Laws in Credit Repair
There are certain laws issued for people that have bad credit and to know these
laws is determining to protect all those involved in your life. The Federal
Legislation and multiple 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 tormented
by creditors or else threatened. First, we are going to look at what steps
borrowers 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 determining 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 multiple letters or made multiple phone calls threatening you with a
lawsuit, you can write an informal letter asking the agencies to stop nagging
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 determining that you DON'T 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 multiple 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.
best solution is stop ignoring the problem and finding a solution to repair your
credit. Problems don't go away, rather they add up more problems. Credit repair
is a deduction so you don't want to add on more than you can take.
Collection agencies under the law can't correspond with you by sending mail to
your address with symbols or labels. Collection agencies can't 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 borrowers after 9pm or before
8am. (Some laws state that the collection agencies can't call after 10pm and
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 determining 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 permits 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. Lastly, collection agencies
are prohibited to list borrowers on the "deadbeat' list. Many laws and regulations
apply to both collection agencies and borrowers.
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.
Information is this email is for information purposes only. Always contact your
lawyer if you need legal advice.