Debt Collection LawsIs a Must to Follow For the Collectors
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Posted On :
Dec-28-2011
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Article Word Count :
440
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When an individual misses his consecutive payments, it is the debt collection agency that makes sure the borrowers would pay back on time. Debt collection practices, however, are required to be fair enough. Following the debt collection laws will ensure that the agents take fair steps to get the debt amount back.
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Applying for loans is a very common scenario. The applications of many individuals get approved and hence they receive the amount to fulfil their needs and desires. However, when it comes to paying back, the individuals start thinking of several ways in which they could avoid repayment. Of course, there are some people who are serious about paying the debt back, but because of their temporary financial crisis, they have to delay. Those who do not take repayment seriously, the lenders have to take some negative actions. To make sure that the borrowers pay back the amount on time, they hire debt collections agencies that operate keeping in mind several debt collection laws.
The lenders are into the business of lending and they are not into ding social service. Thus, the individuals whom they offer a particular amount as loan, they expect them to pay them back as soon as possible. There is an agreement that is signed by the borrowers and the lenders with the specific amount to be paid as instalments at regular intervals and the time till which the loan needs to be repaid. When the lenders see that an individual is casual about paying the debt back, they hire collections agencies that assure of working on the basis of the debt collection laws that have been formulated by the legal authorities.
The debt collection agencies, of course, work under certain norms, but they are responsible for convincing the customers to pay back the lent amount as soon as possible. As a result, the agents try to compel the borrowers repay the amount by hook or by crook. The way they are observed to behave with the individuals has led to the formulation of complex debt collection laws. The misbehaviour of thedebt collectors has many a tomes forced the borrowers to commit suicide. To safeguard the dignity of the borrowers, who delay the repayment because of genuine financial crisis, the debt collection laws have been formulated.
To limit the steps that the debt collectors take to convince the people pay back their loan amount, fair debt collection practices have been mentioned. The collection agents have always been found to harass the ones who missed their payments from time to time, which led them to make suicidal attempts. In addition, they used to call the individuals at odd timings, which disturbed them while conduction of emergency tasks. Thus, the lenders, in order to ensure safety for them try to select the debt collection agencies that specialise in taking strict steps to get back the amount butwithin the limitations specified in the debt collection laws.
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Article Source :
http://www.articleseen.com/Article_Debt Collection LawsIs a Must to Follow For the Collectors_125783.aspx
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Author Resource :
Safina Jones is a legal advisor who has good information on debt collection laws. For more information on debt collection practices, please visit http://www.consumerlawfirmcenter.com/
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Keywords :
debt collection practices, debt collection laws,
Category :
Business
:
Business
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