General process of things with being behind on payments

Hi Htgt123

The creditors try to recover the debt from the consumers in every possible way. When the debt becomes uncollectible for them, they either employ another department to seek collection efforts or sell the debt to the outside collection agency.

When the debt is sold to the collection agency, a lot of time has passed by now and here comes the possibility of misrepresentation of your accounts. Incomplete data or mishandling of your information are some of the common causes of not getting the debt correctly identified.

Some of the collection agencies buy junk debt from the creditors so that they can thrust collection efforts under legal threats. They also take the advantage of the consumers' credit file being tarnished at this moment.

But, these agencies can continue collection efforts only till the debt is within the SOL period. During this time, they may take legal actions depending upon the state laws and your availability. Once the debt is out of the SOL period, you can't be legally forced by them to pay the said debt.

Also, if your debt is near to the seven years reporting time in your credit report, it will automatically disappear from your credit file.

Ways of handling your debt and making payment arrangements with them depends upon the knowledge of your consumer rights guided by the fdcpa law. It is always advised to pay a legitimate debt to ensure better credit ratings.

On the other side, those agencies that misrepresent your accounts or do not provide the true picture of it, it is better to deal with them after you are informed of your rights and take the help of your lawyer who specializes in the lawsuits of FDCPA and FCRA violations.

Regards
Roxette