Beware of dubious debt collectors ENC Today
Most people would rather not get calls from debt collectors. But what do you do if someone keeps hounding you about a debt that you don’t even owe?
Dozens of North Carolinians have recently reported getting threatening calls from scammers posing as debt collectors. The callers often use fake names designed to sound like a law firm or government or law enforcement agency, such as the “Federal State Bureau of North Carolina” to try to intimidate consumers into paying the phony debts.
In other cases, a legitimate collection agency may try to collect on a debt taken out in your name without your permission. This can mean you’ve been the victim of identity theft, when criminals steal your personal information and use it to run up debts in your name.
If you get calls demanding that you pay debts you don’t owe, keep the following tips in mind:
Never give out your personal information, such as bank account and credit cardDave Ramsey - Credit Card/Debt Collectors are SCUM
My hero, Dave Ramsey, tells of abusive practices and the violation of Federal law incorporated by debt collectors - particularly credit card debt ...
Bankruptcy question on written off credit card debt and collection agency?
Have to file bankruptcy. Been out of work for 6 months. Two credit cards have been written off but amount, I guess, has been turned over to a collection agency. When I file for bankruptcy do I just list the bank or just the collection agency? Can the collection agency garnish my wages if I obtain employment? Thanks.
List them both.
Filing for bankruptcy will stop any judgements to garnish your wages.
I have a Credit Card debt with a collection agency, can I request a signed copy of the contract before paying?
I have a Credit Card debt with a collection agency, can I request a signed copy of the contract before paying? Do they have to provide me with a copy? I am of understanding such documents should be kept for 7 years legally. I have requested this information and they have provided me with everything but the information I have requested - a signed contract?
Many Thanks in advance.....
they hate you
http://www.creditinfocenter.com/rebuild/debt_validation.shtml
If you do not get this written agreement, there would be nothing to stop the collection agency from coming after you for the remaining amount that was not settled...or selling the account to another collection agency. Verbal promises about settlements are meaningless and can't be proven.
Do you really doubt that you owe this money? Or are you just trying to make them jump through hoops and stall? A collection agency can be easy to deal with or they can be hard. If you are harassing them with frivolous requests for documentation they have ways they can get even.
My firm handles these types of lawsuits so if you have any further questions feel free to email me
The problem is what constitutes proper validation. There is a lot of case law involving this, but from what I have researched it will end up being at the discretion of the judge.
In one example, the creditor won. He didn't have the contract, but he had copies of checks signed by the defendant paying past bills.
In some states, the law specifically demands that a signed contact be entered in to evidence.
So to answer your question...don't know. Are you trying to get this from a collection agency? What state do you live in?
If this is tried in small claims court they do very heavily on preponderance of the law....meaning if there is enough evidence to show you owe the debt, they may win. This is where you hire an attorney experienced in consumer law, and who understands your local court rules.
Good luck. But either way....SEND THE VALIDATION DEMAND LETTER!
My debt to a credit card institution has been transferred to a debt collection agency recently?
Does this mean that i'm now listed as a bad credit person? if i come to an agreement with the collection agency to pay my debt back in instalments, will my credit rate be ok then?
When you call don't offer them anything! ask them what your options are. Be nice when their done ask them what other options do I have, and then one more time ask and your company has no other options and has never made arrangement for special situations?
Then you ask for all of their contact information (address 800#, and Fax) Ask as many questions as you can think of, keep control of the conversation. If you ever loose control tell them thank you for your time and hang up the phone. Never agree to anything unless you know your able to do it.
Send this letter only if the CA/OC has agreed prior and you are in agreement to settle.
Creditor/CA
City, State, Zip
Re: Account Number | Debtor Name:
Dear Sirs:
This letter is to confirm our telephone conversation on (date) regarding the settlement of the above account. As discussed, I will pay your company the amount of $______ as full and final settlement of this account. Per our agreement, I will send you a money order or certified cashiers check for the settlement amount in exchange for a satisfactory credit rating and full satisfaction of the debt.
This agreement is binding and will be void should you not hold up your end of the agreement. Furthermore, the debt will be rated as we agreed (list agreement, either current or if collection account- deleted) to all three credit bureaus or the bureaus your company regularly reports to in the course of doing business.
If you agree to the above, please acknowledge with your signature and return a copy to me. Upon receipt of this signed acknowledgment, I will promptly send you a money order or cashiers check in the amount stated above.
Notice: This agreement is restricted. By not signing below you void this offer. This agreement is a binding accord and satisfaction if both parties meet said terms.
