Collection Agencies: Under the Gun From the New Consumer Financial Protection ... SmallCap Network
Collection agency stocks Portfolio Recovery Associates (NASDAQ: PRAA) , Asset Acceptance Capital (NASDAQ: AACC) and Encore Capital Group (NASDAQ: ECPG) have recently been strong performers but there are dark clouds on the horizon coming in the form of Consumer Financial Protection Bureau (CFPB), the 2010 Dodd-Frank financial oversight law and increased government scrutiny of the debt collection industry itself. Specifically, debt collectors and credit reporting agencies are the first industries to be targeted under the new law and by the Consumer Financial Protection Bureau (CFPB) but its worth noting that debt collectors have various business models with some trying to collect on delinquent customers for a fee while others buy debt from lenders and then try to recover what is owed. Of course, there is no shortage of consumer debt out there with the Consumer Financial Protection Bureau (CFPB) estimating that 30 million US consumers being the subject of a collection effort and $1,400 being the average amount sought but the price of debt also impacts those companies who purchases portfolios with the intention of then making a collection. Hence, should investors take a closer look at debt collection stocks Portfolio Recovery Associates (PRAA), Asset Acceptance Capital (AACC) and Encore Capital Group (ECPG) or give the industry a pass? Here is a closer look to help you decide:
UK debt collection agencies and how to handle them
***UPDATE! Sorry if I confused anybody, but the order I would generally go in is to issue the Credit agreement request FIRST, then go down the ...
Cancelled Bally's gym membership - being harassed by debt collection agency?
My boss cancelled a gym membership at Bally's nearly four years ago. Recently a collection agency started calling our office three or four times a day to collect a supposed debt. I've read that California has a statute of limitations on debt, but I'm not sure how it applies to a debt like a cancelled gym membership. Does anyone know how that applies or have any suggestions to get these guys to stop calling and harassing us at our office? My boss does not believe she owes this debt ($500).
Bally's Gym Membership is low because its a 2-3 contract you sign. The contract states if for some reason you were to terminate prior to the end, you would have to pay the remainder or some kind of fees
I would try to find the original contract she signed.
She is very much liable still to pay for this soon, or her credit will be in jeopardy.
You are too nice to your boss. You deserve a raise.
How do you start a debt collection agency in the UK?
Where can i buy debt? Do i need a licence? Ill be grateful for some help!!!!!
You first need to start training a large Rottweiler .. (this will help you "communicate" with the other Debt Collectors in your area who will be very happy to have a nice "chat" with the new competition)
What are the steps needed to do a pay for deletion debt settlement with a collection agency?
The accounts are all medical and over 2 yrs. old. Also if I send a pay for deletion letter can the collection agency start the statue of limitations over because of the letter?
Send them a letter that states that you will pay them and in return they will close the account, remove it from your CR, and not pass it on or pursue you on it in the future.
Make sure theres a place for them and you to sign.
Send it out and wait for it to come back.
:edit: However if these items are outside of SOL then you wouldn't want to Pay for Delete.
And no it will not restart the statute of limitations (SOL).
:edit: The guy below me has no idea what he's talking about. Do not pay someone to fix this problem for your. It really isn't that hard to do yourself. And YES there is such a thing as SOL on consumer debt in EVERY STATE. He may mean that indeed the debt will never die, however the ability for the Collection agency (CA) to legally collect on said debt is impossible. Yes they can trick you into it but you have all the legal rights to tell them to 'get bent'. And they can not report it on your Credit Report and if they do you can use validation techniques to get it off there.
:edit2: Indeed the fact that it can't stay on your report any more than 7 years does not mean that you can't Pay for Delete (PFD), in fact I'm sure the credit industry would not like you to know that in fact you CAN get it removed from your credit report. Someone put it on your credit report and yes someone can take it back off. This tactic is much harder as they may not agree unless they know there is no other way they will get their dough.
