Harassment, Reposession and Other Debt

Creditors expect debts to be paid in full and on time. If you miss a payment or two, you can bet that the creditor will take steps to collect it. First you’ll get a polite letter reminding you that your payment is past due. If you don’t respond with a check, other letters will follow, each firmer in tone than the last. The second or third letter may threaten to turn the matter over to a collection agency or to the creditor’s lawyer. If you ignore these letters, you’ll soon receive a letter or telephone call from a collection agency or a lawyer. But there are limits to how far a creditor or collection agency can go to collect a debt.

Let’s say that your debt has been turned over to a collection agency, and the collection agency starts calling you at all hours of the day and night, at home and at work. The debt collectors calls you names and even goes so far as to threaten to call your boss and get you fired if you don’t pay up immediately. Can you do anything to stop this harassment? Yes. A number of laws now protect you from creditor harassment and other strong-arm tactics. The most important of these is the federal Fair Debt Collection Practices Act, which protects you from “debt collectors” – persons who regularly collect debts for others. The creditor is not covered by this act, but states usually prohibit them from harassment and other excessive collection tactics. Attorneys who collect debts on a regular basis are subject to the provisions of the Fair Debt Collection Practices Act.

One thing that is quite common when you fall behind in your payments is a letter from your creditor asking for the full balance of the loan even though there may be, say, two more years to go. Suppose, if you will, that your loan calls for you to make twenty-four monthly payments of $100. After making six payments, you miss two. The creditor sends you a letter stating that you are in default of the loan - $1800 plus interest to date – is immediately die and payable. Can the creditor do this? Yes – if the loan agreement contains an “acceleration clause” (which written loan agreements ordinarily do). Usually, though, you bring the delinquent payments up to date, the creditor won’t make you pay the rest at once. But if you don’t make up the back payments, the creditor will most likely accelerate the payments and demand the entire amount, and take you to court if you don’t pay it.

If you are having financial hardship and are considering filling for bankruptcy in the Sacramento area, please call a Sacramento bankruptcy attorney toll free at 1-888-446-4333 for a FREE confidential Sacramento bankruptcy consultation. YOU ARE NOT ALONE. Call Sacramento bankruptcy lawyer today.

We are a debt relief agency.

Call Toll Free: (888) 446-4333

Richard Allaye Chan, Jr.
A Professional Corporation
1000 G Street, Suite 220
Sacramento, CA 95814

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