Educating Consumers on Debtor Rights
WESLACO – It’s National Consumer Protection Week and the Better Business Bureau is educating consumers who owe money about their rights.
CHANNEL 5 NEWS spoke with a representative who says you may not have to pay the entire amount of your debt.
Robert Obregon, with the BBB, tells us an important part of becoming debt free is understanding how debt collection works.
He explains when original creditors determine that it is unlikely that they will collect a debt, they normally decide to cut their losses and sell that debt to a debt buyer.
Obregon says on average debt buyers pay 0.04 cents for every $1 of the debt. The older the debt, the cheaper the cost to the debt buyer.
He says that’s great news for the debt buyer as well as the consumer. He explains that allows many debt cases you can negotiate the amount of your debt. Meaning in many cases, you can negotiate a much lower repayment amount than your original debt.
Obregon says you have to ask debt collectors for this option. He recommends calling your debt collectors and negotiate lower amounts sooner rather than later.