10 important things that Collection agency won't tell you!!

I really appreciate the term gross generalization here used by you right at the beginning of your post.

We both are not able to reach a common platform until now because you have shown the side that is considered legal and I have shown those aspects that are practiced illegally by some of the collectors.

It is clear in this statement made by you



You can't access that info but what will you say to those who actually do so. Don't you think that is illegal?

roxette, i believe i have also pointed out some illegal practices? at least i thought i have! i think it's important to hear about both sides.

in regards to looking up one's banking account balance.. i'm sure if it's illegal or not. nothing in the fdcpa laws speak of that.

let me confirm, i think i have pointed out some illegal practices in other topics, not this one. ;o)

Yes, I know that you have been speaking fair enough looking into both the sides.

OK since we have CA folks coming here, I have a question. Why is it the CAs "re-age" old debt when that is clearly illegal?(change the date of last activity so that the old debt stays on the credit report for well past the 7 years allowed by FCRA) This has happened at least 3 times to me, for 15 year old debts (non student loan), and took 6-12 months for me to clear up? This is the kind of practice that gives CAs a bad name, and in my experience is the NORM rather than the exception.

Re-aging

The reason of re-aging an account is there in your post and you know by now that this is absolutely illegal.

This is done only by some specific agencies that purchase junk debt and do all sorts of illegal activities in the respective accounts.

Speaking in legal terms, each collection agency has to keep a report of the accounts that are past due. This report will divide the accounts into 0-30 days, 31-60 days, 61-90 days, etc.

If an account is re-aged, the FICO score drops down immediately because the scoring model finds the particular account to have defaulted recently.

Bewares of all these illegal tactics that includes changing the dates of accounts opened, changing the dates of last activity, the account is brought back under the SOL period.

If you are ever contacted by an agency pressing you to pay a past account, consider the following avenues:
Never think that you are wrong by getting intimidated. Assume that you are doing the right thing and your rights are being violated.

• Keep a file of all the letters, account statements. These will help you to prove your side of the story.
  
• Do not update your personal information until you have identified that the agency is legitimately holding your account.
  
• Do not acknowledge any debt or make payment agreements until the debt is validated by them. Keep in mind that if a company shows you the past billing statements, it is not considered to a part of the debt validation procedure.
  
• Do not accept any kinds of offers that settle these accounts for less.
  
• And it is very important to monitor your credit report. You will be aware of any illegal activities done by a company in your credit file.

Follow these techniques if you are ever contacted by an agency regarding an account that has been wrongly represented. Report these companies to the FTC, BBB and the state attorney general office. You can also file charges against these companies with the help of your lawyer. They will have to pay for the damages caused to you after you win the case.

Regards
Roxette

My husband received a call at work from someone claiming to be a attorney calling on behalf of Sears. He couldn't talk so I called them back, they told me the debt had been sold to a group of investors who didn't care about anything but getting their money. They would be willing to do anything, garnish my husbands wages, sue us, put a lien on our property (what ever was allowable in our state). I got scared and gave them my bank info to pay $1000.00. After I did so, I realized what a mistake I had made. I called my bank and asked them to stop payment and then called Sears who told me the account had been sold and was out of their hands. I did a lot of research on this company (Leading Edge Recovery Solutions)and found out that the AT of Ill. has filed a Class Action Suit and they have the WORST rating with the BBB. Does anyone has suggestion what I should do next?

I'd start by sending them a letter demanding validation of the alleged debt, and mail it return receipt.

How old is the debt?

karmapolice, and others who claimed similar to this:



Please go back and review the law in question because you are wrong on this. This is an excerpt directly taken from the text of the FDCPA--section 806:



Clearly, the federal law plainly states that even if no one answers the debtor's phone, calling multiple times repeatedly is a VIOLATION OF FEDERAL LAW. This is a violation that can land you in a lawsuit. go ahead karma--call my phone 15 times a day.....and watch what it gets you.

as for the guest, if you dont know the law yourself, you sure do end up looking pretty foolish trying to mock someone else that does know the law. Man, I just love the stupidity that some collectors display when they post comments like this:



Someone either cant read or doesnt care enough to know the law that governs his own employment....

Also, to ari, I am glad that you are an honest collector. But know this--you are part of a very small minority because of it. Think about it--why are there so many companies routinely violating the FDCPA if your experience was the norm??? Clearly, the list that started this thread was not directed at every single CA, but if youre honest you should have no trouble admitting the problems within your industry.

On a final note, for any of you collectors to come in here and think that this is a place where people tell others not to pay their debts, well, thats ridiculous. The posts in here pertain to the rights people have under the law....not "how do I get out of paying legitimate debt". More times than I can count off hand, I can recall plenty of people being told in here to pay their debts. Dont misunderstand the messages we present in here.

Is there a collector here who wishes to match wits with me? I am tired of you table scraps employees coming here attempting to dishearten people who know their rights, and most, no, I would say, all collection companies violate every law made to govern that trade.

Yvonne, at least the collector told the truth about one thing: they don't care about anything but getting money. Follow Morningstar's advice.

Be sure to tell them to FUK off in fine print at the bottom

hi, just wanted to know if i have any recourse. my bank account has been frozen. I live in Texas and use to live in NY. i guess a judgement was filed in Ny because I own property there. I never received notice of judgement intent and yes I did give forwarding address. The monies in this account are from my pension. What do i do now? thanks

I'm pretty sure that even though you own property there you cannot be served there as it is not your residence. I'm also pretty sure that you have to be served and sued in your county of residence. You may be able to speak to the judge that oversaw the case and request vacation of judgment due to improper service and improper venue.

I think that a lawsuit can be filed ina) the county where you live, or (b) the county where the contract or agreement was signed.

I'm glad this topic popped up again, it was a very interesting read. Thank you.