Debts can be the most fearsome event that can happen in a person's life. We all want to pay our bills on time but sometimes due to some financial crunch it is not possible to make even minimum payments and meet due dates. During such situations it is advisable to call on your creditors and inform them. In many cases, they may be willing to reschedule payments or make other considerations to help you repay the debt.

If a debt goes unpaid for an extended period of time, creditors may turn your account to a collection department or agency. Most collection professionals do not utilize threatening and intimidating collection techniques. But it is important that you know your rights as a consumer when dealing with collectors.

It is true that debt collectors do have the right to demand payment, and eventually take legal action if necessary. But the Fair Debt Collection Practices Act prohibits all kinds of harassment.

EG:
- Third party debt collectors cannot phone at your home repeatedly, or call before 8 a.m., or after 9 p.m. without permission.
- They can contact your friends, coworkers or neighbors only to inquire about your whereabouts and not for any other purpose.
- Obscene language or threats of violence are absolutely forbidden and a collector is not allowed to threaten you with false statements.

A collector is also not allowed to call at your workplace without your approval. If the debt is being collected by a collection agency or other third party, you can send a letter using registered mail to the credit collection agency asking them to stop calling you. By law, they must comply.

The fastest, safest and easiest way to get you free from debts is to use the services of a Certified Debt Arbitrator. With debt arbitration your debt amounts are reduced to a great extent. The Certified Debt Arbitrator also guides you on restoring your former financial position.
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It happens all the time. Debt collectors try to collect on debts that consumers have no knowledge of or never owed in the first place. So, what do you do when a bill collector demands payment in full on a debt that you never knew existed? You need to request a validation of debt.

A validation of debt is a request for proof that the collection agency that is contacting you owns the debt/or has been assigned the right to collect the debt on behalf of an original creditor. A validation of debt also includes a complete payment history, starting with the original creditor, and a copy of the original signed loan agreement or credit card application. This may be a debt you really owe or possibly a debt that was sent to collections by mistake. Either way, debt collectors can be very unapproachable. It is important to remember that you also have rights. According to the Fair Debt Collection Practices Act, Paragraph 809, - Validation of Debts:

"(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing:

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. (c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

The information presented in this article only covers some of the more important aspects of debt validation. It is important to do your research and fully understand your rights and obligations prior to attempting any type of communication with a debt collector.

Alan Barnes IAPDA Certified Debt Arbitrator President and CEO of Debt Regret http://www.debtregret.com

Article Source: http://EzineArticles.com/
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There is a very realistic and easy solution to a problem faced by millions of North Americans, too much debt ! With a little help individuals and business owners can regain their financial life and start to live and do business again.

Unforeseen circumstances such as an unexpected job loss, medical bills, heavy school fees, tax demands, house repairs, uninsured accidents or disasters, or other financial obligations these can all place individuals and business owners in a precarious financial situation.

When faced with claims from collection agencies or law firms it often feels like there is no one on the Debtors side. This doesn't have to be the case, a Certified Debt Arbitrator will represent the debtor client in a mediation capacity with creditors. Debt Arbitration will immediately stop the harassment that is experienced from bill collectors.

The Certified Debt Arbitrator will contact each creditor and see to it that all further communications are made to the Arbitrator. Major businesses resort to the mediation process whenever possible, and now this service is also available to individual consumers and small business owners, and on a contingency basis.

A Certified Debt Arbitrator is trained to know the laws that govern Debt collection and the rights of the Debtor. The Arbitrator is also trained in negotiation and will use his/her knowledge and negotiation skills in a non-confrontational way, working with the Creditor to resolve a Debt or Credit problem.

This means that debts can be restructured or reduced by negotiation, to take account of the current financial capability of an individual or business. On a successful settlement only, a previously agreed fee is paid to the Debt Arbitrator.

Certified Debt Arbitrator are an ally to Business and Debt Problems are Professionally Eliminated
When faced with cash flow problems, many businesses end up by default in terminating their operations when in fact they could remain as a viable entity. It is a fact that the vast majority of business owners are well versed in their particular product or service. However, it is equally a fact that these same business owners are not always proficient in dealing with the financial aspects of their business.

For this reason, the services of the Certified Debt Arbitrator can be invaluable in evaluating the potential for the delinquent Debtor to make a settlement with the creditor based on a realistic financial assessment. The result of which can often avert the possibility for the debtor company sliding into insolvency and closing the doors of the business, a business which would otherwise have a good future with all the benefits of employment, capital investment and profitability.
According to Dunn & Bradstreet, there are approximately 35 million businesses in the United States and Canada. Approximately 20 %, or 1 in 5 businesses are involved in some form of debt dispute or cash flow problem.

It is estimated that there are over 130,000 Business to Business lawsuits filed every day in North America. Many of these can be handled through Professional Business Debt Arbitration.

A Growing Need and Major Career Opportunity
With the global markets experiencing turmoil, and the North American manufacturing, farming, and financial markets apprehensive, delinquent individual consumer and business debts will become more prevalent.

Debt Arbitration practiced by Professional Debt Arbitrators is a unique approach to dealing with debt problems being experienced by businesses and individuals. The Certified Debt Arbitrator has been trained in a system for debt mediation, which has been proven very effective.

Why the Certified Debt Arbitrator is More Successful than the Debtor:
In most cases there is a history of numerous requests for payment by the creditor, and broken promises by the debtor. Frequently these lead to filing a lawsuit - the creditor is adamant on collecting 100% of what is owed (plus collection costs) from the debtor. Emotions seriously influence all communications between the parties.

Certified Debt Arbitrators are specially trained in methods that have been proven to work, based on years of experience, emotions are not part of the equation. This system has been proven very effective... especially in situations where debtors have given up all reasonable hope of an acceptable settlement.

The Bottom Line
The actual process of Professional Debt Arbitration incorporates special negotiation techniques, whereby the delinquent debtor's (Individual or Business) financial situation is analyzed taking into account the complete spectrum of their past, current, and future business potential. This translates into presenting to the creditor or the creditors representative (an attorney or collection agency) a negotiating forum which provides the creditor with the information they require to determine the viability of a settlement, considering the current financial circumstances of a debtor. This is coupled with a thorough knowledge of the laws governing Debt and Credit and a friendly business approach, so that a true mediation takes place in a non-confrontational, or adversarial atmosphere, this enables a mutually beneficial settlement to be achieved.
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