0
Can a collection agency go after you if you do not owe the debt?
Wiki User
∙ 16y ago
Collection agencies go after the wrong people all the time. If they're "going after" you, they probably have reason to believe you owe their client money. If you are an honest person and believe that you truly do NOT owe the debt, get in contact with the agency and let them know WHY you believe that you do not owe the money.You have a right to demand validation of the debt via the 809 letter (its called the 809 letter after the paragraph in the FDCPA that covers it) but you need to request validation in writing within 30 days of receipt of that letter from the agency. Most debts are tied to a social security number. You may want to have a look at your credit report to see if you have become a victim of fraud or identity theft. If either of these have happened you need to act. If you are a victim of identity theftnotify the Federal Trade Commission (via their web site), if a victim of fraud - file a police report. Do not wait. The longer you wait the worse this gets... Either way, face the music and get this solved. Otherwise it will haunt you for a long time...
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
If a bill is sent to a collection agency will it go on your credit report?
Yes it will go on your credit report. It will usually appear as a "charge-off" if it has been sent to a collection agency. ***Typicallly the answer is yes. It really depends on what the subscriber (the own of the debt) chooses to report. They may or may not report the debt to the Credit Reporting Agencies. They usually do, but I've seen it go both ways. If the debt is already on your credit report, get the debt paid in full (try to avoid a "settlement"). Then request (in writing, return receipt requested) that the original creditor report the debt "paid as agreed". This can positively impact your credit score. If consumers would take the initiative to communicate (in writing) with their creditors when they first encounter financial difficulty, the demand for collection agencies and bill collectors would significantly diminish.
In order to pay off your collection accounts who do you contact?
Whomever is sending you the bills ... if the collection agency is sending notices, then contact them. You can also contact a debt counseling agency who will offer (for a fee) to intercede on your behalf and possibly get a lower percentage rate and a lower monthly payment. You then pay them the monthly amount due, then they distribute the funds to where they need to go.
Do you still owe a debt once it is written off and sold to a receivables collection agency?
Yes. But now, instead of the nice guy that called you every month to ask nicely for payments, you will have a professional collector calling much more frequently, and then, if you still don't pay, you can expect collection action. If you have assets, they could be siezed after due process. (The collection agency must go through the courts.) If you have no assets, a judgment will be registered against you personally, which will never go away until you declare bankruptcy, (which sticks like glue for 7 years) or until you pay it off. Either way, your credit will be toast for at least the 7 years, and without declaring bankruptcy, forever.
Why can't you get a detail Billing statement from a collection agency?
You can, but not directly from them. The debt collector is the agent of the original creditor and does not likely have all records of the debt or contract. The collector, as the agent of the creditor can go back to the creditor and request a reconciliation of payments and history, and will in fact be required to so that it van be verified if you notify the collector in writing that the debt is invalid due to payment or some other reason.
When you pay a debt collection agency how do you know who you are actually paying?
An interesting question. It could be that a hospital or department store has got tired of chasing you for money and they have given up on you. THis is called a Charge Off. But there is nothing to stop a debt collection agency from buying up all that bad debt for a nickel on the dollar. After all, Sears already figures you for dead, so it might as well get 5 cents as no cents, right? In that case, the original owner of the debt (let's call them Shears) has already notified Equifax and Transnational, so you don't stand to gain absolutely anything from paying a debt collection agancy anything. They cannot or will not repair your credit. Now, on the other hand it might not have gone that far as a chargeoff. One of our local hospitals tries maybe twice to get a payment from you, then they go to a local agency and make a deal like, these people owe us 100 bucks; if you can collect it, you can keep 25 percent. In a case like that, the hospital or whoever, probably would not go to the trouble of notifying all the Equifaxes of the world. So the first thing you need to do is find out if the original debt has been charged off or not. If not, I think it would be worth your while to try and come up with a paymen t scheme. If they say it has been charged off, ask them for a copy of the letter saying so, then do not pay anything, because paying a bad debt like that will do NOTHING to repair your credit, no matter what the creep on the phone says. CHange your number, get caller ID, and don't put your new number in the phone book. Phil
You owe about 45k on credit card debt and the debt relief agency will not work with you because you have no income what do you do?
