In Missouri, creditors who cannot collect an outstanding balance from a consumer can turn their account over to a collection agency. When this happens, the collection agency purchases the account from the original creditor. After the acquisition of the account, collection agencies utilize a multitude of tactics to collect the balance. A debt collection lawyer in St. Louis, MO can help consumers facing these circumstances.
Stopping the Harassment
Under state laws, collection agencies cannot contact the consumer at work. They are also restricted to certain hours in which they can contact the consumer at home. For example, the collection agency cannot call the consumer before 8 am or after 9 pm. The consumer can stop the collection agency from harassing them by submitting a written statement to the agency or by informing them via phone to stop calling. If they don’t comply, the consumer can take legal actions against the collection agency.
Reviewing the Statute of Limitations
For consumer loans, the statute of limitations is seven years. If the original creditor doesn’t collect the debt within a period of seven years, they forfeit all rights to acquire any portion of the outstanding balance. However, if they sell the account to a collection agency, the agency can take legal action based on the total value of the loan.
Filing for Bankruptcy
A consumer can also stop legal action by creditors and collection agencies by filing for bankruptcy. Any debt such as an unsecured credit card can be discharged through bankruptcy with court approval. If the creditor recovered their loss through an insurance claim, the court will discharge the debt.
Additionally, once the consumer is approved for bankruptcy, the automatic stay prevents any legal action by creditors. This includes all creditors included in the bankruptcy claim. It doesn’t include any additional debts.
In Missouri, creditors with outstanding debts may suffer through the harassment of a collection agency. However, the law protects consumers from unlawful treatment. This includes unnecessary threats and unwanted contact. The law offers venues in which the consumer can avoid legal action as well. Consumers who need to discuss these measures with a debt collection lawyer in St. Louis, MO can visit Stlbankruptcyfirm.com for further details.
