Wow, you can sure tell who the collection agents are here, can't you? BRIAN M, report to the head of the class!
The collector is basicly telling they that they are giving up on the harrassment portion of the collection process. Now they have to decide if it's worth their time and expense to sue you.
If they have an office near where you live, that makes it easier for them. Otherwise they have to hire a local lawyer and spend more money.
If you own under $500 it's also not worth their trouble to sue. Remember they only get about 30% of what they recover, so is it worth spending several hours of work to make $170? On the other hand, that $2000 debt is worth the trouble.
How old is the debt? After the Statute of limitations runs out they are no longer able to sue you. Depending on the state you live in, that's around 6 years. If it is only a year or two they may just wait around and continue to harrass you. Ruining your credit report is a guarantee.
What you can do for now is send them a cease and desist letter. That will stop the phone calls and collection attempts, but it could also prompt them to move on with a lawsuit.
So consider everything I've stated and decide how you wish to proceed.
Good luck
Note to Echo: Contact me
While it may sound like good advice to tape record collectors in order to catch them harrassing you, it's a tricky legal situation. I've not only dealt with some similar cases, but I have 30 years of telephone experiance under my belt regarding wire tap laws. Let me discuss it with you before continueing to recommend this procedure. If done right it's great!
2006-06-30 05:06:12
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answer #1
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answered by Anonymous
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When they charge off a debt, it means that they have given up trying to collect it. But if they sold the debt, then the collection agency that they sold it to will continue to try and collect it. Once they have hit a brick wall or the statute of limitations runs out for them, guess what, they sell the debt to another agency and the collections process begins all over again! What happened with the car is a common practice, just like with houses. A loan is taken out and the property goes to the person making the payments. If they default, whether by not paying or by returning the property, the property is repossessed. (Even if you turn it in, it's still considered a repossession.) Then the original maker of the loan sells the property sometimes for the remaining value of the loan, but most times for the highest amount they can get. If they get the full loan value (which they rarely ever do), then you owe them nothing, but if they get less than the remaining value, you owe the difference. And since they can keep selling the debt over and over, you'd be better off just trying to either make a settlement offer with the agency or pay it in full. One more thing: The Myth of collections. Most people believe that once a debt runs for 7 years (or the statute of limitations) that it automatically drops off. NOT true! What happens is, the original maker of the loan sells it to a collection agency. When that collection agency has done all it can, it turns around and sells the debt to another one. And so on. Each and every time that debt is sold, the statute starts over. So the 7 year thing only applies to the original maker of the loan. After that, it could stay on your credit forever, because the debt could continue to be sold, and with each new collection agency comes a new negative mark against your credit for non-payment. Each of these marks will take 7 years to drop off, but the current collections activity will stay. Which is why they sell the debt; you may not pay them, but they continue to ruin your credit each time you don't.
2016-03-26 22:25:43
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answer #2
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answered by Anonymous
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You got some bad advice ahead of me friend. With the collection agencies they now own the account and will wait it out until you get a job or resolve your current situation.
Then they have the right to sue. If they win and you can't pay, it is no problem for them to wait longer. They place a judgment on your credit file. This stays on your file until it is satisfied.
Thinking of bankruptcy? The laws changed, you now have to make payments for five years. The courts decide how much you pay a month.
Have a home? You'll never get to borrow upon the equity unless the judgment is included in the loan. The same applies in selling or buying a home.
As for the rude and unprofessional collectors, I bet your a real mama's boy.
2006-06-29 16:13:02
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answer #3
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answered by tony 2
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They're just trying to scare you! Of course we need to pay our debt, but unfortunately that is not always the case. We all get into situations that lead to financial challenges. It will go on your credit report, be discharged eventually but the most damaging is that your credit worthiness is not so perfect anymore :) You could call a credit counseling company to resolve your unsecured debt but keep in mind some companies may notate this on your credit report but at least the amounts will get paid at monthly premiums you can afford based on your income. Otherwise, keep in mind that until the debt is paid one way or the other it has to be done if you want to move on...Oh and about the rude, un-professional rep. that contacted you--she gets paid to collect the $$$$ but in no way can they threaten you or call you at your place of employment if you have informed them of this request. You will get several different settlement options which will minimize the initial debt but you may want to even try calling the original creditor and see if there is anything that can be done. Once it's in collections be prepared to hear from them all the time. Good Luck to you and your financial future. I hope this helped! :)
2006-06-29 13:25:53
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answer #4
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answered by AM 1
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It is a violation for a collection agency to threaten you. If this just happened, and you don't have it on tape, write down the date, time and who it was you spoke with. Write down as much of the conversation as you can - DO NOT embellish, keep it to the facts. The reason for doing this is you will be starting to create a papertrail of the violaitons this company is doing.
There are several different things that could happen with this. If this is the first collector to handle the debt they may either return it to the original creditor, sell it, sue you.
Send them a dispute letter if you haven't already. Send it certified mail return receipt. When you get the green card back, send a letter to the credit bureaus (if they are reporting) and dispute some of the violations that they have listed (I'm positive that there are a few violations, there usually is)
Create that papertrail, if they should sue, you may have counterclaims.
I wouldn't be suggesting these things if most collection agency's would do their collecting in a legal manner. Since most of them don't, learn your rights and use them.
I would suggest going to the link I've provided and do some reading.
edited to add: After reading Studly's post, I realize I erred in not explaining that in order to tape a conversation, you "need" to become aware of your states taping laws first.
(thanks for keeping me on my toes Studly lol)
2006-06-29 13:27:10
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answer #5
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answered by echo 7
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when an agency "fails to collect" it isn't on behalf of anyone but themselves....that's their money and their new problem.
However to address the 2nd part of your question...this means you were late and it may go to garnishment if they can establish where you work. However, next time they call...just say "I have no idea what you're referring to" and "stop calling me" Statue of limitations will sometimes run out on companies....but once you admit to the debt, the time begins all over again....keep quiet and screen your calls.....or...pay your bills buddy
2006-06-29 13:08:50
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answer #6
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answered by WiseWon 3
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They can NOT DO ANYTHING TO YOU.Under Canadian Or U.S. laws .You can not be harrased or intimidated,If they do that Call 911 AND TELL THE POLICE YOUR MENTAL health is being treatened by a collection agent,they could wind up in jail.Your bad credit dept stays on your equifax report 7 years-no choice-get a secure credit card from capital one and slowly rebuild your credit-good-luck!!!!!!!!!
2006-06-29 13:43:38
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answer #7
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answered by Anonymous
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Generally when one credit agency can't collect they will pass it on to another. They were just trying to scare you into paying it.
2006-06-29 13:06:42
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answer #8
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answered by butterflykisses427 5
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They are trying to scare you.. they will probably try to file a judgement against you.. it will go on your credit and if you own property it will attach itself to the title of your home. They just want their money... you can always declare bk...
2006-06-29 13:06:58
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answer #9
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answered by *♥*fabulous fab*♥* 3
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nothing another company will get the account
2006-06-29 13:07:26
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answer #10
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answered by uofsmike 4
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