Debt collection is about to change…
The Covid-19 pandemic is a global crisis that came along with a lot of hardship, panic, uncertainty, and confusion.
With the rapid increase in the number of global cases and the mandatory lockdowns that ensued, it has been documented that a record number of 17 million Americans filed for unemployment benefits.
The crash of many business-to-customer industries and the resulting surge in unemployment rates saw many Americans – who were already heavily in debt – get into more debt.
How will Covid-19 disrupt the debt collection industry?
· Digital debt collection: Social distancing has forced many business-to-customer industries to find new ways to digitalize or go extinct; the debt collection industry is no different from these.
Debt collectors have found a way to make the entire debt collection process digital and seamless, thereby removing Covid-19 and the ensuing lockdown from the list of reasons why you couldn’t pay your debt.
· More focus on retrieving debts: Since over 100 million Americans have now been vaccinated, and the economy is waking up from its year-long slumber, debt collectors are ready to resume debt collection efforts full-force.
· Federal aid: Many governments will set up relief funds to help alleviate the hardships caused by the global health crisis. A fantastic example of this is the $953- billion Paycheck Protection Program set up by the United States government through the CARES Act.
What can you do about it?
1. Manage your Federal student loans: Due to the Covid-19 pandemic, most payments on Federal student loans have been suspended.
2. Mortgage payment help: You should seek the assistance of your loan servicer if you observe that you will be unable to meet up with your next mortgage payment to find out what options are available to you. Alternatively, call us at 877-700-5790 to do it for you, as you may be eligible for mortgage relief or forbearance.
3. Get tax help: Get help from a professional tax consultant if you are behind on your property taxes or any other form of tax payment. We recommend New Start Tax Consulting, they solve both Federal and state tax issues.
4. Get small loans to cover personal and business expenses: Credit card issuers like Chase, Citi Bank, and Capital One are offering assistance with credit cards, personal loans, and small business loans to their customers during the Covid-19 pandemic. You may be able to get a credit line increase, collection forbearance, or you may be allowed to postpone your payments.
5. Contact your debt collectors: If your income has been severely impacted by the drastic effects of the Coronavirus pandemic, it is important to reach out to your creditors to inform them about your situation or call us at 877-700-5790 for assistance.
6. Talk to a debt collection attorney: Speaking with a debt collection attorney will not only set your mind at ease but also open up doors to a myriad of possibilities that are invisible to an untrained eye. Call us now at 877-700-5790.
ABOUT CONSUMER RIGHTS LAW FIRM, PLLC
Consumer Rights Law Firm, PLLC is a law firm that specializes in helping clients who are facing harassment from debt collectors in any form, including telephone communication. It is never advisable to suffer alone, rather contact our office to get more information on how to stop the creditor harassment you currently receive. Our office has been assisting consumers since 2010, and we have an A+ rating with the Better Business Bureau.
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If you are interested in learning more about how to safeguard yourself and prevent even more harassment from debt collectors and their agents, call us at (877)700-5790 for immediate assistance or visit our website at www.consumerlawfirmcenter.com
Last Updated on December 14, 2021