letters or made
several phone calls threatening you with a lawsuit, you can
write an informal letter asking the agencies to stop nagging you.
If you have a current debt, it is wise to negotiate with the
creditors, since some may reduce your balance or even dropped
the debt completely. If the debt is older than seven years, it
is important that you DO NOT communicate with a collection
agency regarding the bill.
At the seven-year period, the account should have been removed
from your credit report. If it has not these people are in
violation. There are several reasons why creditors will
disregard lawsuits.
Some of those reasons include reductions in their chances of
winning the suit. If your debt is old then collectors avoid
paying high attorney fees to collect the balance.
Therefore, knowing is glowing when you have bad credit. If you
owe a debt, you have the legal right to protect your self
against creditors. The best solution is stop ignoring the
problem and finding a solution to repair your credit.
Problems do not go away, rather they add up more problems.
Credit repair is a deduction so you do not want to add on more
than you can take.
Collection agencies under the law cannot correspond with you by
sending mail to your address with symbols or labels. Collection
agencies cannot call your mom and dad, or any family member
regarding your debt.
The collection agencies are obligated by law to cease
communication if you have been subpoenaed to court. Collection
agencies are under law to avoid calling debtors after 9pm or
before 8am. (Some laws state that the collection agencies cannot
call after 10pm and before 5am.)
If you have an attorney and the collection agencies know this
and calls anyway, immediately file a complaint to the proper
agencies regarding the action. It is important to document all
information when you are in debt. This can protect you when the
moment arises.
If you have a job and a collection agency calls your work
environment he or she is in violation of the law. (Note: If your
employer allows calls, the law may not be effective)
Collection agencies are prohibited from impersonating law
enforcement or government officials in an effort to collect a
debt. At no time is a collection agency allowed to make
available to the public information regarding your debts.
Collection agencies are prohibited from sending letters, making
phones calls, or acting out any form of communication that
insinuates false impersonation. It is also against the law for
collection agencies to repeatedly call your home requesting you
or threatening you to pay the debt.
If a collection agency phones your home, they must comply by the
law and identify their name and the companies name within one
minute of the phone conversation.
Finally, collection agencies are prohibited to list debtors on
the 'deadbeat' list. Many laws and regulations apply to both
collection agencies and debtors. Therefore, when you know the
law you have strength to protect your self and a possible
solution to avoid the law.
If your credit is bad, the first step to a resolve is paying
your dues and knowing the laws.