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About collection agencies

When collectors are trained, many call centers require that the agent not give up control of the call. They are trained to be assertive, demanding, and to talk over the debtor during an argument. They are also taught to refer back to any and all possible consequences of non compliance. It is illegal for them to threaten any action they do not intend to or cannot take (a common, illegal threat is to prosecute the debtor for fraud).

Collection agencies are not permitted to call excessively, although the law likely differs from an individual’s opinion as to the definition of excessive. Should you tell a collector that you are going to try to obtain the money in the next few days; the collector will schedule a callback. If you do not call back, the collector will do so starting from the scheduled time/date, and continue for approximately a week. If you have made a promise to pay an amount, the collector will again set a callback time/date. In the event the money is not received and you have not contacted the collector, they will conduct follow up calls, as frequently as twice a day for up to a week. Telling a collector over the phone to stop calling is not effective. To stop all calls, you must put it in writing.

Abusive, illegal tactics by collection agencies can include the following:
Contacting you at work when you have already informed the collectors that it is not permissible
Contacting 3rd parties after contact has been made with you
Disclosing or threatening to disclose information to 3rd parties (friends, family, neighbors, co-workers, supervisors, etc…)
Threatening to have you arrested
Reporting or threatening to report false information on your credit report
Threatening any other action they cannot or do not intend to carry out
Name calling (examples include deadbeat, liar, and thief)
Using profanity
Attempting to collect a debt, or the portion thereof, that is currently in dispute
Contacting you over the telephone after you have sent a letter revoking their ability to do so
Calling in excess of what the law (your state law or the FDCPA98, whichever is more strict) permits
Contacting you in any manner after you have sent a thorough cease and desist letter—except to inform you of any action now in progress, i.e., a lawsuit

In the event of violations, you must preserve your rights. File a complaint with the FTC, the state agency that oversees collection agencies, and/or obtain a lawyer. If the agency is based out of state, you may be able to file a complaint in their state as well.

One of a debtor’s rights when dealing with a 3rd party collection agency is to demand that communications cease. The debtor can demand to be contacted by mail only, or not at all. Should the debtor send a complete CND letter, it is advisable only when the statute of limitations has run out for the debt. Otherwise, the letter will be interpreted (assuming that it doesn’t blatantly state so) as a refusal to pay the debt. The collection agency/creditor may very well file a lawsuit, viewing litigation as the only way to receive payment. A letter restricting communication to letter form only, in many collection agencies, move the debtor’s account from a collector to the compliance department (or whatever the dept is named, that attempts to ensure that the law is followed regarding debt collection) or experienced collectors will prepare a letter for the account.

It is my personal opinion that any and all correspondence sent to the collection agency be sent using certified mail. This is to provide the sender with a return receipt, which may prove very useful evidence in the event you take the collection agency to court.

Many people wish to not work with the collection agency, and instead work with the creditor. A debtor may attempt to work with the original creditor as long as they still own the account. If the debt has been sold, then it is no longer possible to work with the OC. Some entities by policy refuse to work with a debtor once the account has been assigned to a CA. This is not limited to consumer debts, and can include taxes, student loans, tuition, traffic tickets and other civil penalties. Most collection agencies that are collecting assigned debts do so on a contingency basis, and may only settle on the OC's terms.

It is important to know that collection agencies can do the following:

-Require the full payment immediately
-Not accept partial payments
-When attempting to locate the debtor, they may contact 3rd parties to obtain contact info (neighbors, friends, family members, etc…)
-Sue you for the debt (if past the statute of limitations, the defense is expiration of SOL)
-Ask you for your employer, banking info, income, etc…you are not required to give this information to them
-Attempt to collect a debt that has passed the SOL
-Use power phrases, such as “refusal to comply/cooperate”
-Explain any and all possible consequences of not paying off the debt*
Many collection agencies will perform some level of negotiating.
Simplified examples of negotiations may include the following:

-PIF demand --> settlement of 2/3
-PIF demand --> ½ down, ½ in 2 weeks or a month --> ½ down, 2 payments of 1/4
-PIF demand --> 2/3 down, partial payment plan over 3-12 months
-SIF offer, limited time only

The older the debt, the lower a company may be willing to settle for, but no matter which collection agency is attempting to collect, they will likely use boiler room tactics. In other words, the money must be in by 2 p.m., end of the day, end of the week, etc… Whenever a debtor is told that the money must be in by 2:00 p.m. (sometimes 3 p.m.), it is often because any payments received after that time will be applied to the next business day’s collections. Towards the end of the month, the collection attempts often get more aggressive. This is because most collectors/collection manager’s bonuses are based upon some form of monthly productivity, and they are striving to reach or maximize that bonus check.

The terms will soften only over time, provided the CA does not aggressively litigate. After each offer you are given is rebuffed, the collector will likely press you harder by explaining possible consequences (and in the case of abusive collections, will threaten you with things they cannot actually do).

On accounts that have passed the statute of limitations, collectors will attempt to have you verbally acknowledge the debt, especially if the call is being recorded, or having you make a token payment. Even a minuscule payment, or a promise to pay, will restart the clock. A cease and desist letter that does not acknowledge the debt, but does inform the CA that said debt has lapsed is probably the best defense.

