1. In a scene reminiscent of a Charles Dickens novel, a poor
resident of Michigan was ordered to pay a local juvenile
detention center slightly over a hundred dollars a month
for holding her sixteen year old son. After explaining to
the court of her inability to pay, she was thrown into jail.
All this happened, not in fifteenth century Britain, but four
years ago in America. For anyone who needs a collection
agency Raleigh has many that do not treat people that
way.
2. This practice is unconstitutional in many countries,
including the United States, but continues through a
variety of backdoor methods. For instance, another lady
stayed in jail for eight months past her release date after
she failed to pay a seven hundred dollar fine. She was only
released after a local human rights group sued on her
behalf. This is a huge contrast to the strict rules that
govern debt bureaus.
3. The behavior of the courts is in total contrast to debt
bureaus, which are regulated by very strict laws, the
violation of which, ironically, is supposed to be enforced
by the judiciary. They cannot threaten someone with jail;
they should not be abusive or rude, nor can they pretend
to be police officers or anything else they are not. They are
not allowed to use violence, or even threaten to do so.
4. The bureaus are generally the end in a process that may
start months, or even years before. The root of the
problem is, of course, a defaulting debtor. This may be the
result of a collapsed business, an illness, loss of job,
carelessness, forgetfulness, while some are victims of sales
pitch of lending institutions, among other reasons.
5. Whatever way it starts, the result is a default. Debtors are
advised to reach out to their lenders at this point; most
are willing to reach some sort of agreement. Some may
increase the repayment period, which has the effect of
reducing the size of individual payments. They may choose
to suspend payments for a certain period of time as the
debtor gets their act together.
6. For this reason, debtors are advised to engage their
primary creditors and negotiate an acceptable repayment
plan, and keep to their side of the agreement once that is
done. They shouldn't avoid calls or any kind of
communication from anyone they owe money; that
generally results in an increasingly urgent barrage of
letters and calls.
7. If the creditor is consistently ignored, they may have no
choice but to turn to debt bureaus. This is usually under
some sort of agreement; the bureau may collect and get
paid a fee, or they may be paid a percentage of what they
collect. Some buy any accounts due for a deep discount,
and seek to collect the full amount plus any interest
accrued.
8. If a creditor is unable to get any response from a debtor,
they eventually turn the account over to a debt bureau.
They may do this through a number of agreements; the
collector may do their work for a fee, or they may buy the
account outright for a discount and attempt to collect the
full amount, plus interest. If anyone needs a collection
agency Raleigh has a variety, but debtors should not wait
until they come calling.