Go bankrupt.
What do I do after a collection agency sues me?
Once a collection agency sues a person they may have to get an attorney and go to court to settle this. The agency wants you to pay the money you owe them however they can get you to do it.
How do you start a Debt collection agency?
This is not a question that can be answered quickly. One of the first things that a person needs to do is to determine if owning their own business is right for them. What are the traits of an Entrepeneur, and do they have those traits? The next step will be, if indeed running a business is the right move, is deciding if a debt collection is the right business. Take stock of what starting a debt collection agency entails and what it takes to run it. There are many laws to be familiar with and to be in compliance with in order to run any business and this is true for a debt collection agency as well. Additionally a debt collection agency has laws that are specific to it by state and Federal regulations. The FDCPA is an example of one such law which regulates what a debt collector can and cannot do in attempt to collect a debt. Determining the start up capital and equipment that is needed and how one will secure it is part of the procedure for launching a debt collection agency. If you need to get financing from a bank you will need to have a very good business plan detailed and ready to go. Once you have gotten this far then you need to market your agency to secure clients.
Does attorney fees debt affect credit?
They don't unless you let the debt go and either the attorney or debt colletion agency reports it as part of their collection efforts. If that happens it can seriously damage your credit.
If your bank charged off your bank account and was bought out by another company do you still have to pay?
yes the debt does not go away, the bank simply sold the debt to an outside collection agency.
If several student loans are about to go off the 7-year time of your credit report would making a payment cause the missed payments to stay on there another 7 years?
IMO-most unpaid debts fall off the credit report after seven years FROM THE LAST PAYMENT!!! Ex-If you have not paid down a debt after six yrs then pay 1/3 of the debt yesterday, the 7 yrs begins again as of yesterday. IMO- I believe the 7 yrs may also begin again if the debt is sold to a collection agency because now you owe a different company therefore-new debt. It is illegal for a collection agency to change the date on a debt. It is not a new debt. Agencies that do that violate the fair debt collection practices act.
How do you go to Discovery to see how much a collection agency has paid for a charge off?
The only way you can find this information is if a judge rules the collection agency to release information. A good rule of thumb is 30%. Each time a bad debt changes hands it will decrease by as much as 30% to 75% depending on the age of the debt.
If you owe a telephone bill and are just paying it off little at a time can they send it to a collection agency and go against your credit history?
Yes they can, the original creditor can send it to a collection agency the moment you are considered late by the contract terms or agreement you have with them. Yes a collection agency can report it to the CRA's only if they 1. Notify you in writing and advise you that they are attempting to collect the debt and that you have 30 days to dispute the validity of the debt. (Your Mini Miranda Rights) 2. If you request in writing that they validate the debt which they must do according to your federal rights. But sometimes because so many people aren't aware of there rights the CA's take advantage of consumers and almost always break the law when collecting debts from unsuspecting consumers who have no knowledge of these rights.
What happens if you owe over 10000 dollars to an insurance company due to a judgment?
It's the same as any other unpaid debt. The company may sue you in court which could result in liens or attachments to your property or your wages. They may turn it over to a collection agency for further collections activity. Of course it will almost definitely go on your credit report as a bad unpaid debt.
How does a collection agency go about filing a lawsuit against you?
A collection agency may file a lawsuit against you after they have exhausted attempts to collect the debt through other means. They would typically serve you with a legal notice of the lawsuit, which would specify the debt owed and the court hearing date. It's important to respond to any legal notices promptly and seek legal advice.
Your former insurance co was to have paid the bill five years ago now you are being threatened by a collection agency and this is the first time you have seen the bill?
Before communicating any more with the collection agency, check with the insurance company to see what happened in that case, and/or with the original company they claim you owe. Most companies would have charged off the bill by now, and you owe nothing. The collection agency may have bought the deal for cents on the dollar and the money they collect doesn't go to the original vendor. It won't do you any good to pay this collection agency, since it starts up the payments again. If they continue to threaten, you have rights. Tell them to send you a bill in writing and to stop calling.
Defenses against lawsuit on chargeoff account?
You need to find out your state's statue of limitations. If the debt is old, then you can back sue the collection agency. You can also go to court and reach an agreement.
