A financial obligation repayment agency is a company that fees a cost to behave for you personally to pay what you owe for you in negotiating or making arrangements with creditors. This will be a voluntary contract between your debt payment agency (acting for your needs) as well as your creditors.
A creditor need not accept your re re payment proposal. Even in the event a creditor takes your re payment proposition, it may be terminated unless you comply with most of the terms associated with contract. The creditor can resume collection activity then on your financial troubles.
The agency must let you know within thirty days to be informed by a creditor that the creditor has do not take part in or has withdrawn from a financial obligation payment system.
To learn more regarding how financial obligation payment agencies work, begin to see the Bill Collection and Debt Repayment tipsheet.
Financial obligation repayment agreements
A financial obligation repayment agreement must:
- be in writing, signed and dated by you and your debt payment agency
- consist of your title, target and phone number therefore the title, address, cell phone number and in case available the fax and current email address associated with debt payment agency
- explain most of the solutions which will be supplied
- itemize all the fees you have to spend
- list all creditors which is compensated beneath the contract
Financial obligation repayment agreements must also state:
- the quantity you owe
- the quantity of each payment
- the routine of re re payments
- the sum total amount of repayments for every creditor
exactly what a financial obligation payment agency or agent cannot do
A financial obligation payment representative or agency cannot: