Creditors’ Rights and Collection Option
The first attempts by many creditors during debt collection never involve the courts. Creditors can directly contact debtors and demand payment. Failure to this attempt, the creditor has the right to transfer the account of the debtor to another business having the primary focus on collecting debts (Sorell, p. 77-81).
Debtors’ rights
The failure of not paying a debt is not a crime in general context even though it breaks agreements or contracts between debtors and creditors but failing to pay certain court-ordered debts like child support can cause criminal charges. Apart from some bankruptcy situations, debtors will have the choice of paying debts in priorities they choose (Sorell, p. 77-81).
Debtors and creditors rights under the law
Under the law, creditors can sue for debt collection. In this case, the creditors have the entitlement for an enforceable judgment if its case is proven or failure by the debtor to contest the claim. Again, the court, in its judgment, does order the debtor to pay the debts but instead confirm if indeed the debtor owes the creditor given sums of money (Sorell, p. 77-81).
Mortgages rights
In the present market, buying and selling of loans, including the rights to service them is a norm. The mortgage lender does not necessarily have to be the one to service and hold the loan until its payment is made or when the home is sold.
Warranties
Products are warranted for the period defined by the selling company. “Lifetime” warranty implies justifying the product throughout its lifetime and not the life of the buyer of purchasers often think. Therefore, to avoid a warranty headache, it is necessary that the purchaser either reads the warranty labels/receipts or ask the selling company the period of warranty and conditions for the warranty to stay valid. Business companies are not obliged by any law on wrong impressions or interpretations customers make concerning the actual meaning of “lifetime” warranty. It is only ethical that they shed light on their warranty implications.
Work Cited
Sorell, Tom. "Credit, Debt and Consumer Protection." Business Ethics: A European Review Business Ethics 2.2 (2013): 77-81. Web
