Dealing with Travel-related Debt
Considering the sluggish economy, it is not surprising that travel agencies and rental companies are experiencing some financial difficulties, particularly due to lack of customers. Still, this should not be a reason for them not to meet their financial obligations and let one of their customers suffer through the indignity of being harassed by a collection agency just because that happen to drive a rental car with an expired registration.
If this unfortunate situation has caused such inconvenience on the part of the traveler, consider the following:
- Be aware of your rights
If you know that it is really not your debt, know that you should not pay. But if the collection agency still insists that you owe them, you can ask for legal advice and open up a case against the travel company. And only two things may happen: you will repay the amount that you owe or the creditor will be prohibited to attempt to gather any amount from you. - You must understand the process
Collection agencies can not simply show up and start asking you for money. They have a process to follow. First, they must inform you about the problem through the phone. Then based on the Fair Debt Collection Practices Act, they must follow you up with a letter of notification within the next 5 days. You then need to respond within 30 days. If after you attest that it is not your debt but the travel company’s and still the collector is bugging you, you can ask for the aid of a consumer lawyer. - Know the possibilities
Most collecting agencies say that debts amounting to $1000 are their cut off. But they have some considerations like the balance, the age and type of the debt, how old the account is and the number of accounts the client has. - Know how to discuss the terms
Collecting agencies can be accommodating if you know how to talk to them. They will usually offer a payment plan: where each of your payment will appear in the credit report until there is no balance. Some companies will allow you to pay part of the debt. - Know that there are people who can help
If a collection agency accuses you of owing some amount, and you know to yourself that it was not your fault, talk to your travel agent and ask them to back you up. This can save you from paying an amount you do not owe.
