First let’s get a brief review of Part 1 and then move into Part 2 of “Secrets About Debt Negotiating And Protecting Your Rights”.
If you are in financial trouble in the United States and other countries you have the right to debt negotiating. In other words you can bargain with your lenders to try and get better terms to pay off your debt.
You are going to need to be prepared when you start this process. The people you are going to be talking to are professionals and they know precisely what to say and how they can say it. Therefore it is imperative for you to know your rights also.
There are basically three ways to learn what your rights are.
1. Visit the FTC (Federal Trade Commission) website http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
2. Visit your states official web site and find your rights in your particular state. Normally you will find this in the State Attorney General part of the site.
3. Seek advice from a qualified debt attorney. And hire him to do the negotiations for you.
The third choice can get expensive very quickly. Here are some additional tips you can rely on if you want to do your own debt negotiating.
• Keep records
• You should keep a journal or at least a note pad of every time you have contact with a lender. Do it when they call you and you call them. You should note the following in your journal:
o Date and Time
o Name of collection agency
o First and Last name of who you talked to
o Notes on what was said
If by chance you and your lender reach a debt repayment plan, it is imperative to get it in writing. Do not make a payment until you have the agreement in writing. However, remember when you get it in writing it is a double edged sword. It can work for you and it can work against you.
There are two ways for you to do that. You can request the debt collector to mail you a letter confirming the agreement exactly the way it was discussed on the phone. Make sure that it is on their company letter head and signed by an officer of the company or someone else with legal authority to sign the letter.
Actually the best way to get it in writing is for you to draft a letter to the lender, laying out the terms as you understand them. Be sure and send this letter by certified mail, return receipt requested. This gives you the proof you need to show you have acted in good faith.
One thing you may not really understand is that the collection company and their representative can not rush you into making an agreement and payment. No matter what they say are how hard they “brow beat” you don’t make any payment until you have it in writing and signed by an official John Hancock.
If you will notice in the above paragraph we mention a debt collector using “brow beating” tactics to rush you. Listen and listen good folks! You are protected under the Federal Consumer Protection Act and more than likely your own state has a very similar protection for you from those tactics.
The following is just a few of the things a debt collector cannot do:
• No harassment
• Abuse you (verbally or in writing)
• No cussing or indecent language
• No phone calls on a consistent basis
• Cannot contact your employer (when you notify the collection company you employer is prejudiced against these calls)
• Plus many more (which are beyond the scope of this article)
Are you aware that if the collection agency infringes on your rights you have the legal right to report them to state and federal authorities. You can even sue them and collect damages in some cases.
You have the right to do debt negotiating in good faith. You should know what you can do and not do. Be prepared!
Oh yeah! Don’t forget about the tape recorder I told you about in Part 1of Secrets About Debt Negotiating And Protecting Your Rights.