How to deal with a debt collector? I need help?

Question

I recived a letter from a company NCO Portfolio group demanding 2700 in 30 days or else they will forward it to a lawyer in my town to file a law suit against me. This bill was something that was charged off 5 years ago. I was laid off at the time and had no source of income. Now i am making only 20k a year and i barely have can make it now. Anywas i was at my mothers and they called last week. This very authoritve man from NCO demanded that money now, i told him i dont have it. He then told me i have till the end of the day to come up with it or else he going to get his lawyer he has in my hometown to sue. Then he told me he could take my paycheck, assets ect.

Answer 1

If you are still within 30 days from the first time they contacted you, and you send them a debt validation letter they "have" to stop all collection attempts until they validate the debt.

If it is past the 30 days, you should still send a debt validation letter to them.

Find out the statute of limitations (SOL) for your state. If you are past the SOL, you are not legally bound to pay and they cannot "legally" sue. Though they may not legally sue if you are past SOL, many collectors still do, and win, since quite a few people do not know their rights.

It is illegal for them to threaten to take your paycheck, assets etc. Check the taping laws for your state and think about taping them next time they call.

Never try to make deals with collectors over the phone. It's hard enough to keep them live up to their end when you have it in writing. But if you make any deals with them on the phone, you are basically wasting your time - they will break it.

Check out the link I've provided. Learn your SOL and also learn how to deal with NCO.

Answer 2

Your authoritative man from NCO is an expert at doing this kind of thing. His job is to collect on bad debts, so he has to assume people don't want to pay him, otherwise they would have tried to start paying off the debt earlier.

Another thing is that many of these collection agencies buy the debt at a discount. His company probably bought your $2700 debt for $1500. All he has to do is collect $1500 from you to break even. Anything he makes over the $1500 is pure profit and 100% legal.

All you have to do is tell him the truth. I make X/month and I will be more than happy to pay you Y/month. He will ask you if you want to post date a few checks. He won't screw you with this because he wants you spending your money on this debt, not on overdraft fees with the bank ($35/bounced check is a nice little chunk off the $2700 he is trying to collect, you do the math).

Also, be prepared for this ordeal to last 6 months to a year. As long as you make your payments regularly, regardless of how small they seem to you, you will be fine. Just honor the agreement you make with the collector or then he will feed you to a lawyer.

He is not going to send out the lawyer first because the lawyer costs money. He probably bought $10,000-$20,000 worth of debt, and is going to try to see how much he can pull without having to spend on a lawyer. The reason he won't go for a lawyer yet is because YOU will be the one paying the lawyer fees, so again he would rather have you pay him money than be paying legal fees elsewhere.

Whatever you do, don't play phone tag games with him. Take his calls and work it out. That is unless you have written proof that the debt was charged off for good. If it is not on paper then it didn't happen.

Answer 3

Write a certified return receipt letter to the NCO loser and tell him if he or anyone else from that company contacts you again, he'll be hearing from your attorney! Perfectly legal and he has no legal right to contact you again!
Just for your comfort, NCO has been investigated by the feds numerous times for their "gross tatics" of attempting to collect a debt. If it were me, I'd go down there personally and break someones legs!
Here's another neat trick! Next time the jerk calls tell him you'll get whoever it is he ask for, then lay down the phone and go to the mall! He can't use that line until you free it up!

Answer 4

NCO Financial is a Co. that buys old debts for pennies on the
Dollar and then aggressively attempts to collect these debts,
and will use every scare tactic possible to collect as much as
possible. If your debt was truly charged off 5 years ago, then
simply send them a COPY of the debt discharge and tactfully
explain to them that you will NOT allow them to pressure you
into paying for something you do not owe. Advise them to
immediately cease in their efforts to collect this debt.

Answer 5

Have you ever heard the saying "You can't get blood out of a turnip"? Well, bottom line if you don't have the money you can't give it to them. What they try to do is place fear in you so you will go borrow money to pay them off. What they will probably do is garnish you wages if it goes to court.

If you have access to a bookstore, pick up a book by Dave Ramsey called Financial Peace. It has a section on how to deal with debt collectors.

Answer 6

It's a bluff. Tell them to climb a tree.
If that tough sounding guy had authority and a good case, why would he waste his time with threats? He would just pursue his legal course.
Collection agencies "buy" your debt. If they cannot collect, they lose money. It is a gamble on their part. The make noise and send nasty letters. They threaten with lawsuits. It is bunk. It's all smoke and mirrors.
They do not have any ground to stand on. Forget it. Sleep well in peace.

.

Answer 7

Ok first off...
Get a copy of your credit report.

Second...
Get in contact with an attorney, because that was harassment (how he told you you have till end of the day to get the money etc)

Third...
Find a debt management company and a counselor to help you with your debt and to figure out the situation.

Good luck.

Answer 8

COLLECTION COMPANY -----the last thing they can do is NOTHING they keep barking and barking and they say this and that bottom line they can,t go to court they original depth who the in his name can take you to court five year ago it happen and now they are sending a collection company its a joke they can,t do anything they will keep barking and soon they will get busy with a bone

Answer 9

they can sue and garnish your wages but the court will look at your income level versus what you pay in current debts. you needto call them and try to make payment arrangements as little as 5 bucks a month if they refuse your payment and still take you to court the judge will look at that and figure in the fact that you tried to make payment arrangements and they refused them

Answer 10

If it was "charged off"..that means the company to who you owed the debt claimed it as a loss.. and they are not going to come for it.. and seeing how it's been so long.. Let them take you to court.. that ay that to scare you into paying.. if you have the documentation about the charge off then your golden..