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Debt Collection
Debt collection is a legal and necessary practice when products or services have already been provided but the consumer has not paid for them. Some companies use collection agencies to pursue payments on debts owed by persons or businesses.
5,393 Questions
Why don't people pay their debts?
The majority don't pay because they can't. Many people have poor money management skills. Others unexpectedly lose their source of income. Still others run into a person situation that incurs massive expenses, like a surgery that isn't covered by insurance, elder care for parents, funeral expenses, etc. Very few people (perhaps 1 or 2 percent) open credit accounts without the intention of paying them back.
first ... you'll start getting phone call and letters from the credit card company asking you to pay... keep in mine that all the while there will be fees added to you total sum owed ... second ...the credit card company will sell your debit to a third party (collection agency)... thirdly ... the third party will start sending you latter and calling you asking you to pay ... the third party may even cut what you owe them by as much as half ... keep in mined that the half price deal is not much of one considering that the credit card company has add fee to the amount owed ... fourthly ... the third party may or may not sue you and or ask a Judges for a lean on your property or garnish your pay ( with the exception of SSI and disability moneys they are protected under law ) ... in any event call the credit card company and tell them why you cant pay they may just work with you ... trust me they will take $1 a mouth Vs $0 ...
If in credit card debt what should you do?
First of all, stop spending. Try to negotiate with the lender(s) of the cards. Call them up individually and tell them that you can no longer afford the minimum due each month (if too high). Some are willing to lower your interest rates and ask you to send in something smaller for a certain period of time like one year, 6 months, etc. After that period is up, you can call them again to renew the repayment terms until you are paid off.
I've worked as a credit counselor previously and basically what we did was contact your creditors and negotiated lower interest rates. What I've heard from other counselors was that banks do everything within their power to avoid a "charge back", charge backs are basically when a company writes off the balance and sells the debt, that looks very bad to a banks bottom line because they're losing money.
Knowing that if you tell them you dire situation and explain to them that it's going to be hard to make the absolute minimums payments they most likely will negotiate with you.
While you're at it you might as well ask them to waive your fees as well!
Good luck!
What if you had a foreclosure and it is not on your credit report?
It sometimes takes a month or two to be added as a negative on your credit report.
Can a collection agency 'freeze' your bank account for credit card debt in Maryland?
Not unless the take you to court, and you lose. If you were sued, and you didn't show up, you lost. Once a judge finds in the collectors favor, they can move to have your wages garnished, including funds in your bank account.
5200 is a bad debt expense as company has estimated that it is possible that company will not be able to receive that amount from debtors.
Do you return or throw away a deceased parent's medical bills when they had no assets?
You should not do anything with them. The executor of the estate should make arrangements to void the debt with the provider.
How many times a day can a creditor call you before it becomes harrassment?
In the state of Kansas, how many times a day can creditors call you.
Well, to start with a judgment stays on your credit for a minimum of 10 years until you pay it off.
It could have an impact on your ability to buy a home, a vehicle, get other credit cards, etc.
Does a spouse in Missouri have to pay a debt of a spouse?
In Missouri the debts of the deceased, including hospital bills, are the responsibility of the estate. The estate, or its beneficiary should reimburse any valid debtors before giving any of the assets away. If the estate has been closed, there should be no further claims. Consult a probate attorney in your jurisdiction for help.
Is a spouse in Missouri responsible for the other spouses debt?
The basic assumption is that yes, the spouse is jointly responsible. It is assumed that both spouses will benefit from the transactions.
Is a spouse in South Carolina liable for another spouses debts?
In most cases, yes, the spouse will be responsible. They are considered to have benefited from the goods and services.
What is the payment people receive when they lend money or allow someone else to use their money?
Intrest
Yes if it was done before she became your ex, no if she did it after, yes if the child lives with you.
It wouldn't show up as a completed foreclosure, but it would show up. It would say "foreclosure started" or "foreclosure initiated" or something to that effect.
Can a credit card company garnish your money from your bank account with out your knowledge?
Strictly speaking, a 'garnishment' refers to the direct deduction of an individual's wages directly from their pay, through an arrangement with their employer and pursuant to a court order. So, it would be pay that is 'garnished.'
Access to a bank account may be far less difficult to obtain. A credit card company may have included clauses in their cardholder agreement by which the cardholder (ie, you) consented in writing to the direct collection of funds from a bank account; this would usually either be a specific 'automatic payment' option which the account holder elected (ie, to make the payment on a specific date each month), or by a default agreement written into the contract. In either case, the cardholder's failure to read the fine print would be to blame for such a debit.
So, although this might literally be 'without the cardholder's knowledge,' it would technically be 'with the cardholder's knowledge,' since this is precisely what the account holder agreed to (or even requested), in writing.
If this is no longer desireable, the credit card company should be notified in writing that such authorization is revoked. One's bank may or may not refund the charges. If such authorization is not considered revokable (according to the credit card company's terms of service), then they may continue such debits. Banks are usually reluctant to refund direct account debits, although many do. The ultimate solution is to close the bank account and open another.
For this reason, many companies prefer automatic check debits, as opposed to credit or debit transactions drawn on bank accounts; It is very easy to delete and reissue a debit (credit) card drawn on a bank account. It is more difficult to close and re-open a bank account, and a consumer is likely to have pending checks that must clear before the account can be closed, and at least a small cost to replace checks drawn on the (now) non-existent account. That makes it easier to get away with the debits; it may be easier and less costly for a customer to just allow the debits.
Consumers should never provide their bank account numbers to anyone, for any reason. Payments should be made via debit card number. That way, individual charges can be contested or reversed without the hassle of closing and re-opening accounts. Debit cards can even be re-issued with new numbers without changing the source account numbers.
Now, all of that notwithstanding, if a debit is indeed 'without authorization,' then this would be wire fraud, and should be reported to law enforcement.
Yes. You have a legal contract to pay the agreed upon amount. If they did not accept your latest offer, they can send the bill to a collection agency.
Can the State of California garnish your wages twice?
Yes if the total owed was not recovered from the first garnishment, and they can keep hitting the account or paycheck until the debt is paid.
Can a debt collector still try to collect on a 22 year old debt?
Yes, a debt collector could try to collect it. However unless this is a judgment the statute of limitations have expired and they would not be able to sue you or take any legal actions.
They could not even threaten to take any such legal actions or reporting to credit and if they did they would be violating 15 USC 1692e § 807 which forbids a debt collector from use any false, deceptive, or misleading representation or means in connection with the collection of any debt.
If this is a judgment then that may change the answer, since some states have judgments that last more then 20 years, some even forever.
Are you responsible for debt of spouse after separation and she dies?
Probably not, as in most cases the debts of the deceased are the responsibility of the estate. Anyone that was also a co-signer on any of the agreements might also be responsible. Consult a probate attorney in your jurisdiction for help.
It depends on how good your lawers are. In most all probability, yes. Where you live is of no concern to a lender, on the other hand retrieving their money is. But before they snatch that from you, they would most probably garnish your wages via payroll deduction through court or by IRS witholding.