Credit bureaus you report to: _______________________
Creditors Position or Title: _____________________________
Creditor’s Authorized Signature: _____________________________
Date: ____________
Do not sign or date.
back to your question. Yes - I AM ABOUT 99% sure it will go on your record for atleast 2 or 3 years since it went to collection. Possibly even seven.
Good question. Unfortunately they don't teach us this stuff in school. I've personally learned the hard way and have been in the credit & debt industry for over seven years since. Here's what I know that may help you:
If your account went to a debt collection agency, then yes, you are now listed as "a bad credit person".
Here's why...
Your account must have gone past due. When you go 30 days past due, then you get a "30 day late" entry on your credit report. This is a "derogatory" and damages your payment history, affecting your credit rating.
If you've NEVER been late before, then having a new late payment would have a severe negative effect. The first late payment has the most damaging effect. However, if you already have late payments (especially recently) and have "taken the hit", then the effect of additional late payments is more minimal.
Such negative items will stay on your credit report for seven years unless disputed and removed. As time goes by, especially after a couple of years, the negative effect will lessen.
As the account continues to be late, you get 60 and 90 day late payments on your credit report. Sometimes you'll see it go 120 days late.
Then, usually after 180 days past due, creditors will "charge off" the account. A "charge off" is an accounting term meaning the creditor will take a tax benefit. This devalues the account. Usually creditors then sell the accounts to debt collection agencies (For an average of $.034 per dollar in 2006 - Keep that in mind when negotiating a pay off amount).
BE SURE to get any agreement in writing before making any payment. Do not agree to a check by phone. Remember: Documentation beat s conversation, every time.
Paying off the account should improve your credit worthiness by lowering your debt-to-income ratio, eliminating the past due account and clearing up any utilization issues if the account balance was over half of the limit. However, the negative items from the late payments will remain.
Once the debt is paid to a zero balance, you are likely to have success with "credit repair" to remove the negative items to make you credit rating OK again.
Credit repair is basically using the law and your rights from the Fair Credit Reporting Act (FCRA) to force the credit bureaus and / or creditors to verify and / or validate the negative information reported on your credit report within 30 days, or they must “delete” the negative information.
Now if you owe money on a debt, then the creditors etc will do the work to verify and validate the information in order to maintain their leverage on you to collect.
This is why eliminating the debt is step #1.
Once the debt is paid to a zero balance, then there is no incentive for the creditors to verify or validate the negative information they are reporting. Thus it becomes economically better for them to simple delete the negative information.
You can do “credit repair” yourself, or you can have a professional do it for you.
Here is the actual FCRA: http://www.ftc.gov/os/statutes/031224fcra.pdf
There's also more to your credit score vs. your credit worthiness than I have time to type out here. Learn "How Credit Works" and more info about credit repair below.
I hope this helps you Tina.
Thanks and have a great day!
There is a lot if info about saving money and consolidating debt at:
moneysaving08.googlepages.com
The ads on the page have info about raising you credit score and managing credit card debt and collections. maybe you'd want to check it out. good luck!
Can a collection agency report a bad credit card debt if they do not have written records?
I was contacted by collection agency an account that was charged off 8 years ago. They said they bought that debt and are reporting it on my credit.
I asked for written records with my signature to ensure that it was a real account that I opened. They said that it had been validated by the orginal credit card company, but they could not supply any records with my signature.
Can I have that removed if there are no records with signatures showing that I ever opened that account?
Since it is a credit card debt and it was charged off 8 years ago, the collection agency is violating your rights by reporting it.
A credit card can only be reported for 7 years from the first time you became 30 days late and never brought the account current leading to the charge off. It cannot be re-aged to report for a longer period.
I would suggest doing "everything" in writing and sent certified mail return receipt - create a paper trail to use should you decide to sue the collection agency.
Order your paid reports.
Send the collection agency a debt validation letter. Do not sign the letter, print your initials or type your name.
When you get the green card back, file disputes with the CRA's.
If the account is verified instead of being removed, file complaints with the BBB, FTC, your AG and the collection agencies AG.
If the account remains, sue the collector for their violations.
Chances are pretty good that you are past the collecting SOL for your state. Though you might click on my profile and click on the link listed to find the SOL for your state.
If you are past the collecting SOL, after you do the above steps, you should send the collector a SOL letter.
You might do some reading in the other links I have listed in my profile, to the FDCPA, FCRA and also the last link listed.
