0
If you are trying to clear up your debt do you pay the collection agency or the original business you owe to and have them try to buy back your debt?
Wiki User
∙ 8y ago
Your main consideration is that your credit report should be at its most favorable. Therefore, whomever you contact, make sure you get in writing that you will pay the debt and, in exchange, you expect the debt to be removed from your report, or at least that the debt should be converted to "good." Usually, once the collection agency is involved, the original company will not deal with you. This is because they now have a contract with the collection agency, who will get a portion of the collected debt. Capish?
Wiki User
∙ 8y ago
Add your answer:
Earn +20 pts
Who sent you to the collection agency?
I presume your question is "how did your debt wind-up at a collection agency". There are 2 methods: (1) the original creditor sold your account to an agency for a price that is a fraction of the outstanding balance on the account (so the collection agency now is your creditor legally), (2) the original creditor contracted with a collection agency to get you to make more payment on the debt than you have while interacting with the original creditor only. In either case, a collection agency is a company that makes a profit by getting debtors to make a payment of sufficiently greater amount (than they had been making to the original creditor) such that a greater return can be realized from this continued effort to collect the debt, and collection agencies usually are profitable companies. In my personal opinion, the first method (# 1 above) is used in the vast majority of delinquent debt collection situations. Any creditor organization of at least medium business size has enough staff to attempt to coax the debtor to make more payment, so there would be no reason to contract a collection agency to try again. That latter point being understood, collection agencies sometimes resell a debt account to another collection agency when they give-up on trying to get more payment from the debtor (and the account has not been settled).
Can a collection agency do an asset investigation?
No, a collection agency has no legal power to demand disclosure of a person's financial status. If a lawsuit is initiated, the creditor's attorney can request a interrorgatories/discovery petitions, of which there are several types of legal categories. This is generally done if it is suspected that the debtor/defendant is trying to shield nonexempt assets from creditor/plaintitff attachment.
What if a collection agency attempts to collect on a home equity loan?
This is a very bad signYou either:Have not been paying and they can Foreclose on your houseThey are trying to scam you and this means that your personal loan info is out there.
Should you pay off a debt that has been written off by a company and sold to a collection agency if the agency is now trying to collect?
The debt is still valid and collectible therefore the creditor/collector can use whatever means necessary to recover monies owed. Collection procedures would also include the possibility of a lawsuit if the state SOL relating to the debt in question has not expired. It is always better to pay one's debts if at all possible.
What do you do if you cannot afford to payoff a debt that is trying to be settled by a collection agency?
Typically when a collection agency is offering a settlement, it is because the debt is considered toxic and therefore worthless to the original creditor. Many collection agencies use scare tactics to try and coerce you into pay the debt. The first thing you should do is take a look at the age of the debt. Depending on your locality, the debt may be nearing the Statute of Limitation (Varies between 3 and 15 years in the US by state. Average though is 6 years). The Statute is based off the last payment or charge by you on the account (Financial Charges, Interest and such by the creditor do not count). Also, look at your credit report and score. Contrary to what many collection agencies will tell you, debts that they have been given an offer to settle on will not have a positive outcome for you should you settle. Once the account goes to an agency, it has already been charged off and deemed worthless to the creditor. The creditor is simply hopeful for some money at that time. Yes, they have to report that you made a payment, but that doesn't reverse the damage in any way. It will not improve your credit score nor move the account into the positive reports on your credit report files with the Credit Bureaus. Another thing you can do if you don't want the third party collection agency to continue contacting you is write a letter to them informing them that you wish them to cease all communication, to which by law they must honor such a request. It must be done in writing however. An oral request over the phone does not count.
In Arkansas can a collection agency sue you if the original creditor accepts payment on the debt?
If the debt was sold to a collection agency and the original creditor accepted payment AFTER the debt was sold, the money does not belong to them. If, however, you paid the debt and it was mistakingly sol after that payment, the collection agency can't try to collect. If you have proof of payment, forward it to the collection agency and deman in writing that they cease trying to collect this debt.
Who sent you to the collection agency?
