Collection PhaseDuring the phase when an account is past due 30, 60, 90 or 120 days, the credit card companies will still send statements. They will also include fees such as late fees. If the account is close to the limit, these extra fees added on may push it over the limit at which time they will add overlimit fees. Before charging off the account, the credit card companies may try to collect the balance owed by calling the debtor directly or may hire a third party debt collector. Just like the credit card companies, they may try to contact you two different ways either through mail or by calling on the telephone. A new debt collection tactic that has emerged is automated calling where the debtor is called automatically and when the phone is answered, a voice recording picks up. The debt collectors may send out dunning letters to get the debtor to respond. Some of these may include settlement offers. After a series of dunning letters, a final letter may be recieved telling the debtor that they have 30 days to disput the debt. At this point, if the debtor has not responded in 39 days, litigation may begin, especially if the letters come from debt collection attorneys. At any point during the collection process, the debt collectors including attorneys have to abide by the Fair Debt Collection Practices Act. |