Harassment Debt Collection
Unfortunately debt collectors are often less than ethical. This has caused the government to pass legislation to protect you from unethical collection methods.
If the debt you are being contacted about is accurate then you should ask for debt validation. We suggest you do this in writing.
If you neglect to do this and ask for validation over the phone 99% of the time it will be completely ignored. Additionally send it certified mail so you have proof that they received your validation letter.
If your debt is validated and it is within the statute of limitations of your state then you can negotiate payments. Limitations are often seven years from the date of delinquency.
When negotiating a settlement payment you should never pay the full amount. This is because your account has been bought from the original creditor for just pennies on the dollar. We suggest you start your settlement offer at 50% of the balance.
The agencies will always accept partial payment. This is because there only way to recoup the money they spent on your account is by accepting your payment or selling it for a fraction of what they paid for it to another agency.
When you and the agency agree on a settlement payment you must get in writing from them that in exchange for your payment they will not report any negative information to the bureaus. If you fail to do this you will stop the phone call but you will have a whole new set of problems because of a damaged credit score.
If you just pay the debt it will be recorded as a paid collection. This is still a derogatory mark on your credit and will not improve your score.
Again, you should get in writing that negative information is not going to be reported to your credit. Occasionally derogatory information has already been reported you should get them to agree to delete it from your report.
If you do not do this there is zero benefit from paying the collection. Additionally always pay with a paper check. FYI, you can actually use the memo line to repeat the contract regarding reporting to the bureaus, then when the check is cashed you will have a binding contract.
If you are being harassed by a debt collector you are not alone. They only can legally do so much. The Fair Debt Collections Practices Act says that a debt collector can not;
- Threaten legal action (arrest, jail)
- Constant harassing calls
- Call your job (once asked not to)
- Claim to be anyone they are not
- Threaten to file a lawsuit (unless they are taking legal action)
- Threaten to garnish wages or seize property (each state is specific about what is legal, often a court order is needed)
- Call your neighbors or family members and speak with them about your debt
- Only call between 8am and 9 pm
- Call you after you have notified them that you will not accept calls regarding this debt.
Unfortunately these regulations are often ignored. If you have been a victim you should report the agency to the FTC and the Attorney General. Many collection agencies have been fined because of violation of the FDCPA.
Additionally you can sue the agency and be awarded money damages. Make sure to keep all your communications in writing that way you can prove they are in violation.
If the debt you are being contacted about is accurate then you should ask for debt validation. We suggest you do this in writing.
If you neglect to do this and ask for validation over the phone 99% of the time it will be completely ignored. Additionally send it certified mail so you have proof that they received your validation letter.
If your debt is validated and it is within the statute of limitations of your state then you can negotiate payments. Limitations are often seven years from the date of delinquency.
When negotiating a settlement payment you should never pay the full amount. This is because your account has been bought from the original creditor for just pennies on the dollar. We suggest you start your settlement offer at 50% of the balance.
The agencies will always accept partial payment. This is because there only way to recoup the money they spent on your account is by accepting your payment or selling it for a fraction of what they paid for it to another agency.
When you and the agency agree on a settlement payment you must get in writing from them that in exchange for your payment they will not report any negative information to the bureaus. If you fail to do this you will stop the phone call but you will have a whole new set of problems because of a damaged credit score.
If you just pay the debt it will be recorded as a paid collection. This is still a derogatory mark on your credit and will not improve your score.
Again, you should get in writing that negative information is not going to be reported to your credit. Occasionally derogatory information has already been reported you should get them to agree to delete it from your report.
If you do not do this there is zero benefit from paying the collection. Additionally always pay with a paper check. FYI, you can actually use the memo line to repeat the contract regarding reporting to the bureaus, then when the check is cashed you will have a binding contract.
If you are being harassed by a debt collector you are not alone. They only can legally do so much. The Fair Debt Collections Practices Act says that a debt collector can not;
- Threaten legal action (arrest, jail)
- Constant harassing calls
- Call your job (once asked not to)
- Claim to be anyone they are not
- Threaten to file a lawsuit (unless they are taking legal action)
- Threaten to garnish wages or seize property (each state is specific about what is legal, often a court order is needed)
- Call your neighbors or family members and speak with them about your debt
- Only call between 8am and 9 pm
- Call you after you have notified them that you will not accept calls regarding this debt.
Unfortunately these regulations are often ignored. If you have been a victim you should report the agency to the FTC and the Attorney General. Many collection agencies have been fined because of violation of the FDCPA.
Additionally you can sue the agency and be awarded money damages. Make sure to keep all your communications in writing that way you can prove they are in violation.
About the Author:
For a free credit consultation call 1-866-246-7311. Additionally you can get free Credit Repair Letters used to dispute negative information or a free credit repair e-book by visiting us.
posted by Credit Counseling at
8:35 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home