How to handle collection calls when in Debt settlement program

Original creditors and collection companies will call debt settlement clients numerous times to recover the debt. This is a major drawback of debt settlement program.

Debt settlement happens when the clients stop paying their creditors directly. Moreover, most of the debt settlement companies suggest their clients not to speak to their creditors directly. However, collection companies and creditors keep calling and "harassing" debt settlement clients and often tell them how "bad" a debt settlement program is in order to keep collecting debts, and creditors usually don't stop calling until they are paid, getting payments, or forced to stop calling by some legal mechanism.

Before we proceed further, it is important to know about FDCPA (Fair Debt Practices Collection Act).

The Fair Debt Collection Practices Act is an Act which creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act. Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy.

FDPCA is a federal law which protects clients from being called too late or too early or at specific times of the day, being threatened with harm, from relatives or neighbors being called, being verbally abused etc. Clients can also request collection companies not to call them at work, as their employer does not allow that. Clients can also request in writing not receiving any calls at all, using a "cease and desist" letter.

FDCPA has certain uncovered areas:

1. FDCPA is only applicable to collection agencies and some debts are held for long periods of time by original creditors.

2. Collection agencies use a variety of techniques to not comply with the FDCPA. To name some, ignoring it altogether! At times, collectors ignore cease and desist letters and don't return phone calls. Until and unless the client has adequate means and resources to hire an attorney, keep a log of all calls, understand FDCPA guidelines and monitor all violation, the collectors might continue violating FDCPA guidelines.

A new service provided by DAAN group utilizing a new technology solves the problems described here. The technology allows for calls to be immediately routed to a law firm which monitors FDCPA violations and forwards the calls to the correct debt settlement company. The 2 ounce DAAN unit can be easily installed into any phone line at your home, which is the most common source of collection calls. Over time, with correct usage of the DAAN technology, creditors typically find themselves no other outlet than to settle with the intermediary company.

There are few debt settlement companies that provide DAAN services to their clients. This helps the clients manage collection calls and live a peaceful life. Always make sure your debt settlement company offers you protection from collection calls.