Duties and facts about debt collectors
Debt collectors in Sydney are any organization or association that is peculiar in collecting the debts from the people who own them. They may be heir by the creditors to collect the money free of cost or take some percentage of the debt that they collect. Some people who collect debt are also debt buyers; they buy the debt at a small fraction and then collect the full amount of debt. It is much complained process as it is very difficult to collect the debt on the assigned time. The creditor often faces the problem of recovering money from borrower.
Reason of having debt:
Anyone can take a debt due to any reason it can be some financial problem, health issues, having no job, want to start new business, any kind of disputes, when the expenses increase or in order to pay the already taken debt. When income, liabilities, capital, assets got reduce people mostly took a debt. In past we have a barter system to exchange goods with goods or with money. If sometimes the borrower is unable to pay back the money then he got forgive in jubilees only but mostly he has to punish by the opposite party. The creditor grasps the property of the Debtor and compelled him to pay the debt. Very often this system run in families and the children have to face the consequences and pay back of what their elders have taken. The greed of creditor makes him to abuse the power in order to recover his debt.
People who collect debt:
A collector can be anyone from the first party agencies who are the part of original creditors or they can be from third party agencies that are hired by the original party to recover the debt. Third party agencies work on the base of “no collection, no money” which means they can only earn money if they have collect the debt otherwise not. So, the collectors work according to the act of FDCPA “fair debt collection practices act” according to which they can only send a notice to the debtor only when 6 months of non-payment have passed but in some cases they have send the notice in 0ne or two months. Collector can send a letter to the debtor or can call him at his home or office only between 8:00am – 9:00pm in order to convey him the message to pay the debt otherwise he will face the consequences, he cannot call the person again and agin to annoy him. If the phone of the debtor is switched off and there is no way to contact him then he can call his friend or neighbor in order to confirm that his address is right or not but cannot divulge them about collecting debts.
Collectors cannot use foul language, threaten, misinterpret the amount or make false claim that they will arrest the debtor. Collector can come to your work place but cannot harass you. But if the debtor is not paying the debt the collector can call him again and again, put pressure on him and can go to the court take a legal action and file a case against him.
Beware of rules and regulations:
So, on the whole it’s the responsibility and the right of the creditor to recover his money by any hook or crook. He can go anyway using legal or illegal sources to recover the debt. If all this include defaming the debtor, disclosing its information regarding debt or threatening him beyond the levels within the due date to pay the debt, then debtor can also take a legal action. If a debtor thinks that he does not own the debt then he can argue with the debating companies. Instead if the debtor is not paying the money the creditor can seize his property and sold them, can took control of his bank accounts, stop the transfer of goods if he is operating any business in order to recover his debt. It is very important that the creditor and the debtor both should have the record of their debt and credit in case of any disputes to prove there honesty. A creditor can sell the debt to any other agencies to recover the money this is often more expensive then recovering the money at their own. So, this is all about how debt can be recovered.