Debt Collection
Debt Collection questions and answers
Learn more about Expense Ratio at TeenAnalyst.com; The number one website for young investors.
Q: Debt collection?
Is it against the Federal Debt Collection Act for a debt collector to call 7 times a day? Even if its on a dialer phone?
I need help in this matter because It's getting annoying. I feel like I'm be harrassed.
Please be serious in this matter.
A: Yes it is in violation of the FDCPA. Calling 7 times a day can be considered harassment. I'm in the Debt Collection business and 7 times a day is a little bit to much. Generally collectors cannot call before 9am and After 9pm, unless arrangements were made beforehand with the debtor.
You need to call the company and get their address and send them a Cease & Desist letter. If this is a collections law firm, after you send the C&D letter, they can only contact you to let you know what next official action they are going to take on the account.
Q: Can a debt collection agency attempt to collect money they say is still owed to the original owner?
My husband and I purchased a vehicle in 2004. We couldn't afford the paymets, so we returned the vehicle to the bank. They sold the vehicle for less than what was owed. Now three years later, a collection agency is trying to get us to pay what is owed. Our credit report as of 3/2007 shows the original owner reporting that the debt is written/charged off and we have a $0 balance as of 10/2004. Do we still owe this money?
A: I guess some of the other posters explained "why" you still owe the debt >
When the original creditor sells the repo, they almost always sell it for less than what the debtor owed on the original contract. That would leave a deficiency balance.
The debtor is still liable for the deficiency balance.
As for the reporting part of your question >
With the original creditor showing a $0 balance on the charge off, they are actually reporting correctly.
You are lucky they have not placed a deficiency trade line on your reports - so far.
A repo voids the original contract.
Because of that, while they legally can continue to report the charge off, they cannot legally show a dollar amount on the charge off.
They can also legally place another trade line on showing the deficiency balance.
If they sell/assign the debt (deficiency balance) to a collection agency, that agency also has a right to place a trade line on your reports.
So to boil it down - with a repo, a person may be able to expect three (or more) seperate trade lines concerning the vehicle debt.
The original account that has gone to charge off ($0 bal)
The deficiency amount reported by the original creditor
The deficiency amount reported by a collection agency.
The "or more" that I mentioned would be if a suit is filed for the deficiency and they get a judgment. If that happens, the judgment could also report
Q: Can a debt collection agency bankrupt me?
I have received letters and calls from a debt collection agency over a $2000 credit card debt, yes the debt is mine, however the caller is always rude so I do not offer much to her. Now I have received a letter stating that the are commencing bankruptcy proceedings against me and with that letter was a copy of my land title. Can they really do this? What should I do?
A: I think you need to re-read the letter. They can not file bankruptcy on your behalf. Credit Card Debts are unsecured and they can not take property to satisfy that debt. The only time they can take property is when that property(Car, Land) was a security in the debt. They can however sue you for the money owed, and you may have to sell something to pay the judegement.
Now if the debt was somehow secured by the land they could start foreclosure proceedings against you. I would consult an attorney who deals with Bankruptcies and Foreclosures. Generally their first consultation is free so it should only cost you time.
If the letter says what you say, then what they are telling you might be illegal. The lawyer should be able to help you take action against them if it is. They are not allowed to threaten you with actions they can not or have no intention of taking.
Q: What can I do about debt collection letters wrongly sent to me?
I keep letters from collection agencys trying to get me to pay debts that are not mine. Is there any way to stop them or maybe charge them for the harassment. Each time it is always the wrong social security number,not mine.I cant believe that it is legal to send people a bill for a debt that is not them.
A: They think they have found the debtor because you have the same or similar names. Send a certified letter to them pointing out they have the wrong SS#. You DO NOT need to provide your SS#, only state that they have the wrong person, it is not your SS#, and that you know nothing of the debt.
Send a copy to your state Attorney General's office.
Q: How do you get a court to garnish wages for debt collection?
I have judgement against an individual and his company for close to $10K. I know that his company is still solvent, yet few debt collection agencies could be found in my area (Lehigh Valley, PA). Is there a way to have the court garnish wages to collect debt?
A: Hi,
I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://memurl.com/furetu
Q: How do I get a debt collection agency that has the wrong number to stop calling me?
Some debt collection agency in Georgia keeps harassing me, looking for somebody named Sarah at my phone number. I do not know a Sarah. They have the wrong number. I have told them multiple times that they have the wrong number, but they keep calling me (obviously they think that I'm lying). How do I get them to stop calling me? They call with restricted numbers so I don't even know how to get back to them.
A: You need to be civil 1st off, being a jerk to these people will only result in more calls. Tell them this is not Sarah's number, and that you need to be put on there do not call this right now. And if you get another call, you will involve your attorney.
