I recieved a debt collection notice from a collector and a letter from them that offered me a loan for the exact amount of the debt down to the cents
2007-06-07 09:42:30 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
I have no intent in taking the loan i was just wondering can they do it, do they all do it
2007-06-07 14:27:25 · update #1
That is one tactic that collectors try to do.
It's unfortunate when the people actually accept those types of offers.
Basically that type of offer is a totally new contract which makes both the collection SOL and the reporting period start as a new account.
Which means that if a person takes the offer and is past the collecting SOL, they can then legally be sued.
If a person is not past the collecting SOL, but for example the collecting SOL is 5 years and a person only has a year or less before they are out of SOL, the SOL starts as new and they are back to being within the collecting SOL for another 5 years.
2007-06-07 10:05:31 · answer #1 · answered by echo 7 · 0⤊ 0⤋
One of the things is does is re-ups the statute of Limitations on the debt. The loan pays off the first debt and the loan is now a new debt with a fresh statute.
I would steer clear of doing this and just make some payment arrangments with them.
2007-06-07 19:13:43 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Beware!! Chances are that since you are in collections, the loan would have an extremely high interest rate. Not to mention that they would probably take it to pay the collection. Why pay more interest, which most people couldn't afford-that's why it's in collections now, if you don't have to? DON'T DO IT!!! Here's what you do: tell the collections people what you can afford per month and if they won't accept it than the debt is canceled. It's the law in Ohio.
2007-06-07 16:53:45 · answer #3 · answered by Sarah 1 · 0⤊ 0⤋
Yes. We often offer loans to people who have old debt. This does a couple of things.
1. It gets it off our books as past due.
2. It gets it off your credit report as unpaid.
3. It starts to build you new credit and shows that you are being trusted again.
Don't do it unless you are SURE you can handle the payments. Otherwise you will be right back in the same boat again.
Good Luck
2007-06-07 16:51:52 · answer #4 · answered by Stephanie J 5 · 0⤊ 0⤋
They can do it; it's actually a slick way of taking a debt that is not gaining interest and making it into an interest-bearing account.
2007-06-08 14:47:00 · answer #5 · answered by stephen l 2 · 0⤊ 0⤋
yeah they did that to me plenty of times. but when u apply for the loan you will get denied. at least i did. so i just filed bankruptcy
2007-06-07 16:52:29 · answer #6 · answered by Chayvon 3 · 0⤊ 1⤋