I presume your question is "how did your debt wind-up at a collection agency". There are 2 methods: (1) the original creditor sold your account to an agency for a price that is a fraction of the outstanding balance on the account (so the collection agency now is your creditor legally), (2) the original creditor contracted with a collection agency to get you to make more payment on the debt than you have while interacting with the original creditor only. In either case, a collection agency is a company that makes a profit by getting debtors to make a payment of sufficiently greater amount (than they had been making to the original creditor) such that a greater return can be realized from this continued effort to collect the debt, and collection agencies usually are profitable companies. In my personal opinion, the first method (# 1 above) is used in the vast majority of delinquent debt collection situations. Any creditor organization of at least medium business size has enough staff to attempt to coax the debtor to make more payment, so there would be no reason to contract a collection agency to try again. That latter point being understood, collection agencies sometimes resell a debt account to another collection agency when they give-up on trying to get more payment from the debtor (and the account has not been settled).
What is a second party collection agency?
A second party collection agency is an agency trying to collect a debt that is owed to someone else. If for example, you owe on a store credit card from ABC store, they may turn the debt over to another agency that has nothing to do with them. This is a second party collection agency.
Can a collection agency collect from someone on disability And if not how do you stop them?
I used to work for a collection agency, and as far as I remember, no you can't. That would be like trying to garnish a social security check. I don't think they can do that.
Can a collection Agency require collection on a 20 plus year old speeding ticket in Ohio?
Send the Collection Agency C&D letter letting them know that the debt they are trying to collect on is time barred by your states statutes and never contact you again.
If you have old debt from another country and a collection agency in the US is trying to collect can they report the debt on your US credit report?
It is possible.
I did a volunteered Repo on a car and a collection agency is trying to collect difference of 5200?
And it is your responsibility to pay this. You should however contact the original loan holder and request in writing a complete statement of all charges and balances owed, with reconcilliation of all amounts paid or applied toward the original balance. Do it in writing, otherwise there is no obligation by the original creditor to provide this information. contactthe collection agency atthe same time, also in writing, and inform them that you are negotiating with their client, and that they should cease and desist all collection efforts. Remember, do it all in writing. Send the letters registered, return receipt so you have proof of service, and keep copies of everything.
What if a collection agency is trying to collect a debt that is in dispute?
Paying a collection agency may not be the best way to repair your credit or protect your privacy. There are situation that you may find your self in and have to pay a collection agency to to accomplish a short term goal such as buying or refinancing a home. If you are just in general collection agency hell then paying may do you more harm than good. While I would NEVER PAY A COLLECTION AGENCY. How you wish to handle your individual situation is a personal choice. If you do need to pay them off make sure you do it in a way to not cost you future heart ache and pain...
When to hire a Collection agency?
There is some basic signs for a business to hire a Collection Agency.Sign #1The customer (or business) you are trying to collect from ended communication with you. If a client is no longer answer their phone, answer voice messages, or acknowledging their debt in any case, most probably start to get used to the idea that debtor won't pay, and it is time have an agency (or often times called, third party collection agency) to apply a greater pressureSign #2. You are beginning to lose sleep over the cash flow that you're missing out on, and your focus is being spread too thin. When your effectiveness at running your business begins to suffer because of collections, you know it's time to hire an agency for assistance. Your focus belongs on making sales & taking care of your paying customers… not on chasing down problem clients.
Robert who starred in how to succeed in business without really trying?
Robert Morse starred in "How to Succeed in Business Without Really Trying" in the original Broadway cast.
Can a collection agency put the same item on your credit report that has already been reported by the original creditor?
Yes. The original creditor more than likely put the item on first, then sold the account to a collection company who after unsuccessfully trying to collect the debt reported the item to the credit bureaus. So to you it was the same account or item but now the debt has transferred to a new company.
After a surgery 6 and a half years ago a collection agency is now trying to collect on some unpaid bill that you know nothing about Is there a stutue of limitations on collecting on an old bill?
Yes, there is. There is also US federal protection against unfair credit collection practices, including the requirement that the collection agency provide proof that the claim is valid if you ask them to.
