Collections

I sent letters to the debt collection agencies that I owe money for medical bills (2600 across 6 accounts) to settle the debts at 25% and to remove entirely from my record. Two have responded asking for full payment, one will remove entirely, other said it would report as "paid in full". What should I do? Should I be renegotiating with them for less than the full amounts? The remove in full is tempting as is, but I feel the "paid in full" definitely has to be renegotiated. Thoughts?

They cannot remove it from your credit report. The report will still show that you were delinquent so matter what they are telling you as far as "fixing" you credit report, it is a lie. If the collection agencies want any more than the original amount owed (late fees, etc.), tell them to pound sand. Offer only as much as the original amount. The collection agency bought the debt for much less than you originally owed and they are just hoping that you will "bite" and pay whatever they ask. You can always contact the original creditor and pay the bill directly with them. The collector will just get a refund of the amount that they paid to the original creditor for the "ownership" of your debt.

I was just contacted by a collection agency for an $11 (energy) debt I’ve never heard of…I’m very careful with money, have excellent credit and want to make sure this doesn’t effect my credit, as I’m planning on buying a house this summer. Obviously I can pay it off (probably easier than challenging it), but how do I get this debt collection off my credit?

Do everything in writing, i.e. send them letters and ask that they only contact you by mail.
Ask the collection agency to prove the debt is yours.
Verify the information they provide.
Pay it if it’s yours.
Send them documentation it if it isn’t.

Just because a collection agency contacts you don’t mean there’s a ding on your credit.
Part of settling the debt could be a requirement that it not be reported to the credit collection companies.
Get the agreement in writing.

If you have a negative collection on your report that passes seven years I understand it is removed from your report. Now after seven years can the collection agency resubmit the debit for another seven years or is it anchored to the original date of seven years past. Also does moving states change anything I know each states debt laws are different but does changing states half way through seven years reset the time limit. I thank you for any help you can offer.

They can not re-age the debt but they can call you until till the end of time.

In other words what I am asking…can a collection agency call your business and tell your employee that you have an outstanding debt that is in collections? How much the debt is for and what year its from?

They will claim that business debt is not covered under the FDCPA because it only covers consumer debt.

I just received a letter from a debt collection agency for $800 dollars and i dont have much or any money, what can i do? any way to reduce it? and i’m not sure why i owe so much.

The first answer is right - don’t pay right away.
First you will have many questions on how to settle with them, and if it actually does you any good.
Whatever you do, don’t acknowldege the bill until you know what to do.
Asking on here will help - also a good book from a library or bookstore.

$800 could have easily started as a $200 bill.
Add on a couple of years of late fees, and interest it can easily double.
Then when the collection agency gets it, expect fees that can easily double.
That’s how that bill could have gotten to $800.

Do this for me today:
go to annualcreditreport.com
and print out all your credit reports for free - no credit card required.
Sounds like you don’t check them - you should once a year.
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What information do debt collectors receive when a company forwards a debt for collection? Do they simply get the information for the debt (name, address, phone, soc. security number, etc.) or do they get the entire account history etc? Also do debt collectors have the ability to file criminal charges for nonpayment or only civil to get the money back?

Debt collectors will usually be provided with your name, social security number, date of birth, last known address, last known employer, current balance owed, and the reason for the underlying debt. If they need further information (such as an account ledger), they will contact their client.

There is no such thing as a criminal charge for non-payment of a debt. If, however, you fail to comply with a court order (such as an Order For Examination), you may have a bench warrant issued. Then you can be arrested. If the client wishes, they can give the collection agency permission to sue on their behalf.

First of all, I was not aware of the debt. Also, I believe my credit is in good standing. However, all of a sudden, I received a letter from First National Collection Bureau, Inc. that I owe a $952.00 debt. I called and they told me to call NCO Financial Systems. NCO asked for my social security and told me that the debt was with American Appliance from 1997 which was about 10 years ago. This doesn’t make any sense to me. They told me that they’ve been trying to contact me by mail at my previous address. How come it took them 10 years to discover my current address? Also, what is a statute of limitations (SOL) and how does that apply to me in Pennsylvania?
So I called First National Collection Bureau during their "office hours" and I got a message saying "We are unable to transfer your phone call. Please call again at a later time." In that case, I looked up their name and phone number on www.mybbb.org and no matches showed up. I also called NCO and asked if they had any associatio with First National Collection Bureau, but I have the feeling the operator could not understand me. Finally, I looked up the number given to me by First National Collection Bureau online and it does not match for NCO.

Joe Cool wins today’s "Studly’s Moronic Answer" award….

I’m gonna give Rich A an honorable mention. Why is it that when you become a collection agent you automatically assume every debt is legitimate and the debtor has to pay it? Did you not see the part in the question where he said he was not aware of this debt? Just contact the collection agency and make payment arrangements! BULL!

