Must-Know Rules for Avoiding Total Credit Recovery Harassment

For years, scenarios, where a borrower commits suicide due to total credit recovery harassment, have been in news. Such events created a fear of recovery agents in the minds of borrowers. Therefore, the federal banks of every nation now standardize training for recovery agents, teaching them the correct method of collection. They have also set separate debt collector harassment laws to avert such instances thereafter.

Know the Facts

As a borrower, you should also keep that in mind that banks either have an in-house collection department or they outsource the job to a third party. So, if you don’t repay the principle sum along with the interest within a specified period, they will have an eye on you.

Many times, these recovery agents have big targets to achieve and incentives linked to their number and volume of the collection. That’s why they are so motivated about the collection drive. But you should know the rules to tackle them just right.

Handling a Debt Collector

Know the Rules: As a debtor, you are privileged with certain rights. So, make the correct use of them to avoid any sort of recovery harassment.   

Identity: It is always wise to ask for the agent’s identity card to know which bank or financial institution they belong to. This way you can prevent yourself from falling into a speculative pitfall.

Privacy: One of many rights you enjoy as a debtor is the privacy of your deal. The agent under no circumstance can share the details of your borrowings with a third party.

Time: He/she should only reach out to you during working hours. If they contact you beyond that time period, you should inform the bank about it.

Calls: They are obligated to respect your request. Thus, if you don’t want them to disturb you during a specific time or at a particular place, you can tell them explicitly.

Decency: No abusive language should be entertained by you. The agent should only talk in a decent manner even if you are unable to pay the principle sum. You should also receive an easy-to-understand mail from the bank.

Investigation: As and when you file against the collector’s misbehavior, the bank shall begin the investigation and hold the agent accountable for his collection behavior.

Inappropriate Occasions: You can ask the agent to not disturb you whenever an inappropriate occasion like the death of a family member takes place.

Records: Banks maintain a record of every call between the borrower and the agent, along with the time and day when these calls took place. Also, the bank needs to maintain a record of copies sent to you by the agent.

Disputes: Disputes are common in times of non-payment. However, if the agent crosses the limit and starts harassing you, contact the lender right away.

Seek Help: Credit counseling agencies are trending for those who are unable to repay the amount due to personal and macroeconomic reasons. This counseling helps borrowers come out of debt if the reason for non-payment is not temporary.  

Final Words……

Though these rules are for you to avoid harassment due to non-payment of debt, you should rework the household budget and ensure provisions for uncertain tweaks in the repayment amount.