(get records, signatures, whatever they need to prove it's your debt). If not it has to be removed
Step 1: Get copy of credit report (call or get online) I prefer calling if you go online they give you all kinds of "trick questions" to answer to prove your identity and this is a longer process
Step 2: Find the item and dispute it online (you can write and mail but this will take longer)
Step 3: Wait (the credit bureau will notify email when you can review your corrected credit report) This will show either it being removed or how they determined you really owed the money.
Step 4: Print a copy for your records and just to verify order a copy a year after the current report unless you want to pay.
I recommend doing it this way I disputed 2 items and they were removed with 2 weeks!!!!!!!!
Send the collection agency a debt validation letter and dispute the account with the credit bureaus.
For some sample letters, check out the site below:
I have a credit card debt collection agency trying to take my 1993 Toyota to cover a small debt of $1,500?
I have no job and my only source of income is Social Security disability. I have 4 kids, too. Because of a credit card debt of about $1,500, a collection agency here in NJ is threatening to take my old Toyota to cover the debt, because they cannot find money under my name. Can they do this?
Can I register my car under my wife's name, even though she has no Driver License?
It would be registered under her name, but I will be the driver.
I am trying to hide my car from the collection agency by registering it under my wife's name.
I was told by a lawyer that the collection agency won't bother to go for a car that old. It wouldn't be cost effective.
However, I have heard some scary stories about people whose old cars have been seized by unscrupulous collection agencies and auctioned. Man, I need my car so badly I would shoot someone for it.
Any ideas? Anyone?
First off, try reading on the "Federal Fair Debt Collection Practices Act" and know your rights. They will try to bully you and the info in that law will help you tremendously
Some points in the law that may be able to help you:
a) They cannot call you at ungodly hours
b) They cannot threaten to garnish wages or take anything you owe until AFTER they have sued you. This car is not attached to your debt (its different from the horror stories you hear that people REPO the car -- it cant be repo'ed if its yours free and clear, they have to attach it AFTER they sue you when they win the lawsuit)
If they do anything above, you can file a complaint with them with the FTC or your state's attorney general. Record your conversations and turn the tapes over the attorney general! Fight back you have rights.
Good Luck
I hate to say it, but if this agency is threatening this the first thing you should do is contact the agency manager, or owner and advise them that under the FDCPA (Fair Debt Collections Practices Act) these threats are not permitted and are illegal. The worst thing they can do is file for a judgment. if they do, just show up in court and tell the judge the truth about your situation. Even if the judgment was enforced, meaning the judge approved it, they could not force you to sell you car or home. It might make it tougher to buy a new one, but it doesn't' sound like that is really an option at this time anyway. try to work something out with the original creditor if you do not want to call the agency. You have the right to ask to only speak to the original creditor and I would let them know the threats that are being made against you. As a former owner of a collection agency I am sure it is not a common practice at this agency to do this, but more likely a few unscrupulous collectors trying to push to hard and breaking the law in the process. document your conversations with dates and times as well as the threats being made and contact the original creditor and the collection agency with your notes and ask them to try and work with you.
I would suggest you call the credit card company and negotiate the interest rate and balance. If you explain you are on limited income through disability and have minors living in the home they might be willing to work with you. The alternative would be to file a bankruptcy which then they won't see a dime.
Don't let them use scare tactics or push you around. I think they are just fluffing their feathers more than anything and if you try to work it out they should be willing.
Use this letter to demand that a collection agency stop calling or writing you. The cease and desist is one of your rights under the FDCPA- Fair Debt Collection Practices Act.
Name Of Creditor
Address
City, State, Zip
Re: Account Number
Date
Dear creditor/collector,
This letter is to formally advise you that I am requesting you to cease and desist all communications with me immediately regarding the above account. As a third party debt collector- that is- not the original creditor, you must comply. Your conduct thus far is unacceptable and borders on harassment. Please be advised that the following applies to you.
Pursuant to the Fair Debt Collection Practices Act:
Debt Collection Practices
If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt.
You are governed by this Act as a third party debt collector or creditor attorney. All communication with me including phone calls to my home or business must stop immediately.
If you continue to contact me after receiving this dated certified mailing, you will be in violation and I will file a complaint with the Federal Trade Commission and State Attorney General's Office.
Sincerely,
Your name
Address
Signing off assets and things you own to other people will not shield them from the court. Nor will selling them to other people. I would suggest that you DO NOT do this because it could have grave consequences in you do lose a court case.
