New Delhi: Paying postpaid bills is not a very tedious process, however a lot of people tend to forget to pay the bills on time. They often push the bill payment to the last date and forget about it. Usually, for the first few weeks or months, the postpaid service provider would add penalty to the bill. They might also stop providing you the services during the period when the bill stands unpaid.
Let’s explore the legal implications of not paying postpaid bills on time.
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Lawsuits
Before filing a lawsuit, telecom companies or other postpaid service providers disconnect your connection. If the bill is still due, their agents will make back-to-back phone calls to remind you of the payment.
The company would then turn to debt collectors in neither of the aforesaid measures work. Once the debt collectors take over, they will either send a legal notice or ask you to appear at the hearing to settle the dues.
If you fail to appear before the court on the said date, it may result in default judgements. Therefore, it’s important to show up at the hearing. Once you’re at the hearing, they will enquire about your job and daily wages.
Why? Because it helps them in deciding whether they should garnish the wages or put a lien on the property.
However, if you fail to appear to answer these questions, the debt collectors can ask the court to issue a civil warrant.
However, it should be noted that courts don’t usually issue a civil warrant immediately. If the defenders are absent for the first time, the court gives them a second chance to appear at the hearing. But, if the hearing is skipped for the second time, then the court may send a civil warrant.
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Civil Warrants
Once a court issues a civil warrant of arrest, cops can immediately take you into their custody. After the arrest, you need to place a certain amount (specified by the court) as a guarantee to appear at the next hearing.
The collectors will start the process of hearing and issuing another warrant all over if you do not agree to pay the amount voluntarily.
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How To Deal With Debt Collectors
We’ve heard stories of debt collectors harassing people and their families over unpaid debt. In such a scenario, rather than being petrified, you should file a police complaint and move court.
However, a legitimate debt collector sends a debt validation letter within the first five business days of contacting you. Once you receive it, go through every detail mentioned in the letter, especially the debt amount.
You Are Not Helpless
Just because you’re unable to pay the debt amount for whatever reason, you don’t have to think that the whole system is against you. The system is designed to help people, not to torture them.
The government of India has enacted the federal law called Fair Debt Collections Practices Act in order to limit the actions of third-party debt collectors.
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Make A Strategic Repayment Plan
Firstly, you should confirm if your debt is past the statute of limitations of not. If you’re sued by a debt collector and the debt is too old, you may have a defense to the lawsuit. In addition, you may have a claim against the collector for violating the Fair Debt Collection Practices Act, which prohibits suing or threatening to sue for a time-barred debt.
If the bill falls under the statute of limitations, you need to fix it. If you’re unable to pay the amount, you can have a settlement talk with the service provider. If the talk succeeds and both of you can reach a point of consensus, then you can settle for that amount and be debt-free.
