Collection Agencies

[4.3LXJ]

I had an experience recently that was sort of a repeat of one I had several years ago. A collection agency sends me a letter and says I owe some debt and pay up. Now the bad news is that these people can manufacture a debt and go to any court and get a judgement against you and raid your bank account. I had this happen again recently, with a debt supposedly to Chase Bank. But you can fight it with just the cost of a postage stamp.

I went to Chase, where I have several credit cards and said showed then the letter and said "what's up?" Somebody with some authority did some research and called the main office and determined I was current.

So here is what you can do. I wrote a letter back and said: I have contacted Chase and they said I do not currently owe anything. I have a legal right to detailed information on how I accrued this debt. If you cannot provide it, then do not contact me again regarding this matter.

If they cannot provide the information, then legally the debt doesn't exist and they cannot collect from you.

This kind of thing is getting common now. I believe it is called "fishing". I thought some of you might benefit from this information.

[Mudderoy]

Great information, however keep in mind this may be different state to state. In Texas, for example, there is nothing they can do to you. I mean if you have more than 2 cars, a house, and 2 chickens (seriously) they can go after any additional assets, but if you are just an average Joe with a house, car etc... they can bluster on the phone to you all they want but there is nothing they can do.

When I was out of work for 11 months, we just didn't answer the phone. After 7 years the debt drops off your credit report.

I recommend everyone pay their bills, but if it is a credit card bill or food for your family...

[4.3LXJ]

I can agree with that

[DETOURS]

"collections" is big business right now, end of storey.

[BlueXJ]

All collection agencies should be rounded up and shipped to the middle of the ocean with a leaky boat and insufficent fuel to return. I would say shoot them all but I hate to waste ammo.

[flippedXJ]

the other thing is if you actually do owe them you can send them one dollar a month and they can not file any more judements against you because you are making payments!

[cheap jeep]

I don't know for sure,but I think the collection agencies receive up to half of what they collect.

[Mudderoy]

I don't know for sure,but I think the collection agencies receive up to half of what they collect.

I worked in IT of a nationwide collection company for 16 years. When I first started there they did very well. As time progressed the percentage that customers were willing to pay went down drastically. Also when congress got involved and came up with the fair debt collections act (I forget what it was called now) collection agencies had to be careful how they came across on the phone. They had to be nicer. I don't think this helped very much.

At the time of my departure, we had 38 offices across the United States. I think it was 3 years after I left that the company was sold to a larger company and most of the 180 people in IT were let go.

I don't believe the company was mis-managed, I think it was the reduced percentages and people's inability, or unwillingness, to pay that ultimately doomed the company.

But yeah 15 to 20 years ago it was like money for nothing!

[Melissa]

I used to get collection letters all the time right after my divorce, I used to tell them that if I owed, prove it was me and I'll pay it, stopped them everytime cause they could not. Once in a while it would be a debt that I owed and I set up automatic payments for what ever I could afford and now there all gone.