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Instead, I suggest you do what you can to educate yourself about your options. FDCPA ( Fair Debt Collection Practices Act). The Fair Debt Collection Practices Act (FDCPA) is a federal law that restricts the behavior of collectionagencies when they are attempting to collect money from individuals.
Credit Counseling Immediate credit impact: None expected Long-term credit impact : None expected A creditcounselor is a professional adviser who helps you manage and repay your debt. Counselors may offer free or low-cost consultations and educational materials.
Understanding the Debt Collection Process The debt collection process typically initiates once a creditor concludes an account is non-performing, meaning the debtor has missed payments for several months. Legal Action : As a last resort, the collectionagency may recommend that the creditor take legal action to recover the funds owed.
Creditcounselors help create budgets, offer free educational workshops, and develop plans to repay debts. One example of a credit counseling agency is Consolidated Credit Solutions , a non-profit organization that provides financial counseling and debt relief services. damage to your credit score.
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