However another little trick would be to get in writing that they will NOT validate if you ask for validation from the Credit Reporting Agency's (ie Transunion, Equifax...). If they do not validate then it can't be on your Credit report as it's not legit.
Then again it's always hard to get them to hold up to their word - but that's what lawsuites are for.
Go here: www.lexingtonlaw.com and understand your rights. Sign-up with them and they will fix all of your credit issues.
Don't listen to collection company rhetoric.
Write me a personal message if you ever have questions like this again. kenneth_knapp @ yahoo .com
KK
If you have an account in collections and you pay the balance or settle for less than the full balance, the credit bureaus are required to show that debt as "paid" or "settled" on your report. It is not up to the collection agency to report that. Most of the time they do, but if they don't, it's up to us as consumers to get a receipt from the collection agency and then follow up with the credit bureau. Do not pay a "removal" fee. Just pay the debt and use a .39 cent stamp to get things updated.
I hope that helps.
My brother has a debt with a debt collection agency?
His debt started at $4700 2 years ago and is now down to $1280. They contacted him today to tell him that there has been a problem with their computer system and they should have been charging him interest all this time. They have given him the option to clear the remaining amount by next Thursday, but if he is unable to do so, there will be an additional $1000 added to his debt. Can they do this? Who might he need to contact to find out his rights in this situation?
Try to review the Promissory Note your brother executed in behalf of the lending company and make an honest computation based on the re-payments. This will serve as a reconciliatory file against the company records which are claiming for an error. The other way of solving this is look for the demand letters sent to you and insist that the last balance indicated therein is the actual amount due. If you still need other info, contact me. rtsavellano@yahoo.com. by the way, I am Richard T. Savellano, a Credit Collection and Documentation Specialist. Had contracts with various Law Offices, Distribution Companies, International and Local Finance companies and some private entities.
original date of the debt, is it past the statute of limitations?
Tell them to explain and show you how they came up
with what you say they owe them. Why do you owe them?
You didn't sign a contract with them to collect the debt.
You don't dispute you owe the money, you dispute that
why do you owe them the money? If they bought the
debt you didn't tell them to buy the debt
creditinfocenter com
report them to the state attorney general of where they are located and the federal trade commission
also look on buddhibbs com
All credit cards have default interest rate that is allowed to be charged until the account is paid in full. If the terms and conditions allow the agency to charge that much interest/or if state law allows that much to be charged then they are allowed to do so. I would suggest contacting the agency and speaking with an operations manager, or floor manager to work something out. It may not be fair, but there isnt anything in the FDCPA that would be violated.
if a collection agency with an old(8+yrs)debt receives info from a refinancing co because of an online inquir
online,a co named lead point offers to match peiple to refinancing lenders.if one of the lenderss gives info to a debt collection agency with an old(8+yrs)debt & the collec..agency starts calling from several offices...what can be done legally
It sounds like you owe this bill, so it needs to be paid. If you are refinancing and getting cash back from that, or consolidating bills, make sure you include this one. You can also look into bankruptcy. It's a lot harder to file now than it was a few years ago though.
Remember, it's not harassment for a company to contact you about money you owe them.
I can explain what happened - you filled out on online app - this company inputed your latest information like address, phone #, possibly job - your old collector pulled your credit and now has this new updated info - nothing can be done about that
When I run a credit check on a client who wants to refinance, the bureaus sell my client's info to competing lenders based on the fact that I just paid them money to inquire about the client's credit for a refinance. They take my lead and sell it to my competitors, and there's nothing I can do about it.
It could be that your collection agency has paid the bureaus a fee to monitor their collection accounts, and if someone inquires about a refinance, they sell that info to the collection agency. That agency now knows that you are about to refinance, so it's a perfect time to start pounding you about getting paid, since there's money moving around, and most mortgage companies will require you to pay off open collections at closing.
You could file a complaint with the FTC at www.ftc.gov.
The credit bureaus are behaving as a criminal cartel, in my opinion, in offering these types of leads. I have no choice but to buy my credit reports from them, and as of today, I have no ability to stop them from selling MY lead to my competition.
