Can I negotiate with a creditor?

Yes, you can negotiate with a creditor if you are facing financial hardship in California. As a consumer, you are protected from debt collection harassment and unfair practices by the Consumer Debt Defense Law, also known as the Rosenthal Fair Debt Collection Practices Act. Under the law, creditors must treat you with respect in all of their interactions with you. Creditors must also honor your requests to negotiate the terms of your debt. To do this, you can contact your creditor and explain your financial circumstances. If you are able to provide proof of your hardship, then the creditor may be willing to reduce the amount you owe, lower your interest rate, or establish a more manageable payment plan. You may also be able to negotiate a “settlement” with your creditor, which could involve fewer payments with a lower total amount paid. It is important to remember that creditors are not required to accept your request to negotiate; however, they are required to treat you with respect during any negotiations. If you feel that a creditor is not treating you in accordance with the law, you can contact the California Department of Consumer Affairs for assistance.

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