Dealing with a Debt Collection Office

[AJ99]

First of all if I get anyone of you on the phone you can not use any of this information on me!:D

So you get a notice in the mail.. What do you do?
Ignore it? -No because you will miss out on the first step in what to do
Send it back with a mail return?- No. Worst thing to do because we will update to other address we find and send notices there.. even old address or family...
Call them up and yell and scream?- in our line of work we have a moto "cryers are payers" Dont get hostile and upset take a deep breath and relax. Calling them is just going to get the collector to sound like he is working with you and you end up giving all your info to pay...

The first thing to do is read the letter
Figure out what it is for,
The ammount
The date they were placed/bought for collections
Interest that has accrued
And any fees attached

(now once you go into default all fees and interest are typically legally attached to the account and that is the new balance of it!!!!)

Now you know all the info on the account they are trying to collect on!

Do NOT CALL THEM!!!
Send them a certified letter with a return reciept that is requesting a validation and dispute letter of the said debt. This will show the company that you are not just going to pay with out them proving they are legally allowed to collect on it. (this also stops all collection activity on acct as well)

Once you get the validation/dispute back it will show they are who they say they are and the ammount it really is. Or you will never hear back from them!

Once they validate it you can either call them or do it by mail..
You will want to make a settlement offer if you can. Always try for 25% of the account!!! A lot of debt will be settled for that ammount (NOT ALL). They will come back and say they cant and yada yada yada, dont budge. Tell them that is what you can do and if they wont accept it to settle your account then you wont do it. DONT GET UPSET! A collection company wants to get as much as they can. Tell the rep sorry you couldnt come to an agreement to resolve acct and get off the phone

call back in a week and offer the same ammount. Most likely they will accept it at that point. Before you set up any type of payment make sure that you get the AGREEMENT IN WRITING!!!!!!!!!!

If they say it cant be settled then try to get a payment plan. They may ask for a financial statement. Dont give them your real income or credit cards... make up a low income ammount and bills that are almost the same ammount. If you do this they are likely to set you up on a small payment.
AGAIN GET THE AGREEMENT IN WRITING BEFORE GIVING YOUR CC OR I CHECK

If they refuse to set up small payments and state they will garnish or take you to court for a judgement.. you have a hard ass collection agency. REVIEW ALL FDCPA LAWS IN THIS CASE!!!!

If you are looking at a garnishment or lawsuit, make a small payment online or mail in a payment (money order, check, or something traceable). This will stop any legal actions for 60 days. In 45 days make another payment the same way. All it needs to be is a payment. $5 will work to stop leagal actions.

Things not to give--
real references
employer info _-- YOU ARE SELF EMPLOYED!!!!
Spouse info -- YOUR SINGLE
Do not update you adress unless they give you what you want!!
You RENT your home
You own nothing!

If you have any other questions feel free to ask.

[Mudderoy]

I'll add that in the state of Texas, unless it's a government loan, they cannot garnish your wages.

[AJ99]

Correct. Quite a few states have different laws that protect the consumer more than others. So always check your state laws! New York is hard to collect in becasue we can only make 2 calls a week to a person as well.

Also a collection agency can only call between 8am and 9pm!

[NW99XJ]

OUTSTANDING Information fellas,
Thanks for sharing your expertise!

[prcjeep]

AJ, any specific instructions for if the debt is past the 30 days notice?

[AJ99]

what type is it? How old? How long has it been in collections?

[prcjeep]

CC debt, maybe two months they have had it... call about 4 times a day. I asked via phone about a month ago for verification to be sent to address on file as i had not recieved anything regarding the debt. I havent taken a call from them since.

[AJ99]

Send a verification to them in the mail. Is it the cc company or is it an actual collection agency? If it is the cc company they dont have to follow fdcpa. If it is an agency that either bought it or contracted they have to follow fdcpa.

I would send the letter (look it up online there are a lot of pre made letters for validation of debt) and make sure you get it notorized, and send it with a return reciept so that you can prove they recieved it. Include your acct number as well. Once you send the letter if they call you before they verif it they are breaking fdcpa (and we are a sue happy country!!!) $1000 dollar lawsuit typically for each infraction!!!!

