Debt collectors act as an essential link in convenient debt recovery process

Financial Services

There are instances that for various reasons you may default in payment of EMIs on the loan. The outstanding EMI may be against your credit cards, house construction loan or car purchase loan and so on. Despite several requests if you fail to pay the outstanding EMIs, then the financial institution will have to avail the services of debt collectors. The debt collectors are authorized representatives of the financial institution. In fact, dealing with debt collectors is much convenient because they act as an essential link between you and the financial institution.

dealing with debt collectors

Follow the norms:

As the very name suggests, the debt collectors are charged with the task of collecting the debt from the debtors. But, debt collectors cannot go overboard in recovering the debt. In order to ensure fair dealings, the debt collectors have to abide by the law that prescribes certain norms for every debt collector to follow.

Your obligation:

On the other hand, when dealing with debt collectors, it can save you a considerable amount of time and can pull you out of embarrassing situations. However, on your part when the debt collector calls you or meets you personally, you will have to cooperate with him. In fact, according to law this is an obligation on your part.

Remember, a debt collector is an authorized representative of the financial institution, and he is permitted by law to approach you to collect the debt. Therefore, you should be fair in dealing with debt collectors.

The following suggestions may help you in dealing with debt collectors.

·        Basically, debt collectors visit or call you requesting for making payment of the amount that you owe to the financial institution. He can also visit to inspect the mortgaged property or review existing arrangements for payment of your EMI. He may even enquire about the reasons for the default.

·        Many times you may wonder how to deal with debt collectors. Rather, it is much easier to deal with him. The ideal method would be that you may explain to the debt collector your commitment to repay the amount. Thereafter, can also explain to him your present financial constraints.

·        As a viable alternative, you can even request him to reschedule the loan. In such a situation, the debt collector will contact the financial institution and try to arrange for the rescheduling of the loan. Therefore, fairness in your approach and your commitment to clear the loan can be the ideal approach while dealing with debt collectors.

·        Further, if you require any clarification on the debt, or if you dispute any of the amounts shown as outstanding, then you may request the debt collector to provide the necessary details or clarification. The debt collector is obliged to provide you all the information which you may need regarding your loan account. In fact, the debt collector will contact the financial institution and provide you all the details and clarifications.

·        On the other hand, while having to deal with debt collectors sometimes the debt collector may try to harass you or use force or give threatening calls. In such cases, you may lodge your complaint with the appropriate agencies. In fact, you can even lodge your complaint with the financial institution from where you have availed the loan.

Bottom-line:

It would be advantageous to interact with the debt collectors because they can act as an active link between you and the debtor. But, all that matters is your commitment to repaying the debt.

For more information on laws relating to debt collection, you can log on to the internet or visit this site http://www.debthelpline.com.au/2012/06/dealing-with-debt-collectors/

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