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One of the worst things about credit card debt is having to deal with collection agencies, which is why it makes absolute sense to do your best to settle your debt with the credit card company, before they turn over your account to a collection agency. However, if your credit card balance has already been sold to a collection agency, you will have no other choice but to deal with them. To minimise the stress related with dealing with collection agencies, you should make sure that you always know your rights as a consumer. The first thing to do is look up the Consumer Credit Act 1974, which outlines laws that protects you from unfair practices, including collection practices. If you know what the debt collection agencies can and cannot do legally, then your stress levels will surely go down. One of the most important things you should know when dealing with debt collection agencies is that they are required by the law to furnish you with the original copy of your credit card agreement. If they are unable to do that upon your request, then they have no right taking your money from you. A good example of this is the case of Phoenix Recoveries v Kotecha Jan 2010, where in the Court of Appeal Civil Division passed judgement that "A creditor had failed to satisfy a debtor's request under the Consumer Credit Act 1974 s.78(1) for a copy of a credit card agreement as it had not, on the evidence, included the original, actual terms and conditions in respect of interest rates then in force. The creditor was, accordingly, not entitled to proceed to enforce the debt under s.78(6)." Clearly, they also need to follow rules, and since most debt collection agencies cannot, or will not produce such a document, then you can rest easy. Although you can beat debt collection agencies at their game, it does not mean however, that you should just forget your credit card debt. Remember, this debt affects your credit rating. You should still do your best to get out of debt, especially if you wish to rebuild your credit score. The important thing though, is that while you do your best to rebuild your credit score and pay off your credit card balance little by little, you can do so with peace of mind, knowing that these debt collection agencies really do not have a hold over you. Peter Carville is a freelance article writer who writes for Financial Facts about the current financial news and the credit crunch.
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