[AJ99]

I must also say i am not a lawyer. This is just for guidence to assist you with dealing with a debt collection agency. I will give advice but like i said i am not a lawyer!!!!!!

[prcjeep]

Send a verification to them in the mail. Is it the cc company or is it an actual collection agency? If it is the cc company they dont have to follow fdcpa. If it is an agency that either bought it or contracted they have to follow fdcpa.

I would send the letter (look it up online there are a lot of pre made letters for validation of debt) and make sure you get it notorized, and send it with a return reciept so that you can prove they recieved it. Include your acct number as well. Once you send the letter if they call you before they verif it they are breaking fdcpa (and we are a sue happy country!!!) $1000 dollar lawsuit typically for each infraction!!!!

Thanks for the info! It's an actual agency. I figured if it was past the 30 days then that was out but yeah I'll send em a letter.

Just curious, can debt collectos call from a "unavailable" number? I typically don't answer blocked numbers.

AND I understand this is all guidance, my brother and his wife are attourneys so they normally get to answer my random questions.
Which reminds me, My sister in law is getting calls almost every day from the same debt collector trying to get info about me.

[nickxj94]

This is great info! Thanks!

[AJ99]

call them and tell them not to call that number again. They have to put it on a do not call list. If not it is harrassment.

"debtor defines harassment"

As for a unknown number, A debt collection office can not hide its idenity or purpose of the call

"this is an attempt to collect a debt by a debt collector, any information obtained will be used for this purpose"

They also cant lie to you about it.

Heres a catch 20.

You get a call, you answer and they ask for you by name, u ask if they are a collection agency, they are supposed to answer you with out lying. but if they tell you they are it breaks FDCPA, if they dont tell you they are it breaks it as well. so typically they will avoid the question. Dont answer any of their questions until they answer you and if so they are in violation!
If your sister gets the call and she asks them if they are a collection agency and they tell her they are then again they broke FDCPA and informed someone other than you that you are in debt.

[07Negative]

interesting. There is a AT&T cellphone debt sitting in collections under my name. It's seriously not mine. I had Verizon nor would I charge up a $1000 phone bill. So I've got this dick of a company calling me again and again. I tell them that it's seriously not mine and can they show my signature on any paper work.
They give me some run around story to avoid my question. I get frustrated and just hang up on them. I want to resolve it, but I"m not paying someone elses $1,000 bill.
What's a fella to do in that case?

[4.3LXJ]

DeeJay, they are legally bound by law to give a strict accounting of how the bill was generated in the first place. Ask for it and hold them to it. Make them prove it is yours. If they can't tell them to take a hike

[07Negative]

I'd love to tell them to drive off a cliff, but them how to go about cleaning up my darn near polished credit? I've never had to do this kinda non sense.

[4.3LXJ]

Just make them prove it. If they can't, then tell them to make sure they report this debt as not yours to credit reporting agencies. They have to do that too

[AJ99]

interesting. There is a AT&T cellphone debt sitting in collections under my name. It's seriously not mine. I had Verizon nor would I charge up a $1000 phone bill. So I've got this dick of a company calling me again and again. I tell them that it's seriously not mine and can they show my signature on any paper work.
They give me some run around story to avoid my question. I get frustrated and just hang up on them. I want to resolve it, but I"m not paying someone elses $1,000 bill.
What's a fella to do in that case?

OK in this case what you need to do is file a dispute with the company and ask them to validate the debt as yours as well. Send this in writing to the company. Have it notorized and then go to the usps and send it certified mail and get a return reciept so you can prove they recieved it. If they call you and try to demand you pay before they validate it they are breaking the laws.

If it truely is not yours you need to dispute it asap. By not disputing it, it will continue to hurt your credit and you will be help responsible.

By you saying validate it on the phone they it is your word vs theirs. by mailing it you have proof. :D

[AJ99]

Just make them prove it. If they can't, then tell them to make sure they report this debt as not yours to credit reporting agencies. They have to do that too

semi true... unfortunetly they can report it to his credit if he does not try to fight this. If he just calls and yells and demands them to do stuff they wont.

