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Can debt collectors buy your past loans and sue you for more than they paid?
Wiki User
∙ 12y ago
Yes They Pay A percentage of the original amount and add their own legal fees and interest.
Wiki User
∙ 12y ago
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Is Interest paid to debt collectors tax deductible?
no
Will debt collectors accept a voluntary payment or do they have to garnish wages for defaulted student loans?
In most cases, they'll accept a voluntary payment. Debt collectors buy old debts for pennies on the dollar and then try to collect as much of the original debt as possible. For instance, they may buy an outstanding debt of $5,000 for only $500. Anything they collect over the $500 is profit for them. That's why collectors are often so aggressive and sometimes act illegally. If you do work out an agreeable sum, make sure they issue something in writing that states that it's payment in full for the debt. This will protect you from having them hound you again and it will be proof for the credit bureaus, who will probably report the account incorrectly down the line. In the US, the above answer may be true for private student loans, but not Federally Guaranteed loans. Fed. Guaranteed loans are turned over to federally approved collection agencies that have to follow strict guidelines. The loans are not bought by the collection agencies. Each loan that is "Rehabilitated" or consolidated is paid a fee to the collection agency by the government. Rehabilitated loans are paid a much higher premium to the collection agency than consolidated ones.
How do debtors settle their accounts with retailers?
By paying the total amount that has to be paid back from retailers to debt collectors.
i have 25,000 in card debt and I will pay 400.00 a month until a loan is paid. Is that possible?
Yes but they still may bug you until it is paid off. Pay directly to the card company or you will pay more for fees and interest through the collectors.
How can student debt be paid off?
"Student debt can be paid off in many ways. Once the student is out of school, they can pay off the entire debt at once or they can consolidate and start making payments. If they go into education, some of their loans will be forgiven if they work in ""at risk"" schools and school districts."
If you already paid a debt how do you stop credit collectors from continuing to attempt to collect the debt?
have your recit,send them a copy. Or call who turned the bill in to colectors clear with who sent colector tocolect the paid bill if it is worng most companys will clear the colector account.
Can debt collectors take money out your wages?
They need to get permission, once they have it, they can. An attachment of earnings order is a method by which money will be stopped from a defendant's wages to pay a debt and as such will only help if the defendant is in paid employment. :(
What are some simple tips when dealing with debt recovery agencies?
Debt collectors are always bad news. A useful approach my be credit counseling. These services, paid for by banks, help consumers manage their debts. Never pay for credit counseling. If that is not an option, threaten bankruptcy as this wipes away all unsecured debts, but not student loans, IRS debts, or child support payments.
How much do debt collectors pay for debt?
The income of a debt collector depends on the contract he os she has with the company they work for. Xpress Page worked with a company in the past that paid 50% of the debt collected, that is not too common. But if you are interested in debt collections, check with xpress page. google Xpresspage
What are some drawbacks of same day loans?
Interest rates. Same day loans are small, short-term loans that are meant to be paid back the next day. Interest rates can be as up to 400%, and you may soon find yourself in significantly more debt than what you were loaned, so avoid these if at all possible unless you have no choice.
Why are debt collection agencies calling you?
Usually debt collection agencies only call if you have not paid a bill to one of their clients. Sometimes they come from credit card companies, health care companies, or student loans.
If you have student loans in collections and you now have the money to pay in full is it possible to have the collections company bring the account current as part of the agreement to pay the debt?
once you have paid it. It will reflect on your credit report as paid
