Use of Fair Debt Collection Stance for Consumer Loans
Consumer loans are referred to as borrowed amounts by an individual for a stipulated time. The lender is usually some financial institution i.e. private banks or state banks. Debtors are required to pay back the debt amount in instalments before the maturity period. However, if any debtor fails to honour their financial commitments or debt obligations within the specified timeline, then the outstanding payments are recovered using various methods. Usually, the most common method of procurement by financial institutions is to employ credible agencies or agents for debt collection in Sharjah.
Fair debt collection is a concept that applies specifically to consumer loans. This approach solely focuses on ensuring a just, unprejudiced, and upright procurement policy while pursuing individuals to settle their debt obligations. It is important to gain the necessary awareness regarding this perspective of debt collection in Sharjah. Debt Collection in Sharjah by the top debt collectors and Lawyers in Sharjah. It gives enlightenment to both the creditor, and debtor along with the debt recovery company to know their rights, and limitations in the debt procurement plan, and process. Such practices eradicate any unfair means or mindsets associated with getting back the owed amount by hook, or by crook. Moreover, they establish an equitable platform for both the crediting institution and loan receiver that promotes justice, and fair treatment and shuns any act that promotes abuse, exploitation, bullying, mistreatment, or cruelty.
Under this Fair Debt Collection:
Under this fair debt collection stance, debt collecting agents, or debt collection companies are obliged to comply with the legal injunctions regarding debt procurement. They are not allowed to intimidate, hound, torment, or use obscene language verbally, or in writing when interacting with the debtor party for the collection of debt on behalf of the crediting institution. The mental, physical, and psychological well-being of the debt receiver should not be harmed on the pretext of procuring the withheld debt amounts. In addition to this, debt collectors should not design their procurement tactics in a way that becomes a harrowing experience for the debtor. Unnecessary pestering, employing foul language, or using public platforms to demean, or malign the reputation of the debtors is a big no-no.
Furthermore, debt collectors are morally and legally obliged to avoid using deceitful methods, or taking fraudulent measures to coax the debtor to pay the outstanding debt amounts. They should not use any forged documents to threaten the debtor party in an act of intimidation. Any action that has a tinge of blackmailing is not allowed. In short, professional procurement agencies are expected to act in an ethically, morally, and legally sound manner that does not jeopardise the physical, or emotional safety of the debtor party in any way.
Debt Collectors should not present any false information, or deceptively claim an amount over and above the originally issued debt amount. Such devious means and tactics violate the decree of law and put both the creditor and debtors at risk. In addition to this, they should thoroughly communicate their proposed plan of action to their creditor client to take their consent while keeping them informed of all the implications that may arise as a result of executing a particular tactic, or procurement strategy. Hence, honest and transparent work and communication liaison are necessary between the crediting company and their hired professional help in the form of debt collection agencies to avoid any misunderstanding or use of fraudulent conduct without informing the client or taking hai consent just for the sake of a desirable fee acquisition.