A set of laws at both the federal and state levels is present that offers consumer protection in US. Some of the federal laws are the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, and so on. The state laws vary from one to another but the aim remains the same.
There are certain rights that you have as a consumer. It is better to know the details of these to ensure that you do not fall victim to any sort of fraud. But who to approach for help? Only a legal expert would be able to answer your questions and clarify your doubts. Only a competent attorney specializing in consumer protection laws would be able to help you understand your rights and privileges.
Suppose you have bought a product or availed a service. But later you realize that it was not of the standard of your expectation. Or imagine a situation where you have taken a loan and the lender is using wrong means for recollecting it. As a consumer you can file a lawsuit against these entities, i.e. the manufacturer or dealer of the product or the provider of the service or the lender.
But this isn’t always an easy task. You need expert help to handle the situation. The first thing to do is find a suitable consumer protection attorney. Base your choice on factors like his/her qualification, experience, license, success rate, and competence in the field. Discuss the details of your case and seek answers to your queries.
These are the things you need to ask the Consumer Protection Attorney:
• What is the estimated value of the case?
• What sort of proof is required?
• Do you need witnesses?
• How to approach the case?
• How much would it cost?
You need to clarify the details of the attorney’s charges as well. How would he/she bill you? Would it be on a per hour basis? Or would it be on contingency basis? If the terms and conditions suit you, go ahead and form a contract, also known as the retainer agreement, with the attorney and hire his/her services for your case. This agreement outlines what services the attorney is to provide and how he/she would be paid.
The consumer protection attorney would be able to file a complaint against the company or business, and help you get the summons. Once the case reaches a trial, he/she would work on the proof available, present the case from your perspective and highlight the points that are of relevance. He/she would also examine any proof or witness that the defendant presents at court.
In such circumstance, choosing the right attorney is of significance. It’s wise to opt for a consumer protection attorney who knows all about the laws applicable and helps you understand the situation, has good communication skills, and most importantly, one you feel comfortable working with.
03 FebConsumer Protection
26 JulNegotiating With Your Creditors
Many people turn to debt management companies and credit counseling services to get help lowering payments or interest rates with their creditors. There is another way you can do this which simply involves a do-it-yourself approach for negotiating with your creditors. If you are looking to settle your debt (pay less than you owe) or get lower interest or a lower monthly payment – why not take the initiative and attempt to negotiate for yourself? You can sometimes get just as good of a settlement when you do it yourself, and it won’t cost you any fees.
Here is what you should know about negotiating a settlement or lower monthly payment with your creditors:
Know What Your Financial Rights Are
In order to have the best possible chance of negotiating with your creditors, you should take some time to look at what your financial rights are. The Federal Trade Commission has established the Fair Debt Collection Practices Act (FDCPA) which applies to all debts of a personal, family and household nature for people in the United States.
Most of the rights under this act involve what debt collectors can and cannot do, including that they are prohibited from engaging in unfair, deceptive, or abusive practices when they attempt to collect debts.
Some of the guidelines under the FDCPA mean that debt collectors:
May not contact you before 8 a.m or after 9 p.m.
May not contact you at work if you’ve asked them not to or your employer disapproves.
May not harass, oppress, or abuse you verbally or otherwise
May not falsely imply that you have committed a crime, or otherwise lie to you to intimidate you into paying a debt.
Must identify themselves to you on the phone.
Must stop contacting you if you ask them to do so in writing.
Figure Out How Much You Owe and to Whom
Once you know what your rights are, you will want to gather an accurate list of creditors and how much you owe them. Get a credit report if you do not already have a recent one. Verify first that everything on your credit report is accurate (take steps to correct anything that is not accurate), and then start contacting your creditors one at a time to negotiate.
Negotiations
Creditors would rather settle your debt than go into litigation or lose all money through a bankruptcy. This puts you in a position of strength and you should use that to your benefit when looking to negotiate your credit. Creditors will probably lose money if the matter is taken to court, and they stand to lose much more if you file bankruptcy. For this reason, many are willing to settle the debts for less than what you owe – particularly if the debts you are attempting to negotiate are unsecured. Unsecured debt means the creditor has nothing they can take from you to sell and recoup their money.
Do Not Let Emotions Get in the Way
Don’t let emotions rule your actions when you negotiate. When decisions are made as a result of emotions, they are often poorly made decisions. If your call with the creditors are badgering your emotions, terminate the call and try again after you’ve had a chance to calm down again.
