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- The most important thing to do is identify the debt and that it is legally in your name.
- The second is to make sure to go through all your records to prove the debt is unpaid.
- Find out if there is a grace period between the day the debt was listed in collections and the day it is reported to the credit file (most cases you have 30 days from the day it was listed to the day it is reported)
- Try to pay it in full as soon as possible
- If you cannot pay in full, make an offer to pay less and have the debt settled in full - usually you would give a letter explaining that there is hardship and you simply do not have the funds
- If you are disputing the debt - write a letter to the collection agency explaining the dispute and why you feel you do not owe the funds (they must put the file on hold until it is determined if the dispute is valid or not) THIS MUST BE IN WRITING TO BE VALID
- Simply not wanting to pay the bill is not a valid dispute
- Did the collection agency properly identify that you were the correct person by having you verify your date of birth?, SIN, Address or other information that you would have given to the creditor that has listed you to collection
- If you cannot pay in full immediately - offer a payment plan
- If the collection agent is rude (be careful not to mistake being aggressive or firm as rude) demand to speak to their supervisor
- Once paid or "settled" in full ensure you get a letter from the collection agency releasing you from the obligation
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Does the creditor or the collection agency get the money you pay on a debt?
When a collection agency takes on a bad debt, in many cases they are "puchasing" the debt from the original creditor. When you then pay off the collection agency, your money will stay with that collection agency. This is the most common scenario, but some companies do have their own internal collection agencies (Capital One, for example, has their own collection subsidiary in Idaho - the Westmoreland Agency). Hope this helps!
What does Bad debt and placed for collection and skip mean?
Bad debt means debt that is not collectable. Placed for collection means the debt has been sent to a collection agency or department. Skip means the creditor cannot find the debtor and will use different methods to locate the debtor.
Can debt collection agencies sue in North Carolina?
This is a misnomer. When an account is sent to debt collections, the collection agency does not typically own it. They are simply acting on the part of the lender or creditor. When judgment is sought on a bad debt, it is the lender who is suing. They are perhaps doing so through the collection agency and the lawyer they have under contract, but it is not the collection agency who is suing.
My account balance with American express has been turned over to a collection agency. Does American express over a reduced payoff as a settlement?
when a company "sells" a bad debt to a collection agency it is at a fraction of the total bill due. So, if you have a bad debt to American express in the amount of $10,000, more than likely it was sold to the collection agency for 2-3000. The remainder can be written off by American Express on the taxes that are filed by the company. What you can do is contact the collection agency after saving 40% of the debt (or 4000) and offer to negotiate a settlement. If you settle for $4000.00 you are saving $6000 and the collection agency is making 50-100% profit on the bad debt. This what the debt settlement companies do - no sense in paying the settlement company fees when we can negotiate ourselves.
How soon can a vendor send a client's account to a collection agency?
There is no law that restriction how long a creditor or business must hold a bad debt before forwarding it to a debt collections agency.
Is there a law on when you can send bad debt to collection agency?
Depends on the company usually 120 day or 90 days.
Where do you find a collection agency?
Looking for a Collection Agency, involves to know what type of debt collection service is need it. For Commercial Collections or Consumer Collections it can be found on sites that regulate the collection industry like:The Commercial Law League of America ('CLLA'),ACA InternationalAlso is very important when you choose a Collection Agency look for an agency that is familiar with the collection laws on the state that apply the bad account.
Can a collection agency file criminal charges for a bad check?
Can a collection agency file charges for a bad check
Do you have to deal with a collection agency to resolve a debt?
NO. Once you enter into an agreement with a collection agency no one else can collect against that debt. If you have other debts outstanding not covered in the agreement then another agency may be authorized to try and collect those debts. Collections agencies do not sue people. They can ask the courts to award a judgment or wage garnishment in order to help collect bad debt.
Can a collection agency put a delinquent debt on your credit report if it was never reported by the original creditor and the SOL has expired?
Yes they can. The SOL being expired gives you a good basis upon which to dispute the entry and an affirmative defense to a lawsuit; but those won't prevent a collection agency from reporting a bad debt.
If a debt on your credit report says 'bad debt write off ' can the creditor still sue you or collect the money?
= If your credit report reports that you have a bad debt write-off, then it means that the original creditor has written off the debt, but they can still sell the rights to the debt to a collection agency and they can contact you and take legal action.
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.
