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It’s also important to know your rights under the relevant laws, such as the FairDebtCollection Practices Act (FDCPA) in the United States. Consulting with a financial advisor, creditcounselor, or attorney can also be helpful in navigating the complexities of dealing with debtcollection agencies.
Fear and Avoidance : Some debtors might react with fear, leading to avoidance tactics such as not answering the phone, which can potentially exacerbate the issue if it delays the resolution of the debt.
FDCPA ( FairDebtCollection Practices Act). The FairDebtCollection Practices Act (FDCPA) is a federal law that restricts the behavior of collection agencies when they are attempting to collect money from individuals. CreditCounselor.
If you know your rights and financial situation, it’s less likely that you may be duped by a similar scheme, according to Bruce McClary, senior vice president of membership and communications at the National Foundation for Credit Counseling. Getting to know the FairDebtCollection Practices Act is a good place to start, he said.
Here are strategic steps that debtors can take when dealing with debt collectors: Verify the Debt : Always request a written validation notice. This notice should include the amount of debt, the creditor’s name, and your rights under the FairDebtCollection Practices Act.
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