"Collections" is the process by which creditors attempt to get nonpaying debtors to pay the money they owe. There are a large number of laws in Malvern, Arkansas governing the tactics that collection agencies can and cannot do.
What if I Am Owed Money in Malvern, Arkansas?
If you are owed money and the debtor refuses to pay, you have some options at your disposal. However, you must tread lightly when it comes to collecting your debts. Creditors and collectors are governed by strict consumer protection rules. Violating these rules can hurt your chances of recovering what you are owed, and even subject you to civil or criminal penalties.
For example, it should go without saying that creditors are not allowed to use threatened or actual violence when trying to collect. They are also not permitted to use abusive language to the debtor, or contact a third party about the debt.
One thing you are allowed to do is send a written demand for immediate payment. The demand should lay out the exact amount you believe is owed, so the debtor cannot plausibly claim ignorance of that fact. If a lot of money is involved, it might be prudent to hire a Malvern, Arkansas collections agency. If you go this route, it is critical to make sure that you hire an agency that is trustworthy, and follows the relevant law to the letter.
What if Someone Is Trying to Collect Money Against Me in Malvern, Arkansas?
If you truly owe the money being sought, and you are able to pay it, you should of course do so. If the collection caller is behaving civilly, you should do the same. Even if the caller doesn't behave in a civil manner, you should resist the temptation to respond in kind, and ask to speak with a supervisor, or simply end the conversation. Whatever you do, you should never ignore the issue. This will not make the problem go away.
However, you do have some options in Malvern, Arkansas. First of all, you should make an effort to get in direct contact with the creditor, as opposed to the collection agency, and try to work something out. If this fails, you can tell the collections agency to stop calling you, and they typically are obliged to do so. Of course, this doesn't eliminate the debt, but it can buy you some time. You should know, however, that when you show that you are not interested in dealing with the creditors or collectors directly, they will usually resort to a lawsuit.
If you have hired a Malvern, Arkansas attorney to help you through this process, he or she might advise that you declare bankruptcy. Once this occurs, creditors are legally barred from attempting to collect against the debtor. Of course, this is a major decision, and should not be made lightly.
How Can a Malvern, Arkansas Collections Attorney Help?
If you think that a collection agency is engaging in unlawful tactics, you should call a local Malvern, Arkansas attorney, as you might have a claim for damages against the creditor or the collection agency.
If you are thinking about filing for bankruptcy, a good lawyer in Arkansas can help you with that process, too.