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Should you pay third-party collection agencies for your charged-off credit cards?
It depends.
Do you owe the money?
Can you pay the money?
Did you successfully complete a bankruptcy in which the debt was included? Was the law broken in any way while the original owner of the debt or the third party was trying to collect the money?
If you answered yes, yes, no, and no, then you should pay the debt. If you answered "no" to either of the first two questions or yes to either of the last two questions then you should probably not pay the debt.
Remember three things: 1) familiarize yourself with the Fair Debt Collection Practices Act linked above 2) aside from income tax debt, most debts cannot be collected if they are older than seven years; so, if you haven't paid on a debt or made arrangements to pay a debt in the last 7 years, don't make arrangements now, it will restart the clock on collectibility of the debt and it will be another 7 years before you can claim the debt as noncollectable 3) FAX or send a registered letter with a request to the collection agency telling them that they may not contact you, your work, or your family by phone. When you have proof that they have received the FAX or registered letter, they are legally required to stop contacting you by phone.
Opinion
You will find more benefits dealing directly with the creditor than the collection agency. If you pay the original creditor, this would eliminate the having two negative entries on your credit report. The collection agency is just a middle man who will get a % of what he recovers for a fee. Go to areofcredit.com. It is a wonderful message board with everything you need to know.
Opinion
If the amount shows "charged off" on the credit report, do not pay anyone more money. This renews the account and delays the time when it would not count on your credit report. These third party collectors buy the account for cents on the dollar in hopes that they can resurrect an old debt.
Opinion
A charge off does not indicate the debt is not valid and collectible. The SOL for debt begins at the DLA of the account.
Any collection agency that owns the debt can file suit against the debtor in the debtor's state court. The SOL for debt applies to the time in which a creditor or collector can file suit, but it is not to be considered a valid defense by the debtor, as all states allow the "tolling" of the statute of limitations.
Any payment of any debt where the original creditor is not involved should be entered into by written agreement only.
What else can I help you with?
Debt collection agencies should not be allowed to call a person's work phone to get ahold of them.?
Debt collection agencies should not be allowed to call a person's work phone to get ahold of them.
Is an individual required to give their birth date to collection agencies?
Yes, providing your birth date to collection agencies is often required to verify your identity and locate the correct person owing the debt. However, you should be cautious and only provide personal information to legitimate collection agencies to avoid potential scams or identity theft.
How is it possible for a collection agency to freeze your checking account with out giving proper notice and how do you go about taking care of this matter?
Collection agencies do not normally have that power without a court order. You should go see a lawyer ASAP.
How do you find out who you owe if the collection agencies keep selling the account?
When a consumer receives a notice from a collection agency requesting payment of a debt, the consumer should always present to the agency a written request for confirmation of the debt owed.
Will collection agencies remove old bills from your credit if you pay them in full or just show them as paid?
Collection agencies don't manipulate your credit or remove accounts from your credit. The credit bureaus themselves are repsonsible for maintaining accurate reports, but because the credit is yours, you should check you reports at least once a year to ensure their accuracy.
How do you know what collection agencies you owe?
You should be able to do this by obtaining your credit report. You are entitled to one free report per year from each of the three credit reporting agencies. Log on to experian.com, from there you can get all three reports which will show any reported outstanding debt.
Is there a resource for finding out collection agencies names and addresses for bankruptcy?
Get a copy of your credit report from the three major credit bureaus. You can get one free copy from each per year by law. You can obtain this free copy at http://annualcreditreport.com (see link below). These reports should have the contact info of your creditors (and collection agencies) listed. Google / Phone book combination is the best.
Request to Cease Collection Activity?
Get StartedIf an identity thief purchases products on credit using your name and fails to make payment, you will likely have one or more collection agencies contacting you for payment. This letter should be used to inform the collection agency that you have been a victim of identity theft and that you should not be required to pay for the purchases. Send copies of proof that may be needed to show that identity theft has occurred.Note: You should contact the collection agency immediately and use this letter as a follow-up. However, if you choose not to call first, this letter can be used as a first contact with the collection agency. To learn more about consumer rights and general rules regarding debt collection, refer to the Fair Debt Collection Practices Act.
Should you keep records of telephone calls received from the debt collector outside of legally allowed hours 8am to 9pm?
Yes. Agencies can be sued for like $1000.00 per violation of collection laws.
What should you do if you have two different credit card companies with collectors calling you night and day threatening to pursue legal actions?
One option is to send the creditors/collection agencies a cease-and-desist letter. It should be sent by certified mail. After it is received, the collector must stop contacting the requesting party. This action does not pertain to the original creditor--only collection agencies. OCs do not have to follow the FDCPA. The party involved also has the option of having an attorney remit letters to creditors explaining the debtor's situation. Once a creditor or collector has been notified that legal counsel has been obtained, they can only contact the debtor with the debtor's permission. This option does apply to both original creditors and third-party collection agencies.
Can a collection company do business in one name and report it in another?
That's not what actually happens, even though it appears that way. When a collection agency rep. calls you about repayment, they will seldom (if ever) use the "real" company name. The reason being, if they violate federal collection laws, they want to make it as difficult as possible for you to file a complaint. This is why, if the law allows it in your state, you should tape all calls from collection agencies.
Is it better to fax an agreement to compromise debt to the collection agencies or mail it certified or should you speak verbally first?
If the collection agency is doing the faxing fine. But if you are trying to make an agreement after talking to them first, then I would send it certified. That way you have proof that a person had to sign for it and you have that name if you are told that they haven't received it.
