What is a debt collection mediation?

A debt collection mediation is a legal process designed to help individuals and businesses resolve disputes with debt collectors. It is a form of alternative dispute resolution (ADR) that requires both parties to come to an agreement without going to court. In California, debt collection mediation is known as Consumer Debt Defense Law and is a voluntary process that gives debtors the opportunity to work out payment plans with creditors or debt collectors. The mediation process helps to provide a fair and balanced solution to resolving debt disputes in a timely and cost-effective manner. During the mediation process, a debt collection mediator will act as an impartial third-party and listen to both parties. They will work towards understanding each side’s position and ultimately work to develop a mutually beneficial solution. This can include a repayment plan, debt reduction, debt-refinancing, or other solutions. If both parties are unable to come to an agreement, the mediator will issue a formal opinion. If the opinion is not accepted by either party, the case can then be brought before a court. In California, debt collection mediation is an effective way for individuals and businesses to resolve their debt disputes without taking the more time-consuming, costly and hostile route of litigation. It is a viable option for Californians looking to protect their rights and come to a mutually beneficial agreement with creditors.

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What is a debt collection mediation?

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