What collection agencies and CRA's do, is function on the boarderline of legalities. They violate the consumer protection laws regularly and get away with it. Most people do not have resources available to file a lawsuit. Which is the only thing that will get the attention of the "bullies." The action described here, is simply listed as "updating an account."
Whether or not this action is legal depends on when the account originated, prior to December 1996 or after. The Fair Credit Reporting Act was amended to stop collection agencies from "updating" like this, but legislators had to establish a starting date.
Even if your particular account orignated after the date covered in the FCRA, a collection agency may do this. It has been standard operating procedure for many years. You can dispute the debt, requesting the original date of service or original date of delinquency. Keep in mind that even if your particular debt did originate more than 7 years ago; you still owe the debt (provided it is correct). The statute of limitations applies only to the length of time it can be reported, not collected.
Its a dog that watches stupid
Yes.
No, once a collection agency relinquishes their claim to the account by selling it they must remove all negative trade lines related to that account from your credit reports. Hope this helps ST
No. A collection agency can not freeze your bank account. Only a judge could do that.
Well in Canada they cannot, unless it is a joint bank account or the family member co-signed for the loan.
Is the doctor going to turn the account over to a collection agency? A collection account would hurt your credit. Is the collection agency going to sell the account to another agency, thus extending the time period it shows on your credit report? If they do, it could hurt your credit for an even longer period of time.
The original account with a normal credit company went to a third party collection agency. Only after it went to the collection agency was the debt paid and then the account closed.
No, it is illegal for a collection agency to garnish or freeze your account for any reason. The only way your account can be garnishes is if you owe taxes or child support. If a collection agency threatens to do this, tell them that you are aware of the Credit Reporting Laws on this matter (there is legal ground for this matter).
It is unlikely that the account was "sold" to a collection agency. Rather, the agency was contracted to recover the debt. The "charge off" of the account only affects the original creditor, and represents a loss reported against the company's taxes. If the collection agency has attempted to recover the debt and has been unable to, the original creditor will likely pull back the account and refer it to another agency in hopes of greater success.
It is possible for the collection agency to put a lien on your bank account. Before they can do this, they must go through the proper procedures first.
When a collection agency sells your debt they no longer have any claim to your debt. It's like selling a car, once it is gone it is gone.
== == A Deragatory record is an account that has had a history of late payments. A collection account is an account that was not paid on time or at all, and was closed by the creditor and sold to a collection agency.
Yes - absolutely a debt can be passed from one debt collection agency to another.