My son kept getting offers from different companies and he signed up and was given a liberal credit limit. He had a good job at the time, but has been laid off now and can't pay even the minimum. We get about 5-10 calls daily from different collectors. Do they ever write off the debt?
2007-04-08 09:00:20 · 12 answers · asked by cookie 1 in Business & Finance ➔ Credit
I know from personal experience that if the debt is high enough (mine was $6,000) then they will put a lien on your house or garnish your wages.
2007-04-08 09:09:24 · answer #1 · answered by Lisa C 3 · 0⤊ 0⤋
Debt collectors must stop contacting you if you ask them to do so. (Fair Debt Collection Practices Act) Some credit card companies have programs that will keep the card issuer at bay if you come upon hardship, a type of assurance program. Find out if it applies or if it is too late. Every state has it's own statute of limitations for collecting a debt. If a debt collector hasn't collect after a certain amount of time they must give up, unless there is a money judgement and then it's completely different. If there is a judgement go to a civil court and try to get the judgement vacated.
2007-04-08 10:46:34 · answer #2 · answered by Louis M 1 · 0⤊ 0⤋
No, not really. They may write it off their books and then "sell" debt to a collection agency. This may be what you are experiencing now. Unfortunately, by using a credit counciling agency (careful with these, a lot of fraud companies. Check with the Better Business Bureau www.bbb.org on any you consider) you can stop the calls, but not the debt. He borrowed the money, spent it, and he owes the money back. Try to negotiate a fixed payment plan with the credit card companies, have him explain his current situation, and work out a payment plan. But DO NOT ignore their calls.
First, it will ruin his credit for years to come, and if he can ever get a loan, he will pay huge amounts of interest.
Second, they can get a judgement, against future assets or earnings. As you can see this is a serious matter. Please have him call the credit card companies and work out a plan.
2007-04-08 09:11:21 · answer #3 · answered by Ken C 6 · 0⤊ 0⤋
He can call the companies and tell them his situation and see if they are willing to lower the minimum payments or make some other arrangement in light of his circumstances. Unfortunately, they won't stop calling, because they have a business interest in collecting the money, and if they decide to stop calling they will just send it to a collection agency it will only get worse.
2007-04-08 09:12:06 · answer #4 · answered by Piggiepants 7 · 0⤊ 0⤋
WHEN the credit card company gives up, they WILL sell the debt to a collector. When the collector gives up, they will sell it to another collector. When you have written acknowledgment that you have settled the debt, some collector will misplace the record of settlement.
2007-04-08 11:09:39 · answer #5 · answered by STEVEN F 7 · 0⤊ 0⤋
i dont think they can just stop collecting the money, because they need to pay the stores for the merchandise that your son bought. if the credit card company didnt get money from your son, then whatever he bought wouldnt be paid for, and thats kind of like stealing. good luck, i hope he gets out of debt! he'll hopefully get another job soon, afterall, its not his fault he was laid off
2007-04-08 09:06:50 · answer #6 · answered by Anonymous · 0⤊ 0⤋
if the debt is about a thousand or two, they will write it off then sell it to a collection agency. then thats all they gonna do; call you or send tou a threatening letter. if you check his credit report it will say charge-off. but, if the debt is a large amount, like 5k and up, they could sue your son. file bankrupcy, after 2 yrs he could start fresh.
2007-04-08 10:51:32 · answer #7 · answered by rafaelsj14 2 · 0⤊ 1⤋
No, after the statute of limitations has passed, they can't sue him though. See the link below for a sample letter you can send to the creditors (certified mail is the best way) to get them to stop calling you.
2007-04-08 11:16:01 · answer #8 · answered by Mariposa 7 · 0⤊ 1⤋
no....never- give up... we payed credit card off... than they send ..you owe -
more yet. -you pay it.. than they again send you owe them. And you know you don,t. They try keep keep your credit card open. Yes we even had card account closed... they keep account open. There very hard close a credit card.
2007-04-08 09:18:13 · answer #9 · answered by jackie 6 · 0⤊ 0⤋
hell no..they sell your debt to a company that specialize in nagging you 24hours per day called a "collection agency"--lol
2007-04-08 09:38:16 · answer #10 · answered by ambitiousd 2 · 0⤊ 0⤋