"if its not in writing IT DIDNT HAPPEN"

[AJ99]

If anyone has a question or need some assistance but dont want to blast it publically feel.free to pm me. Heck I may even be willing to talk to them for you and see if I can get better deals and see if I can catch them breaking laws :)

[Brasscatz]

I had an interesting one happen to me. Seven years ago I sliced the tip of my middle finger all the way to the bone. I had stitches. I received the bill but couldn't pay it so it went to collections. I was able to settle this $700+ bill for about $200. I remember paying it because the lady was decently nice and she made a funny verbal mistake that almost made me crap my pants. Fast forward 7 years to this past May. I was in Austin on business when my wife calls me and says we have a letter from a collector for a hospital visit 7 years ago. I had to say B.S.!!! I have been PERFECT ever since that last incident. To make a long story short, and to my utter surprise, the bill I paid was for the ER visit, and the bill I never received and came to haunt me 7 years later was the physician's fee. I thought it was all paid off long ago.

Talking to the lady (who was also decently nice) she said she could get me 15% off my total. Another B.S.! It's been 7 years and you'll only take off 15%?? I told her that I'd talk to my wife and see what we could do. She called back 3 weeks later and this time she said 20% off. I told her the same thing... I'd talk to my wife and see if we could afford it and I'd call her back. I had no intention of calling her btw. Being that it's 7 years later and things only stay on your credit for 7 years, I have decided that this was a very sad last attempt to collect on this debt before it falls off my credit. Yes, they could technically sue me for the money, but with such a small amount owed they wouldn't bother, I'm sure.

Oh, after all this happened, I checked my credit and it was amazingly good even with that ONE small blemish. I found out when it was reported on my credit, and the estimated date it will fall off is this month. I think I'll be alright. I did think it was funny how the lady tried to outsmart me though... she was clever, but not clever enough. I have yet to hear back from her :D

(On another note, I don't have an issue paying my debts, I owe it and I should pay it, BUT since the doctor already had written the fee off and this was a collection agency that I hadn't heard from in 7 years.... I didn't feel the need to pay them mere months before it was gone)

[07Negative]

That 7 year wives tale is hokus pokus. A debt collector can put it on your report whenever it's pulled up as a debt. So that blemish will still be there. Collections is like herpes man.

[Brasscatz]

I don't know, man. I've done a ton of research on the matter to cover myself. Straight from the Experion site: Federal law requires the lender to report the original delinquency date of the account that led to charge off andany subsequent collection efforts.The original delinquency date is the date from which the seven year period is measured.

The original account and any subsequent collection accounts are deleted seven years from the original delinquency date. Because each account must include the original delinquency date, none should return to your credit history.

And from union plus site: The account can be reported for seven years and 180 days from the date of original delinquency. It doesn’t matter when the collection agency bought the account, and it doesn’t matter what date of last activity is listed on your credit report.

[AJ99]

I don't know, man. I've done a ton of research on the matter to cover myself. Straight from the Experion site: Federal law requires the lender to report the original delinquency date of the account that led to charge off andany subsequent collection efforts.The original delinquency date is the date from which the seven year period is measured.

The original account and any subsequent collection accounts are deleted seven years from the original delinquency date. Because each account must include the original delinquency date, none should return to your credit history.

And from union plus site: The account can be reported for seven years and 180 days from the date of original delinquency. It doesn’t matter when the collection agency bought the account, and it doesn’t matter what date of last activity is listed on your credit report.

You have done your research. But be aware that even if you pay it off they can then report it for another 7 yrs. If it gets sold to another company they can report it again. As for suing you, they only have 4 yrs (depending on your state) from the original date of deliquency to do so. After that they can not "legally" go after you. Now what may happen in this case though, the date you paid the other one could have restarted this one from that date. It all depends how it was processed.

If a collection company buys an old debt they typically try to report it again to get it on your credit longer. If you throw a big enough stink they will remove it (call experian)

medical bills are a bitch to fight as well.. I have been fighting with one for me for 2 yrs now..