People in Tyler who find themselves in debt will have a lot to be concerned about. This problem could have arisen due to a loss of employment, unexpected bills and numerous other factors. With the amount of stress that accrues due to consumer debt, it can be exacerbated if the creditors and debt collectors begin an avid pursuit of payment and use a variety of unethical and even illegal tactics to harass the debtor. The Fair Debt Collection Practices Act is supposed to prevent this from happening, but it often still occurs. One aspect the FDCPA covers is communication in connection with debt collection.
Simply because a person in Tyler is having financial issues and might be behind in payments does not mean that creditors are allowed to use underhanded and abusive tactics in the pursuit of collection on debts. The debtor must understand that the person is protected by certain rights to avoid such harassment. Under the Fair Debt Collection Practice's Act, it is not within the creditor's rights to conduct certain behaviors when trying to recover payment.
Texans who are facing significant consumer debt often find themselves confronted with the reality of foreclosed homes. This can be a difficult time for those whose debts have grown so large that they are not able to meet their payment obligations. There can be many reasons for this -- a failed business, medical expenses, unexpected job loss and more. Regardless of how it happened, it is important that those who are dealing with this understand their rights can be protected under the law.
For people in Tyler, overwhelming debt and the fear of financial ruin is just a small part of the stress that accompanies debt problems. In addition to wondering what will happen, the constant harassment from creditors with phone calls, emails and letters regarding the overdue payments can be even more worrying. In recent years, steps have been taken to better protect consumers from these practices used by collection agencies. One way is through the Fair Debt Collection Act.
Many Texas residents may be aware that federal and state laws govern the practices that creditors and debt collectors can engage in if they want to recover from debt. One of those laws, the Fair Debt Collection Practices Act (FDCPA), which protects debtors, was discussed in an earlier blog post. However, in addition to protecting debtors, there are laws in the United States that allow creditors to seek what is rightfully theirs. Therefore, they are allowed to take certain actions to recover outstanding debt.
It is important for debtors and creditors to understand that there is a law called the Fair Debt Collection Practices Act, which governs debt collection practices. Under the FDCPA, there are some ground rules that debt collectors must follow. The act forbids debt collection companies from using unfair or deceptive practices to collect debts from debtors.
Texas debtors often default on their repayment plans due to financial duress. Collection agencies have the legal right to initiate collection cases in order to be paid monies owed. Debtors who are overwhelmed by their indebtedness may have the legal right to declare bankruptcy.
In a case where a debtor consistently fails to pay off debts, the creditor may be forced to initiate a lawsuit against the debtor. However, the creditor's rights will never be considered more important than the debtor's rights. Texas laws ensure that the debtor is protected and such debtors often benefit from consulting attorneys as well as financial experts to help them understand the various aspects of such default in the loan repayment.
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.
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.