How to Stop Collection Procedures

Many people are falling behind on their loan or credit card payments and are beginning to experience the frustrations that are attached to the collections processes that are started by unhappy creditors. While the collections process is annoying, it is also very easy to stop; debtors have more rights than creditors.

The collections process purposefully creates a planned high-pressure or uncomfortable situation for debtors who owe money. When a commercial collection agency is hired to collect money from a debtor, their services are often paid through a percentage of the money that they are able to recover from the debtor. The agency will act aggressively towards the debtor to earn their paychecks.

What many debtors do not understand about the initial collections process is that they are still in charge of their own financial situation. The initial collections process is heavily regulated by the Federal Trade Commission, with many areas also having state and local regulations that apply to collections as well. The bottom-line to the initial collections process is that a collection agency is powerless to take money away from a debtor.

Collection agencies function by sending out a series of urgent sounding letters that attempt to convince a debtor to send a payment on the overdue account. These letters are often coupled with a series of negative telephone calls that are simply fishing for information. The collection agency wants the debtor to give information that can later be used after a court proceeding to garnish wages, attach bank accounts, or to sell property.

You have the right to STOP collection agencies from ever writing or calling you again. The Fair Debt Collection Practices Act contains an empowering tool in for the consumer. By law, a collection agency must stop contacting you after they receive a letter telling them to.
The body of the letter should basically read:
You are hereby notified under provision of public laws 95-109 and 99-361, also known as the Fair Debt Collection Practices act, that your services are no longer desired.
You and your organization must CEASE & DESIST all attempts to collect the above debt. Failure to comply with this law will result in my immediately filing a complaint with the Federal Trade Commission and this state's Attorney General's office. I will pursue all criminal and civil claims against you and your company.
Let this letter also serve as your warning that I may utilize telephone recording devices in order to document any telephone conversations that we may have in the future.
Furthermore, if any negative information is placed on my credit bureau reports by your agency after receipt of this notice, this will cause me to file suit against you and your organization, both personally and corporately, to seek any and all legal remedies available to me by law.
Since it is my policy neither to recognize nor deal with collection agencies, I intend to settle this account with the original creditor.

Collections services cannot take money away from a debtor without a court order. Debtors will be notified about any court cases that are filed against them. If a debtor honestly does not have any money to repay to a creditor, it makes more sense to talk to credit repair service than it does to talk to the collections service. With the credit repair service, actual steps can be taken toward solving the financial dilemma.

Arguing back and forth with a collections service does not accomplish anything when there is no money for repayment. Credit repair services have the ability to work with creditors for you so that payments can be reduced, or in cases of severe debt, help by explaining bankruptcy procedures. Bankruptcy still has one area in Chapter 7 that will allow for people in poverty to remove all debts without any necessary repayment plan.

The time to contact a professional credit repair service is when there are more bills than money to make payments. By acting fast at the first sign of financial troubles, the collections processes can be eliminated in favor of a solution to the problem of not having enough money to pay bills. The quicker a solution happens, the faster your credit report can be rebuilt into providing the opportunities for a pleasant lifestyle.