That being sad, the collection agency is just trying to scare you into paying. When and if you lose a judgment in court, you are guaranteed exemptions - that is, things that you can protect from being taken or sold. This is a right afforded to everyone in our country. I don't know what the NJ exemptions are, but in NC you're allowed a particular value in your motor vehicle (I think $1500?). I'm not sure what it is in NJ. Find out what the exemption in NJ is by checking the state statutes.
Also, I doubt that your old car could fetch $1500 even if you sold it privately. It's simply a scare tactic designed to prompt you into paying and avoiding the court. Court costs can be expensive, the collection agency is hoping that you'll pay or give in so that they won't have to hire lawyers to sue you and take you to court.
Remember that court cases take ages to go through the court. You have to be served, file your answer, discovery, go to the court...the process can take years if you drag it out. The point is...no matter what the collection agency says, they can't take anything you own unless a court says they can.
Social security is typically protected from garnishment and judgments.
This collection agency is trying to squeeze money out of you because they think that they can bully you around. Stop answering the phone when they call. Write them a cease and desist letter. If they want your old car so badly, make them work for it. They'll be luckily to recoup their costs in court let alone ever see that $1500 they want.
Good luck
PS: If the debt is old, has it passed the statute of limitations? If so, then they are really just blowing smoke and have no legal basis whatsoever
I think you should contact a credit card counseling agency they would talk with them on your behalf and would make settlements as they have contacts with most of the creditors. Here is the reliable source for your reference http://ezconsolidation.com
bad credit card debt, sold to another collection agency. How long until goes away?
I was one of those dumb 18 year olds who accepted every credit card offer that came in the mail. I have all paid off now accept one. It went to collections in 2002 and was recently sold to another collection agency. I understand that after 7 years your debt is sopposed to go off your credit report. Now that this debt was sold does the 7 years start over or will my 7 years be over next year?
The 7 year reporting period begins from the date of delinquency. NOTHING can reset this 7 year clock. If you missed a payment on 1/1/2000 and never brought the account current, the negative mark must be removed 1/1/2007.
If this went to collections in 2002, it will come off your report this year or next, depending on when you actually became delinquent.
Can a collection agency buy my debt from a credit card company I owed over 12 years ago?
When I was 18 I got a credit card and went over the limit and owed $1000. I never paid it back and it was even dropped from my credit report. All of the sudden I get a letter from a collection agency saying that they brought my debt and that I owed $2,300. Is it legal for them to buy my debt and do I still need to pay the money back? I currently have nothing on my credit report which I checked 6 months ago. What should I do?
Shorty needs to do some research before answering questions here....
Start by looking at the link I supplied below. Every state has a "statute of limitations" in which after a certain amount of time has passed, you no longer have a legal obligation to pay the debt. The creditor/collection agent must file a lawsuit before this time runs out, or they are out of luck.
So why would a collection agent spend money buying an account they can't collect on? Because they are counting on the fact that most consumers do not know the law, and don't understand their rights. They are gambling on it, and many times they scare the debtor into actually paying the debt.
Just because the SOL has run out does not prevent a collector from attempting to collect a debt. They just no longer have a legal way to collect..they can't sue you. But they can harass you! But you can put a quick stop to that by sending them a "cease and desist" letter. Once they get it, if they continue to bother you they risk a $1000 lawsuit from you for violating the FDCA laws.
So read the links below, know your rights, and tell the collection agent to buzz off!
can two different collection agency's collect on the same credit card debt?
I have an old credit card debt (2001) and two different collection agency's are trying to collect on it. One put a lien on my house and the other garnished my wages Do they both have the write to collect on the same debt?
NO
Only the current owner/assignee of the debt can collect on it.
One of them is in violation - big time.
If the collection agency, that sued you, sold the account to another collection agency, then the first collection agency has no further rights in trying to collect.
Order your credit reports to see if both are reporting.
Go to your county court clerk and request a complete copy of the case file.
You should send a debt validation letter to both collection agents to find out which one has the legal right to collect.
Send the letters certified mail return receipt.
I think your best route would be to take copies all of the info you have, reponses from the collectors to your DV, case file, credit reports, letters, etc., and speak with an attorney (that is well versed in consumer laws)
Many atty's will give a free first consult, be sure and ask about that when you call about an appointment.
Can a debt collection agency sue you for owing 840$ to a credit card company?
About 4 years ago I got a credit card from Aspire visa and the apr on it was like 25% so of course I couldn't pay it off and it ended up in a collection agency called MCM. A lady contacted me saying if I don't pay off this 840$ then it will be forwarded to their attorneys office and I will have to go to court is this true? What can happen if it isn't paid off?
