How to Handle Collection Calls When in Debt Settlement Program

How to Handle Collection Calls When in Debt Settlement Program

One negative factor of debt settlement is numerous collection calls from collection companies who try their level best to collect the debt.

Debt settlement typically operates wherein the client stops making payments to his 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.

Let us understand FDCPA (Fair Debt Practices Collection Act), before we proceed further.

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.

FDCPA has certain uncovered areas:

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. Until and unless the client has adequate means and resources to hire an attorney, keep a log of all calls, understand FDCPA guidelines and monitor all violation, the collectors might continue violating FDCPA guidelines.

A new service provided by DAAN group utilizing a new technology solves the problems described here. The technology allows for calls to be immediately routed to a law firm which monitors FDCPA violations and forwards the calls to the correct 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.

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