Wednesday, June 5, 2013

Texas Debt Collection Laws Can Give Debtors A Leg To Stand On

By Lucille Lamb


Texas debt collection laws offer a great deal of protection against creditors wanting to extract money through means other than legal. Texan citizens who know their rights are well armed against any fraudulent activities practiced by unscrupulous collectors. Debtors that find themselves in this situation for the first time should make comprehensive enquiries about their indebtedness and embark on a plan that will protect them from harassment, excessive payments on fees and unexpected loss of property.

In a financial situation where debt becomes a major problem to repay, the credit cards are usually the ones that get paid last or not at all. Many holders are not familiar with all the terms and conditions related to debt and should therefore read all the fine print before making application. When debt is out of hand, divide the secured from the unsecured debt.

Mortgage and motor vehicle loans generally have secured debts attached to them. Several stores offer this arrangement as well as it does offer better protection against defaulters. Anything bought under this contract could be recovered.

Credit card holders should be disciplined and not throw caution to the wind and go n spending sprees. Economies are volatile and saving money could be a much better option. Stores will generally not come and collect what is rightfully theirs but debtors will get their name sent to the credit bureau. This will stop them from obtaining further credit when it is really necessary.

Unsecured debts are connected to all major credit card companies. Failure to pay could result in a judgment issued by the court to extract payment. If you are still unable to pay anything due to your financial circumstances, nothing can be done against in terms of confiscation of any possessions. Cash strapped debtors are not advised to use all available funds to pay judgments should instead use it for daily living expenses.

The State takes good precaution that collecting firms do not beat the system and exploit the debtors. Rules and regulations are in place before they can even set foot here. Being in possession of a Surety bond is one of the foremost requirements. This allows for money to be available at all times should a client take an action against them. The claim is put forward and withdrawn from the surety bond should a client win the case.

Due to the huge crisis that emerged in the banks regarding the mortgage notes, Texan lawmakers have enforced better legislation to protect its citizens. The vast amount of foreclosures that went horribly wrong all over the country is drastically reduced in this State. The problem became out of control when mortgage payers ended up having their homes foreclosed even though all their payments were up to date and on time.

Companies accepting mortgage payments should also be investigated. Texas debt collection laws take a firm action against those that do not have their legal documentation in place. Citizens must not take anything for granted and insist on viewing the appropriate legal documentation.




About the Author:



No comments:

Post a Comment