Debt collection agencies routinely buy old debt (often past the statute of limitations - it's as little as 3 years in some states!) for pennies on the dollar and turn around and sue hoping for default judgement which grants them the right to garnish wages and freeze your checking/savings accounts.
It often takes a long time to get that point, but you want to avoid a lawsuit obviously. It seems like a small amount to sue over. I would send them a settlement letter. Offer to pay maybe 45% of what you owe, tell them you'll send them a cashier's check (never send a personal check, you don't want them to know where you bank and your account numbers!) within 10 days if they accept your offer. ALWAYS communicate in writing, never over the phone, and DON'T ADMIT OWING THE DEBT, only tell them that you'd like this settled as you want to protect your credit integrity.
If you can't afford to settle, you can try the DEBT VALIDATION route where you request all sorts of documentation from them that proves you owe the debt. Many of these third-party debt buyers receive minimal information and can't provide copies of statements, original contracts, etc. and will often drop your file once you start demanding documentation and asserting your rights. Good luck! You can read more about junk debt buyers at http://www.howtoansweracreditcarddebtlawsuit.com
Credit Card Debt and Collection Agencies?
I'm a 29 year old teacher. I've accumulated about $7900 in credit card debt since I was in college. I cut up my credit cards about three years ago & have been paying on the balances, but card I fell 9 months behind. The minimum payment was over 200 a month and on a teacher's salary, I just could not make it. They'd send me settlement deals, but I didn't even have money to settle. I'd send them periodic payments to try to show them I was at least trying. Now, they've sent my account to a Debt Collection Agency. The collection agency seems to want me to come up with the entire amount or file bankrupcy. Is there any way I can get a big debt collection company to work with me on small payments until I can get ahead? I recently took a part time job to give me extra income to work with. I don't want file bankrupcy @ this age and it is the only marr on my credit report. How can I get them to give me repayment options in writing? They want me to do everything over the phone. Help!
The lame teacher's excuse, is not an excuse. In the state of Montana, a beginning teacher's salary is barely $25,000 a year and with student loans, a rent payment, insurance, etc., at the end of the month I have maybe $20 left over.
Also, I have tried debt consolidation and because I work "$15-$20" in the red each month, they would not take me.
You should see if you can get another credit card with an introductory rate of 0%. You will save so much money if you get out of the interest-payment vicious cycle.
The 0% may be able to give you a check to write to pay off the collection agency ($8000 is possible, but not necessarily likely).
Do yourself a favor and check out this book on Credit arbitrage: http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2Fgp%2Fproduct%2F1600200419&tag=thestateofart-20&linkCode=ur2&camp=1789&creative=9325 - good stuff
Good luck!
agency card collection credit debt - News
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You can make debt collectors play by the rules Sun-Sentinel.com You can make debt collectors play by the rulesSun-Sentinel.com, FLThe Illinois attorney general's office, which has seen an increase in consumer complaints about debt collection, filed a lawsuit last month against a Florida-based collections agency for a number of alleged offenses. Among the complaints, the company |
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Debtadviser: Collection firms can still demand old debt Scripps News Debtadviser: Collection firms can still demand old debtScripps News, DCBy STEVE BUCCI, bankrate.com I just received a court docket number for an old credit-card debt. If I am correct, the account was closed in February 2003. The collection agency is suing me for $15000, which is what I owed. |
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EFA Processing Honored as a Leading Provider by Forbes Magazine InsideARM EFA Processing Honored as a Leading Provider by Forbes MagazineInsideARM, MDAfter just its first full year of operations, the Company services roughly 20000 consumers in the United States addressing more than half a billion dollars in debt, largely owed to credit card companies. EFA is a member of the United States |
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Ex-councilman guilty of embezzlement Press-Enterprise Ex-councilman guilty of embezzlementPress-Enterprise, CASuzanne Kessler also used the card to pay a $2000 debt to a Pennsylvania collection agency. The Kesslers paid back the money, and Frank Kessler told Canyon Lake officials he mistook the card for one of his personal credit cards. |
WHEN COLLECTORS CALL Buffalo News
Daily MirrorWHEN COLLECTORS CALLBuffalo News, United StatesAdam Wisniewski of Niagara Falls didn’t even know that a collector was after him until he went to the bank and his ATM card wouldn’t work. It turned out that a collection lawyer had obtained a judgment against him for a credit card debt that wasn’t How to avoid getting hooked by debt-reduction schemes When debt management plan can help
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