Author: Vishal Verma Added: August 22, 2008
Collection companies and creditors will put all their efforts to collect the debt from the clients of debt settlement program. Debt settlement happens when the clients stop paying their creditors directly. Most debt settlement companies suggest their clients to cease communication with creditors. However, collection companies and creditors keep calling and "harassing" debt settlement clients and often tell them how "bad" a debt settlement program is in order to keep collecting debts, and creditors usually don't stop calling until they are paid, getting payments, or forced to stop calling by some legal mechanism. Let us understand FDCPA (Fair Debt Practices Collection Act), before we proceed further. The Fair Debt Collection Practices Act is an Act which creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act. Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy. FDCPA has certain guidelines for collections companies. The collection companies are not supposed to call clients too late or too early, they are not supposed to threaten or abuse clients, they cannot discuss personal debt with relatives or neighbors, etc. Clients also have an option to tell creditors or collection companies to not call them at work or call their cell phone as these could cause unjust harm to client's finances. Clients can also request in writing not receiving any calls at all, using a "cease and desist" letter. There are certain untouched areas of FDCPA: 1. FDCPA is only applicable to collection agencies and some debts are held for long periods of time by original creditors. 2. The collection companies at times use various techniques to do away with FDCPA guidelines. To name some, ignoring it altogether! At times, collectors ignore cease and desist letters and don't return phone calls. Until and unless the client has adequate means and resources to hire an attorney, keep a log of all calls, understand FDCPA guidelines and monitor all violation, the collectors might continue violating FDCPA guidelines. A new service provided by DAAN group utilizing a new technology solves the problems described here. DAAN facilitates all collection calls to be routed to a law firm which maintains a log of all collection calls and FDCPA violations and then forwards the call to the concerned debt settlement company. The 2 ounce DAAN unit can be easily installed into any phone line at your home, which is the most common source of collection calls. With the use of DAAN technology, over some time the collectors realize that settlement might be the best option for them. There are few debt settlement companies that provide DAAN services to their clients. This helps the clients manage collection calls and live a peaceful life. Always make sure your debt settlement company offers you protection from collection calls.
--- Debt Elimination program for consumers overwhelmed with credit card debt and other unsecured debt. We provide DAAN services to all our clients
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