What are some things that creditors can’t do according to the "Fair Debt Collection Practices Act"?
they can’t lie about their identity over the phone to complete collection calls.
ok i used my laptop in spain and i got a 1k 800 bill and i dont have the money to pay i have now being passed to a debt collection agency will i go straight to court ?
No, it won’t do. Debt collection agencies prefer not to use the court! Firstly, because it costs them more money up front before they can recover it from you. The main reason though, is that if it goes to court you will only be ordered to pay at a rate you can afford, and this is usually less than they get out out of you themselves. However, they constantly threaten court action as it bullies people into paying.
You will need to ring them up and arrange a payment plan with them. Make sure its at a rate that you can afford because if you break it, then they will take you to court. If you do this and stick to your payment plan then you will have no problem with them.
It will be much better for you if you can avoid court, because if it goes to court it will do much more damage to your credit file. Realisticaly you aren’t going to get out of paying, so its best just biting the bullet and dealing with it.
How can one differentiate between a scam debt collector vs. a real legitimate company?
On the company’s website, it states "a privately owned company that specializes in the collection of delinquent debt"
"a privately held partnership…founding partners remain actively involved and committed to its growth…"
Does that mean that this company purchases past due accounts from its customers in an effort to recover funds?
"divemedic" has some excellent tips on scam vs legit and how to get some dings off your credit report.
I lost my job some years ago and incurred a good deal of credit card debt which ended up going to outside collection agencies. Within the last year I have either paid off or settled all my accounts with the exception of two. However, doing this has not helped my credit score one bit. My question is: what is the incentive for paying off these accounts if it won’t help my score? It’s tempting to just let them sit until 7 years are up and then they’ll drop off.
Actually, you’re correct…the credit scoring system with regards to charged-off credit card debt creates a big disincentive to pay it back. There are people on this board who will tell you that it will help your credit score…but these are the people who work for the collection industry.
There are three reasons that you may want to consider paying back a charged-off account:
1) You are applying for a new mortgage, loan or apartment and the creditor is insisting that all defaulted items be paid off
2) There is a confirmed lawsuit pending on the debt
3) You are applying for a new job where they need to see all defaults paid off.
If none of these apply, then it’s often best to take a "Don’t Ask/Don’t Tell" approach…just sit tight and let the charge-off fall off your credit report naturally in 7 years. The main damage of the charge-off to your credit should be over in 2-3 years.
I lost my job some years ago and incurred a good deal of credit card debt which ended up going to outside collection agencies. Within the last year I have either paid off or settled all my accounts with the exception of two. However, doing this has not helped my credit score one bit. My question is: what is the incentive for paying off these accounts if it won’t help my score? It’s tempting to just let them sit until 7 years are up and then they’ll drop off.
Actually, you’re correct…the credit scoring system with regards to charged-off credit card debt creates a big disincentive to pay it back. There are people on this board who will tell you that it will help your credit score…but these are the people who work for the collection industry.
There are three reasons that you may want to consider paying back a charged-off account:
1) You are applying for a new mortgage, loan or apartment and the creditor is insisting that all defaulted items be paid off
2) There is a confirmed lawsuit pending on the debt
3) You are applying for a new job where they need to see all defaults paid off.
If none of these apply, then it’s often best to take a "Don’t Ask/Don’t Tell" approach…just sit tight and let the charge-off fall off your credit report naturally in 7 years. The main damage of the charge-off to your credit should be over in 2-3 years.
I live in Texas and I am being hounded by a debt collection agency. I do own this debt, but I have not responded to their endless phone calls and text messages. I was told the minute I have any contact with the debt collector this will "Restart the Statute Of Limitations" and this just gives them more time to harass me or file suit.
I ‘m not sure but I think the Statute of Limitations for Credit Debt in the state of Texas is 3 years.
You did not state how old the debt is.. If the debt is close to the statute of limitations, then do nothing.. You can talk to the debt collector, but do not acknowledge or make a payment on the debt, regardless of what the debt collection agency tells you..
Simply having contact with the debt collector does not restart the "clock." In Texas, the statute of is 4 years..
If you have further questions, please send a note..
I live in Texas and I am being hounded by a debt collection agency. I do own this debt, but I have not responded to their endless phone calls and text messages. I was told the minute I have any contact with the debt collector this will "Restart the Statute Of Limitations" and this just gives them more time to harass me or file suit.
I ‘m not sure but I think the Statute of Limitations for Credit Debt in the state of Texas is 3 years.
You did not state how old the debt is.. If the debt is close to the statute of limitations, then do nothing.. You can talk to the debt collector, but do not acknowledge or make a payment on the debt, regardless of what the debt collection agency tells you..
Simply having contact with the debt collector does not restart the "clock." In Texas, the statute of is 4 years..
If you have further questions, please send a note..
If I am sued by a debt collection firm and they have obtained a default judgment against me, and I am willing pay, how can I pay if my account is already frozen? I can’t write checks to them?
Yes I agree with OC1999 I am asking a lot of questions, and want to see what myoptions are. I know I got into this mess. But all I want is to get the best deal with the least amount of hassle.
There is nothing wrong with asking questions. But with all of your questions( I believe you are at about 4 or 5) on having your accounts frozen. Even though you keep saying "IF", it sounds like you have already been sued and have had your bank accounts frozen. It just seems that for some reason you don’t want to give the entire situation.
In all of your questions you keep saying you want to pay it, but at the same time you are coming up with reasons why you can’t/ or don’t want to. Now, in answer to this specific question. If your bank got an order to freeze your account, then there is no need to write them a check. The creditor will take the money directly. If there is not enough in that account they will attach any other account they find until it is paid off.
It might be advisable to consult a lawyer in your area to get information for your exact situation, as there is probably more than you have asked. Most will give you a free short consultation.
Could someone explain what these two questions are asking? And if one had a medical bill debt that was sent to collection and negotiated down, would that cause either to be answered in the affirmative?
Within the past 10 years:
1. Have you made a compromise with creditors, filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition?
2. based upon events that occurred while you exercised control over it, has an organization made a compromise with creditors,
filed a bankruptcy petition or been the subject of an involuntary bankruptcy?
I would construe as asking about formal compromises, approved by a court. I would not construe that question as applying to negotiations that never make it to court. However, it depends on the context in which it is asked.
Could someone explain what these two questions are asking? And if one had a medical bill debt that was sent to collection and negotiated down, would that cause either to be answered in the affirmative?
Within the past 10 years:
1. Have you made a compromise with creditors, filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition?
2. based upon events that occurred while you exercised control over it, has an organization made a compromise with creditors,
filed a bankruptcy petition or been the subject of an involuntary bankruptcy?
I would construe as asking about formal compromises, approved by a court. I would not construe that question as applying to negotiations that never make it to court. However, it depends on the context in which it is asked.