Consumer Rights Regarding Debt Collection - How New Consumer Protection Laws Apply to You
Do you know your consumer rights regarding debt collection? Well, it is time that you must learn about your rights. The Federal govt. has introduced the new consumer protection laws which apply to you in case you are burdened with huge credit dues. After America was hit by recession, scores of people lost their jobs and they failed to repay their debts. It is because of this fact that they started filing for bankruptcy.
As the number of bankruptcy filings increased steadily, the economy suffered as a whole. The creditors lost their liquidity and they failed to manage their costs. The creditors are profit making organizations and they rely on the profits that they make from the consumers in form of the interest that they earn. As the creditors failed to get back their money because of the increasing number of bankruptcy filings, they incurred loss and lost their financial equilibrium. It is because of this reason that they approached the verge of bankruptcy filing and the economy as a whole suffered. The economy rolled further back into recession and every economic unit suffered even more.
To take care of this situation, the gov. announced tax breaks for the consumers. The govt. also pumped in billions of dollars into the economy. This money is known as the stimulus money. It was declared by the govt. that the creditors who agreed for debt settlement deals will enjoy these benefits. It is because of the fact that once the creditor agree for settlement deals, they fail to get the whole of the money that they give out to the consumers. They get back only a part of the same and therefore they incur loss. This loss is made up by the reduction in the taxes and stimulus money in the market. Since the creditors get this back up from the govt. they are now more open to settlement deals. This means that if you are looking for a settlement, you can easily get this.
Also, since the govt. is taking care of the loss that the creditors bear, you have every right to force the creditors to agree for settlement. If they don't agree, you have the traditional method of bankruptcy at your disposal!