You also need to re-read the Fair Debt Collections Act. When you tell a collection agent to not contact you, that means forever! Not 90 days! And the fine isn’t $10,000….it’s only $1000. (Wish it were higher). Did you ever read the FDCA???

OK, so let me once again attempt to clean up these bad responses…..

1) This debt is from 1997. The SOL for most debts is from 4-6 years. But in this case, you claim it’s for an appliance. Very good chance this was a written contract, and the SOL on those can be longer. But very rarely more the 10 years. In Pennsylvania, both written and open contracts have a SOL of 4 years. You are safe.

2) Identity theft is a big problem. You are most likely a victim. Your message leads me to believe you have never looked at your credit report. I suggest that you look at link #2 and study it about Identity theft. Get a copy TODAY of your credit reports at http://www.annualcreditreport.com there is no charge for this.

3) Send a letter to the collection agent demanding that the validate the debt. See the third link for a good sample template letter. Include wording that this debt is past the Statute of Limitations, and that they are to "cease and desist" further contact with you. This will stop their calls and letter. Once they realize that you are aware of your rights, and you know the SOL has expired, they will stop pestering you.

The only thing they should send to you is a copy of the proof this is your debt. That means a copy of the signed contracts, bills, receipts, and everything used to calculate what they claim you owe. I’m guessing they don’t have it after this long.

Regarding this nonsense about calling the Better Business Bureau….people need to stop referring these jokers. The BBB is made up of business people. They claim to "self police" their members. They have no legal authority. They do not help you with legal matters. The very best you can get from them is a list of complaints against the company, so you can decide if you want to do business with them. Why on earth would you want to do business with a collection agency? This advice always makes me giggle….

Contact me if you still have concerns.

prepaid credit card which I prefer not to use. Can I use a money order as certified funds call them with the money order number and overnight it. This is a debt collection agency claiming to be lawyers.

I agree, CatDad gave excellent advise.

You should know though that they cannot force you to pay by certified funds. If they don’t take payment in the method you want to make it, then you can always not pay them.

You don’t want to give them your bank account number, which is on your checks, because debt collectors are notorious for overdrawing checks.

If you have negotiated the debt down, then get that in writing before paying anything. At that point, I think it is safe to pay by check so long as it is a solvent debt collector. You have good payment tracking with your bank that way and if they overdebit your account, you can sue them for breaking a variety of laws and get back much more than it costs you.

If they refuse your method of payment, then tell them to go back to the creditor and tell them that you offerred to pay and they refused payment.

HSBC passed my overdraft debt to their in-house debt collection agency.

DO they add more charges?
Can they take the things I own?

hi, Their in-hose debt collection agency is the first attempt to recover the debt owed, they will contact you regarding recouping moneys owed. they have the power to take you to court but in my experience they give you several options before this happens. phone with a pro active stance on repaying the money, arrange to pay it instalments they usually will respond to this in a good way. If you then continue to not repay the money more sever action will be taken ie courts.. at this time, it seems very scary but if you go to them with the right attitude they are usually very helpful!

I am interviewing for a company who basically does debt collections for mostly medical things. I’m completely new to this business, as you can tell by my lack of understanding of what the company actually does. I would actually be an office aide but I want to impress the interviewer with my knowledge! Any of you who are familiar with what I am talking about have any tips on how to present myself in this kind of work environment?
Hey buddy, I’ll have you know that my sister works for a debt collection agency and she is the nicest person you’d ever meet outside of her job. Not everyone who does their job has no empathy for other people.

You should lack any human compassion and feelings of empathy. If you suffer from such debilitating conditions like the tendency to feel sorry for someone who is down on their luck, or have a medical condition forcing them not to work, or lost their job due to the economy and have to choose between paying their cable bill over feeding their family, then this job is not for you.

Thinks like feelings, emotions and empathy are a sickness, and have no place in debt collection. Prepare yourself for a life of bullying, threatening and scaring people into coughing up their money to you. There are laws and regulations regarding the methods you will undertake in the course of your duties, but you will be instructed to disregard them… if you do your job correctly, your clients will be far too terrified to go to jail than complain about your business practices.

And don’t be swayed if people end up taking their lives because of the constant calls and harassment that you will inflict upon them — it doesn’t matter what petty excuses they have for being in debt "I lost my job", "my child has cancer" or the ever popular, "My bills have grown too much to handle". if they are weak enough to go into debt, they don’t deserve to live. Besides, most people have next of kin you can get their money out of, too.

Just follow my advice, and you’ll be a shoe-in.

Oh, and they run credit checks on prospective employees, too.. So if you are in debt (or have ever been in debt), prepare to be grilled.