Stick to the Settlement
If you’ve arranged a settlement that you and the creditor agree with that fits into your budget, make sure you keep to the settlement arrangement. Be sure you get the details of the settlement in writing from the creditor to make sure that there are no problems later on and that everyone is on the same page.
If you are unable to negotiate a satisfactory settlement, you might try to get a lower interest credit card to complete a balance transfer, or try to find an outside agency to help you.
Elizabeth Williams, Editor-in-Chief for CreditCardFlyers.com
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31 JanNegotiation With Debt Collectors – Do it and Save Thousands
Did you know that when debts owed go into collections, they do not expect to be paid in full. Debts owed that go into collections can often be negotiated to a fraction of what was actually owed. In order to negotiate the best deal you must understand how the collection system works, the debt collectors mindset, know your rights and how to start off the negotiations.
Debt Collection System Explained
When debts go unpaid for several months that company normally negotiates with another company in order to get you to pay. This third party either purchases your debt for a fraction of what is actually owed, or they work for the creditor for a fee or a percentage of any money that they collect. The debt collector is in the sole business of collecting debts and they have many methods they use in oder to make individuals pay.
Debt Collectors Mindset
It is important to understand that it is the debt collectors job to make you pay. They get paid when you pay. Debt collectors deal with unpaid debts on a daily basis and they do not have the emotions that you may have about your debts. Debt collectors, from the nature of their business are most of the time aggressive and have no problem putting stress on you and pressuring you to pay.
Know Your Rights
When dealing with debt collectors you need to know your rights. Debt collectors normally will not tell you your rights and possibly will break the law when trying to recover debts. There are many rights you have, but a few of the most important ones are the following:
Fair Debt Collection Practices Act (FDCPA) – This is a federal law that requires debt collectors to treat you fairly. This law places limitations on the way they can collect. This act places limitations on when the collector can call, who they can contact, obscenities, amounts they are entitled to collect, suing in locations far from residence, threatening remarks, and many more. The following website gives great details on the FDCPA: Fair Debt Collection Practices Act Details. If you feel a collector has violated one of your rights, you should contact either an attorney or a credit company that can help with this.
Statue of Limitations – With all debts there is a time limit to how long creditors or collections agencies can sue in order to collect debts. Depending on what state you live in this time frame varies from 4 to 25 years. A creditor may be contacting you about a debt that is outside of these limitations and you may not be entitled to pay. This is important to find out before paying anything to a creditor because if the statue of limitations has expired and if you make even a tiny payment, this will restart the statue of limitations and you will now legally owe this debt. It is important to get detailed information about your debts owed with dates and amounts from the creditor.
Privacy – A debt collector is not suppose to tell anyone about the debts that you owe other than a co-signer or a spouse. They can call neighbors and employers, but only to obtain contact information and that is it. If they cross that line, you may be able to take legal action against them.
Harassment, False Statements, and Unfair Practices – This may be very common among debt collectors. They will almost say anything they can in order to make you pay. They are not allowed to make false statements or harass you in illegal ways. It is smart to keep records of what was said and if you believe something may be illegal, contact an attorney.
Debt Collection Negotiation
Once you have followed through on the debts and made sure they are all legitimate debts that you owe you can begin negotiations. The collector will of course demand full payment but in they know they will not actually receive this. They will negotiate as hard as they can and that is why you have to negotiate hard as well. A good starting place is offering about 20%-30% of the total amount owed. The easiest way to settle your debts is if you have some money and offer them a lump sum payment right away, still only for a fraction of what is actually owed. Be careful not to give in and agree to pay for anything you cannot afford. Most of the time, you will end up meeting in the middle. Before you are done negotiating it is important to try to get them to remove any negative items on your credit report that may be bringing your credit score down. This will help you save on future debts by allowing you to obtain a lower interest rate.
If you feel you cannot negotiate on your own there are professional companies out there that can help you. Most of the time these companies will give you a free consultation and let you know what they can do for you before you decide to use their service. What is good about these companies is that they won’t have the emotions you would have when trying to negotiate your own debts. Even after paying the fee, you will most likely still be better off than if you were to do it yourself.
Find more debt relief solutions by visiting http://www.endthisdebt.com a website that specializes in providing debt help advice as well connecting individuals with debt specialists based on their individual debt situation.
If you need help with your debt and would like to get a free debt consultation please fill out the form here. We also help with debt negotiations.
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