Many Texas residents know that the Federal Trade Commission is entrusted with enforcing the Fair Debt Collection Practices Act, which protects debtors from being harassed by debt collectors and creditors. The act lays down clear rules and regulations pertaining to those practices that debt collectors and creditors cannot employ while recovering debt.
The fate of Dallas, Texas-based Energy Future Holdings, which filed for bankruptcy in April this year, has become uncertain once again. With two loans already approved by a bankruptcy court, the company was on the verge of finalizing a plan to restructure its debt and thus get closer to emerging out of bankruptcy. The approval of a third loan would have made this process a certainty. But opposition from some creditors, who felt the plan gave higher preference to other lenders, has forced the company to think of alternatives.
Money is required for almost everything, whether it's to host a birthday party or to make a child happy with a favorite toy. However in tough financial situations, paying for everything through cash may not be possible and, as a result, many people end up making purchases with their credit card. Even if it is not purchases, sometimes unexpected healthcare costs may also affect finances of the family.
Texans dread the thought of debts. However, sometimes due to medical or other financial emergency, the person may need additional finances, which may lead to an unplanned debt. People may try to make regular payments, but financial conditions may not allow them to repay the debt in whole. While people may be stressed about timely payments to the financial company, calls from the debt collector may cause more strain.
Life is often unpredictable. Any undesirable event, such as job loss or health problems, has the potential to complicate a person's life. Tyler, Texas, residents may be aware that when the economy is not healthy, the consequences may be unpleasant. Job loss can ultimately lead to an increase in consumer debt, which may be difficult to pay off. In that case, the debtor may have to face creditor harassment.
In Texas as elsewhere in the country, many people carry consumer debt. Most are able to pay it off over time, but sometimes unfortunate circumstances lead to debt that cannot be easily paid off. This often leads to harassment from debt-collection agencies.
The Consumer Financial Protection Bureau was only created in 2011, but it’s already making enormous strides. In fact, the agency is currently considering new rules meant to strengthen the Fair Debt Collection Practices Act, for FDCPA. This federal law was passed in 1977 to protect debtors from unfair debt-collection activities but, amazingly, this is the first time a specific regulator has been in charge of its interpretation.