Have An Agency Collect Your Debt

Before discussing the full and final debt settlement pros and cons, you first have to understand what is involved and have a rough idea of what you are doing. Coming to a full and final settlement with creditors seems a good idea if you expect to get a good discount on what you owe them. Many creditors will accept a sum significantly below what you owe, and it might seem like a great way to save yourself money. However, try it alone and you are liable to find yourself losing out.

From the point of first contact with the Scottish Debt Collection Agency you should maintain a file which records the dates and times of phone conversations or messages the collector leaves you. Include details such as the name of the individual and summary of the conversation.

It is an unfortunate fact of life that bad debts must be allowed for in the working budget of every business. This is done by increasing the costs of goods or services and aiming to sell even more.

Who are these people? How do you know this is legit? Have you done business with them? How do you know it’s not a scam? How do you it’s not the result of identity theft? Ask them who they are and for contact information. And talk to them like you have no idea who they are or what they are talking about. They will try to get you to verify information. Do not give them any information and do not verify anything! And I mean ANYTHING! Remember, you have no idea who they are and they are calling about a debt you know longer owe. (See the “Do not acknowledge the debt!” section below.) Just get information from them, hang up, and then do some research first. They will try to use any information you give them against you. Warn other family members or roommates not to give them any information.

Even though it is a violation of the Fair Debt Collection Practices Act to file a lawsuit after the statute of limitations has run, the sleaziest companies file lawsuits anyway in the hopes that the consumer doesn’t respond to the lawsuit and the collection agency ends up getting a default judgment against the consumer. This will then turn the previously uncollectable debt into very collectable debt. It is also important to note that although the statute of limitations prevents debt scavengers from filing a lawsuit, they are still permitted to try and collect the debt. However, many of their tactics violate a law called the Fair Debt Collection Practices Act.

The image painted of these debt collectors is often over-exaggerated & inaccurate; Big burly men in black jackets, making physical threats in order to gain entry to your home. Barging past as you open the door. This picture is far from the truth. As with all industries, there are regulations to be adhered to. For the minority who do not follow these guidelines, the government is currently turning it’s attention to expose these law-breakers & revoke their licences.

Here are a few other reasons why. Bankruptcy stays on your credit profiles for 10 years; a settlement stays on your credit profile for 7 years. With bankruptcy you have to pay the filing fees, courts costs and attorney’s fees and you have to pay for and take the pre-filing debtor education course. You literally have to apply to file and most people are forced into a stringent Chapter 13 repayment plan. If you fall out of the plan for whatever reason, your case is dismissed and you are back to square one! Meaning, all of the money you paid to file bankruptcy is lost! This is why Credit Card Debt settlement is a much better path to take than bankruptcy.

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