Debt Settlement

Debts Covered under Fair Debt Collection Practices Act

When you are seeking debt relief, you are encouraged to seek someone who has professional experience in debt problems and understands the Fair Debt Collection Practices Act. This act provides very specific protection to the consumer and a knowledgeable debt specialist can make sure that you receive that protection.

According to the Fair Debt Collection Practices Act, a consumer debt is any debt that arises out of a transaction by a consumer to secure goods, services, insurance or property through the use of a payment plan. This, while very general, simply states that all purchases that are made by credit, including doctor visits where you pay later, are covered under the act and extend protection to the consumer.

Many bill collectors falsely represent this information stating that not all debts are covered under the act and that they, in fact, do not have to comply with the laws. As a private consumer you should be aware that this is absolutely false. All private held debt, secured or unsecured, that was placed on a payment plan is covered under this Act. This also relates to interest and non-interest bearing accounts. Once an agreement has been made between two parties to exchange a good or service for future payments the debt is covered.

A debt relief counselor will explain to you that once you have secured their services, in accordance with the act, creditors must stop the harassing phone calls and letters. They will also inform you that as your representative they can negotiate a debt solution program with these same creditors, ending all your debt problems.

Bill collectors can be very nasty to deal with. Many times your reluctance to repay a debt simply may stem from the poor treatment you have received from the collector. While these abusive practices still happen, despite the Fair Debt Collection Practices Act, you can find debt relief with a debt solutions company. You can take back control of your finances. You do not have to remain hostage to bill collectors and harassment. It is simply a choice to find the help you need with a debt counselor and take advantage of that help.

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