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Wage garnishments are the ultimate threat posed by every debt collection scenario, but finding yourself on the wrong end of one doesn’t have to be a financial death sentence. Wage garnishments are put into place to recover unpaid taxes, outstanding child support, student loans, court judgments, or unpaid bills.
They play with your emotions, tapping into your existing fears and stigmas about debt collection. Agents can simply imply threats, and that’s often enough to prompt payment, such as threatening to call your employer and set up wage garnishment arrangements. This is why it’s so important to know your rights.
In fact, it is considered reasonable for debt collectors to attempt to reach a consumer by phone one time each week, unless the consumer has provided the collectionagent with a specific written request that they stop trying to contact them by phone. Garnish Your Wages (If They Obtain a Judgment).
In most cases, some qualifications and credentials will be required to distinguish that you are working with a reputable collectionagent. This allows commercial collectionagents more flexibility in collecting on your behalf, but it is always a fine line between pushing too hard and not pushing hard enough.
What are some other debt collection practices that can protect you from call baiting? Ensure your collectionagents take detailed notes on their calls, especially those who mention representation. Are you going to garnish my wages? Reminders/Updates - Keep up to date on new baiting tactics. How will my credit be affected?
2,906 complaints were filed against debt collection companies in 2014 regarding false or misleading statements that a collectionagent had made. An example of dishonest medical collection tactics is the placement of a debt collectionagent in the hospital emergency room without making it known that they are a collector.
Overall, tax refunds can significantly affect debt collection by giving customers and creditors more options on how they handle their outstanding balances. How Debt Collectors Use Tax Refund Information Debt collectors often turn to tax refunds as a way to recoup debts owed by individuals.
If the debtors have been contacted and the collectionagent determines that payment in full cannot be achieved, a payment arrangement may be arranged. This involves procuring a Judgment and garnishing bank accounts and receivables. Payment plans and settlement agreements.
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