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New Rules Will Stop Creditor Harassment and Limit Their Ability to Pursue Payment

Tired of being hounded by collectors? Fed up with being harassed for payment on an account that’s already been paid angry-collectoror is unverified? There is good news on the horizon!

The CFPB (Consumer Finance Protection Bureau) is proposing rule changes to the debt collection industry as follows:

  • Debt collectors will be required to disclose debt details so the consumer can easily verify accuracy right up front. Currently, consumers receive a bill demanding payment without ever proving whether or not the collector has the right to receive payment, whether or not the amount owed is correct, and other vital information. This will provide transparency and, hopefully, increase accuracy and fairness.
  • Debt collectors will be prohibited from pursuing a debt while it is in dispute. Fantastic!
  • Debt collectors will be limited in their communication with the consumer. The intent is to stop undue harassment.

In the meantime, know your rights and demand to be treated fairly and accurately. If you don’t want to be contacted by telephone, tell the collector to contact you by mail only. Current law states they must comply.

You also have the right to negotiate a settlement. And so you know, a settlement (as opposed to paying in full) will in no way harm your credit score or jeopardize your ability to get a home loan. Even if you have to pay taxes on the amount “forgiven,” you still come out financially ahead by taking a settlement.

However, if the collection is old, paying it off now will likely lower your credit score, so better to let it age off your report (or handle it like the pros do).

What I mean by that is, if you negotiate a settlement the way the professional credit repair specialists do, you can also have the negative account removed from your credit report–a very smart strategy!

Thank you for reading my post, and if you know anyone who is struggling with collections, please pass on this good and vital information to them.

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