"Collections" refers to the process by which creditors try to get nonpaying debtors to pay what is owed. There are various laws in Lincolnwood, Illinois regulating the conduct of collections agences.
What if I Am Owed Money in Lincolnwood, Illinois?
If someone owes you money and declines to pay it, you have various options at your disposal. However, when it comes to collecting their debts, creditors are governed by specific consumer protection rules. Violation of these rules while attempting to collect could hurt your chances at effectively recovering your money, and/or subject you to civil penalties.
Several practices that collectors cannot engage in include the use of abusive language, contacting third parties about the debt, and threatened or actual violence.
You may, however, send a written demand for timely payment. The demand should lay out precisely how much the debtor allegedly owes. If there is a large amount of money involved, it may be worth it to hire a Lincolnwood, Illinois collections agency, which will probably take its fee in the form of a percentage of the debt collected. You should do some research on different collections agencies in your area, to make sure the one you hire is trustworthy, and thoroughly follows the law.
What if Someone Is Trying to Collect Money Against Me in Lincolnwood, Illinois?
If you truly owe the money that is being sought, and can afford to pay it, you should do so. If the collection caller is behaving in an amicable manner, you should try to do the same. In any case, the worst thing you can do is ignore the issue hoping that it will go away. It won't.
Your best option in Lincolnwood, Illinois might be to contact the creditor directly, and try to work out some type of new repayment plan. The earlier you do this, the more receptive to your ideas the creditor is likely to be. If this isn't successful, you can demand that the collectors stop contacting you by phone, and they will typically be obliged to do so. Of course, this doesn't make the debt go away, and you should only take this route if you are ready to defend against a lawsuit from your creditors, since demanding that they stop contacting you usually leaves them with no other option but to sue.
If you have hired a lawyer in Lincolnwood, Illinois, they might advise that you apply for bankruptcy. Of course, whether or not this is a good idea depends strongly on the facts of your specific case, so you should not do so unless an attorney has reviewed the facts and determined that bankruptcy is a possible solution.
How Can a Lincolnwood, Illinois Collections Attorney Help?
If you think that a collection agency is engaging in unlawful tactics, you should call a local Lincolnwood, Illinois attorney, as you might have a claim for damages against the creditor or the collection agency.
Also, if you're considering applying for bankruptcy, a seasoned attorney in Illinois can tell you if this is a good option, and, if it is, help you through the process.