Some collection agencies will refuse all payment plan offers, accepting only the BIF. These most aggressive companies will only take the PIF, or litigate the matter. Unfortunately, if they are legally entitled to collect the debt, they then do have the prerogative to proceed this way. Even though it isn’t “right,” it is legal. Before suing you, a debt collector must have either bought the debt, or been assigned to collect on the debt by the entity that does own it. In the event a debtor has asked for validation and is sued prior to being given said validation, then the debtor should answer with a counter claim for FDCPA8 violations.

It might be worth noting a couple of other things. First, many collectors are rarely paid a good wage. They may be paid a few dollars above minimum wage, but have the incentive of a potentially large bonus check after exceeding the amount they are budgeted to collect. The bonus can effectively double or better their standard wages. A second interesting fact is that a good number of collectors end up with the job after having been collected upon themselves, even with the same office if they live in the area.

*There is a difference between giving possible consequences and threatening.
For example: A collector may explain that failure to pay a traffic citation can result in the driver’s license being suspended (if that in fact can happen). A collector may not state that he/she is going to suspend the license unless the debtor pays.

BIF = Balance in Full
SIF = Settlement in Full
PIF = Paid in Full
CA = Collection Agency
OC = Original Creditor
fdcpa = Fair Debt Collection Practices Act
FTC = Federal Trade Commission

I'm supposed to appear in court in early June to deal with Hunt and Henriques law firm. They represent Citicard and they have been unwilling to negotiate a payment plan. When is the best time to request Debt Validation? Should I request Debt Validation before the court date or should I request Debt Validation AT the court hearing???

Sub: #61 posted on Mon, 05/04/2009 - 21:11


I got a pay as you go phone for $30 from walmart. Never heard a word from another bill collector in a year and a half.

Then I got served by one and am being sued, talk about a b**ch-slap. At least I had 18 months of peace.
Now I just have to get a peep sight for the front door so I can't be served lol.

Sub: #62 posted on Thu, 05/14/2009 - 21:03

onebigasstruck2 onebigasstruck2

(Posts: 49 | Credits: )


Sub: #63 posted on Wed, 07/22/2009 - 15:12


If Collector calls What are the most important 3 steps that need to be taken, So I dont get scammed or ripped off?
Thank You!

Sub: #64 posted on Thu, 07/23/2009 - 19:05


received a letter from a collection agency for monies they say I owe from 25 years ago. I filed bankfuptcy 25 years ago in california. They are a michigan collection company that bought the collection (I'm guessing). Can they make me pay after a 25 yrs old bankruptcy?

Sub: #65 posted on Sat, 08/01/2009 - 11:40


Help us,

I am pretty sure that it's SOL unless you have validate the debt. send them a letter stating that it's SOL.

Sub: #66 posted on Tue, 08/04/2009 - 15:28

marysplace2 marysplace2

(Posts: 110 | Credits: )

I pulled my credit report and discovered that this company saying that I owe 3558 from a enterprise car rental. I disputed with credit reporting agency and it came back verified. The date of of 1st delinquency was 02/2005. My question to the group is this out of the sol.

This is what comes up:
Virginia Statutes of Limitation

Open account: 3 years from the last payment or last charge
for goods or services rendered on the account.
Written contracts (non-UCC): 5 years.
Sale of goods under the UCC: 4 years.

I need some advice, the sol (statutes of limitation has expired, right so I can send a DV/Delete letter to the co.


Sub: #67 posted on Tue, 08/18/2009 - 13:47


I have been contacted by a collection agency (Van Ru) regarding a very past due macys account. I have been paying Macys directly ($25.00/mo) but this Van Ru co. keeps calling. Does this mean Macys is just taking my money without taking that amount off my balance? I would prefer to keep paying just Macys and not deal with the collection agency. What should I do?

Sub: #68 posted on Wed, 08/26/2009 - 09:07


Well, they can attempt to collect an out-of-date debt, but filing a lawsuit to do so, at least, is a violation of the FDCPA. So the statute of limitations is not merely a defense but also states a cause of action under the FDCPA which can be pleaded either as a counterclaim or brought in a separate suit.

This also goes for debts that have been discharged in bankruptcy.

I would also suggest that when collectors can attempt to collect out of date debts, what is considered "reasonable" collection practices becomes a lot stricter. And state laws may make such actions illegal.

Sub: #69 posted on Tue, 09/01/2009 - 22:33

Kenneth Gibert Kenneth Gibert

(Posts: 11 | Credits: )

This also goes for debts that have been discharged in bankruptcy.
No, not really. BK wipes the debt out completely. The state SOL only makes collection of the debt unenforceable in a court of law, and the 7 1/2 year SOL only makes it unreportable on the credit report. They can still attempt to collect (within reason, of course) the debt until you die, technically. But not when discharged by BK. It's done, over with, zilch, not there.

And yes, any time a collector or junk debt buyer dares to sue you for a time barred debt, you should *definitely* countersue and collect your $1,000 in an act of delicious irony.

Sub: #70 posted on Wed, 09/02/2009 - 02:49

Chrys Henderson Chrys Henderson

(Posts: 2538 | Credits: )

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