How long can a collection agency sit on a debt before they start to collect?
I HAVE A COLLECTION AGENCY THAT HAS HAD A DEBT OF MINE SINCE 2002 AND JUST NOW REPORTED ME AND TRYING TO COLLECT. THE ORIGINAL CREDITOR NEVER CONTACTED US TO COLLECT ON THE DEBT EITHER. SO THIS HAS BEEN SITTING OUT THERE SINCE 2001. ITS A HOSPITAL BILL
I actually work for a medical collection agency. In most cases, the agency will first send you a series of letters letting you know your rights. They will then try to contact you by phone, usually 5-8 attempts. There must be some reason they have been sitting on this so long. Were they trying to deal with your insurance? They also might have been doing a legal check on you to see if they should pursue the account legally. They really haven't done anything wrong and the original provider doesn't have to bill you. Also, was there a problem with your address? Anyway, in most states the statute of limitations(SOL) is 6 years on a medical debt. If they don't sue you, then you're fine. If they did report it to the credit bureau then it will only be on there for another two years. (7 years from the date of service)
Can a debt collection agency sue me if I am making payments. ?
The debt started @ 365. 4 years ago. Now its up to 1500. So i started just making 50 dollar payment every month. until tax time and was going to pay it off. This agency call me every day and threatened to sue me and report me to the county. I have only made two payments but I haven't ignored it. They want more and they cannot get it right now but I will pay it off but they are still harassing me and won't stop. Now it is My debt but how can they sue me and I am at least paying something
I would imagine that you are what is known in the legal field as judgment proof. If the credit card company, or whoever you owe the money to, thought you had any way of paying them off, they would sue you themselves. Since you don't have anything they can get such as a large sum of cash in the bank all they would get would be the satisfaction of a judgment and more legal expenses.
One person said that your wages could be garnished, that's not true unless you owe the money to the IRS or someone like that.
They sell your debt to a collection company and they hound you for money, if they collect, good, if they don't, oh well. They aren't going to sue you for the same reason that the original people won't because all they would get would be attorney fee's and the satisfaction of a judgment that they can't collect.
If they call you more than once a day or call you at work, call a lawyer and they might have to pay you.
I would simply tell them you entered into no contract with them and to get lost. It sounds like you need to contact the credit card company and see if you can't work out a deal to drop some penalty's and interest fees, 9 times out of 10 they will, they figure something is better than nothing but never deal with a collection agency, they can't speak for the original person you owe the money to.
why would a debt collection agency hassle you then stop for 2 years and then suddenly start up again ?
Why can collection agencies buy other bad debt, start collecting against you, although you have no contract?
There is a new thing going around where collection agencies are buying debts not collected by the original agency. where is this generated from, how are they doing it, and do i have an obligation to pay although they are not a party to the original debt?
its legal as the contract is in default the parties have broken faith and now the debt is subject to any collection methoed available under the law but charge cards can sell debts also and outside the home state that way the judgements can be gotten against you where you cant fight them and garnisnments and liens also so thats nasty
I have a letter from a debt collection agency. What does it mean?
I owe a credit card company £3400, Ive had the card for just under a year, unfortunately due to personal circumstances I am unable to pay the credit card company the contractual monthly payments. I have tried to set up a payment arrangement (the amount I can afford at the moment) but my offers have been declined. The collection agents have been sending me threatening letter in regards to statutory bankruptcy demands and now they have said 'they will recommend the credit card company to start court proceedings with a view to securing their claim by way of a charge over my property' - What does this mean exactly - what is a charge over my property and how will this effect me? Any advise would be greatly appreciated.
Go to citizens advice .If you still have a morgage on your property they cannot touch it.They can county court you were you can explain your circumstances usually the court gives you a fixed amount to pay monthly.Sounds to me has if the collection agengy are using the bully boy tactics.Its the first time I have heard of a charge over a property.Please go to citizens advice its free & they will help you all they can,Good Luck
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