Debt Service Uk

Posts Tagged ‘Insurance Companies’

If you have a credit card, you may have heard from debt collectors more than once, reminding you that you are late with your payment. Most times you may find them annoying reminders. While debt collection is subjected to a regulation known as the Fair Debt Collection Practice Act, you are not dismissed from your obligation to pay your debt. The collection agency or the originator can file charges against you should you fail to settle your outstanding balance.

Many companies employ the services of a third party provider of debt collectors to contact and remind their clients about their debts. Debt collection services include, following up on clients through all means of communication tools, like fax, telephone call, mail or email. They are the ones who contact customers and remind them to settle their outstanding balances. Most debt collection agencies or companies operate under a “no collection, no pay” principle, meaning that if they cannot collect for the client, they will not be paid for their services. A long list of companies that need this kind of services include those outside lending companies such as banks, credit and insurance companies, The list also includes cable operators, water, heat and electricity providers, telephone companies, etc.

These debt collection services ease the burden for their client companies in going after delinquent customers. But it is imperative for companies to choose the right debt collection agencies. After all, these debt collectors communicate directly with customers and operate on behalf of the company.

The debt collectors must maintain an air of courtesy. They must not in any way harass the customer, and they must proceed with their tasks observing ethics and confidentiality. They must also properly identify themselves and not cause undue inconvenience to the customer. Customers, under the Fair Debt Collection Practice Act are protected against harassment from debt collectors.

When approaching your lender to make an offer of reduced debt repayments, it’s best to be completely honest and offer them as much as you can realistically afford to pay month by month.

Whatever happens, don’t try to call their bluff.
You might think that the best thing to do is to become ballsy about your situation. After all, you know that they dont want to take legal action (because they stand to recover less of their money), and they know that you know this.

So you brazenly call your lenders bluff. You ask for interest to be suspended and then offer them a ridiculously low monthly repayment, backed up by the threat if you want any more then Ill file for my own bankruptcy and youll get nothing.

Great idea? Not quite!

Most lenders will have heard this type of threat every day of their working lives. Its just defensive bravado that will make your position worse.

Do you know how most lenders will respond to this type of macho posturing? Well first theyll stop being so understanding and then theyll reply go ahead and do it!

Now bear in mind that most lenders (e.g. banks, building societies, insurance companies etc) are massive organisations, with vast amounts of money at their disposal. So as much as you might like to think that your business is vital to their continued survival, it isnt! Even if they received nothing from your bankruptcy, it would make less of an impact on their balance sheet than a fly hitting an express train head on.

So they double bluff you.

And then what do you do? Do you back down and look weak (in which case further negotiation will be.difficult, to say the least), or do you follow through with your threat and do something (i.e. file for your own bankruptcy) that you dont really want to?

Nasty!

You should avoid this at all costs. Dont even put yourself in that position!

As I said earlier, they dont want to start legal action, but they will if they have to! So dont even test them with this little bluff.