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How do I know if a collection agency attempting to

Date: Wed, 04/06/2011 - 15:21

Submitted by coolbreezetg
on Wed, 04/06/2011 - 15:21

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Total Replies: 4


How do I know if a collection agency attempting to collect an old payday loan is legitimate? I researced the name and location and it appeared to be legal but I still gave them my debit card info. I'm not sure if I should cancel the payments but don't want to ignore it either. I would like your advice. Thank you


In order to know whether or not a collection agency is legal, check out their phone number. If the number is blocked, then there is a high chance they are a scam company. You should ask the collection agency to send its request for payment in writing so that you may review it. If they are a scam company, they won't give anything to you in writing. You should also check your credit report. A real collection agency will update the collection account in your credit report. You can ask the collection agency to validate the debt. This will help you know whether or not the collection agency actually owns your account. If they can validate the debt, then you should think of setting up a payment plan with them and pay off the debt.


lrhall41

Submitted by Anna Sweeting on Wed, 04/06/2011 - 20:26

( Posts: 1827 | Credits: )


Quote:

A real collection agency will update the collection account in your credit report.


Total BS. The majority of collection agencies do NOT report. It costs the CA to report, plus there is no legal requirement for them to do so. A lot of the major agencies do not report.

To the OP...have you checked with the creditor? Who do you owe and who is collecting??


lrhall41

Submitted by SOAPLADY on Wed, 04/06/2011 - 20:54

( Posts: 17315 | Credits: )


Quote:

Total BS. The majority of collection agencies do NOT report. It costs the CA to report, plus there is no legal requirement for them to do so. A lot of the major agencies do not report.
Then how come most of us here find that our credit report mentions the name of the collection agencies in case we default our loans and our original creditor sells off the account to the CA?


lrhall41

Submitted by Anna Sweeting on Wed, 04/06/2011 - 22:29

( Posts: 1827 | Credits: )


I think SoapLady took issue with the fact you stated this like it was a golden rule. Not all legitmate CAs report. Some do yes. Not all. That is not a way to tell if they are legit. You should make them send proof that they own the debt. There is a template on this site. I believe most states require the CAs to be registered. Check with your state to see if they can even collect. Also, is the original debt valid? If the original debt was illegal than a CA cannnot collect on it either.


lrhall41

Submitted by J L B on Thu, 04/07/2011 - 08:16

( Posts: 329 | Credits: )