Q: How do debt collection agencies find you if you move house?
My partner owes a small amount of money from about 6 years ago. i met him 2 years ago and he has moved house 3 times since then. We now live together and a debt collection agency has managed to track him now. He's agreed a payment plan but I'm intrigued as to how they managed to find him. He hasnt been on an electoral role for 5 years so it wasnt from that.
A: Hi Anon,
They would access other databases (illegally of course). Their main way is by name and date of birth.
If he has bought anything or done anything thats puts him on a data base at this address then that will be enough.
Strangely, I have moved twice this year and this morning received a debt letter from Orange, They have been chasing this amount (which I don't actually owe) for 3 years now.
It's a shame your partner contacted them and agreed a payment plan as they legally cannot collect a debt over 6 years old.
Q: What are the requirements for me to open my own debt collection agency in California?
What are the requirements for me to open my own debt collection company in California? Are there any laws or licensing requirements? I know I will be subject to the fdcpa, but any licenses i must get first?
A: the licensing agreements that are needed is a vendors license and an occupation permit where your business will be located and the google the state of californis/business licenses and you will get the rest .
Q: When a debt is purchased by a Debt Collection Agency, do they become the creditor ?
When a debt is sold to a Debt Collection Agency (via a deed of assignment), does the Debt Collector becomes the Creditor for the purposes of the Consumer Credit Act 1974 and are the rights and duties assigned? Please state court case, legislation in your answer.
A: after being a general adviser, on debt amongst other things, i can say that the answer is definatley yes - the debt collection agency who the debt is sold on to then become the creditor.
i cannot supply you with any legal cases on this, but you could try searching this site for relevant legislation http://www.opsi.gov.uk/legislation/about_legislation.htm
Q: Can I take a debt collection agency to court for harassment?
Hi, I was laid off from my job about four months ago, ever since then I have been struggling with debt. One of my debts has been handed over to a debt collection agency and I recieve about thirty phone calls a day from them, asking for the money I owe. I have told them my situation and that I would be more than happy to pay them back as soon as I find work, yet they still keep calling all day, every day.
On top of that, I recieve about five letters a day, all from the same company, all of them say the same thing.
Is this harassment? Is there anything I can do about it?
A: it is not harassment as defined by UK law there is not a lot you can do about it.
obviously you have not made any arrangements to pay at least something each week or month.
offer them say £5 a month and if they refuse this offer then continue to pester you WITH PHONE CALLS THEN IT IS HARRASSMENT CONTACT THE POLICE THEY ARE BOUND BY LAW TO INVESTIGATE
Q: What is the business etiquette in debt collection?
What is a good business etiquette in asking for a debt collection from another business through a phone call? What if the debtor keeps avoiding phone calls? What should I do?
A: I just use a collection agency. But if its a local business I would waltz down there and make a scene.
Q: What is the law on fair credit reporting and statues of limitations in Texas on debt collection?
I recently gotten a debt collection notice for $2500 on an account I have no distinct memory of, from over 6 years ago. The debt collector stated they bought the debt from citibank, citibank says they bought it from "verizon credit card", but cant give me a number to call "verizon credit card" to try and figure out what is going on. Now, from 1999-2001 I cleared and settled all my credit card accounts one by one, and I saved all my correspondence on these issues, but all of that was lost because they were stored in New Orleans at my father's house. So basically I have these people trying to collect a debt I have no record of, whose latest action is from 2001, and they have suddenly listed this on my credit report, as if it was a new debt, from 2007 - which I am fairly certain is illegal. Anyone know the details on this sort of stuff?
After trying to work with this collection agency, now that I am sure that this is a junk debt, I am convinced these people are scam artists and know it. I called them and explained that I wanted to work with them to track back the company that initially owned the debt, and they said they didn't care, that I owed them money, and that since they bought the debt this month, it IS a new debt, and that they could report it as so., because I "took action on the debt simply by calling them" I told them that legal counsel has advised me otherwise, and that in the state of Texas last monetary action on the date of the debt is what matters, not phone contact, which is true, and they hung up on me. My lawyer, who isn't in this sort of law, is sending them the certified letter, following OCT1999's recommendations. Thanks SO much! I was about to shell out the 2500 because this has dropped my credit rating from 750 to 590, and my job is at risk b/c of it, but now I am going to fight it.
A: Here is a link so you can look this up.
http://www.bcsalliance.com/index.html
Q: once you recieve a debt collection notice does it go staright to your credit report?
I just received a debt collection notice from a newspaper subscription(san francisco chronicle)i that i paid about a year ago but never received. I got these subscriptions from some high school kid going door to door. I helped him out and got 2 newspaper subscriptions, one came but the other didn't.
A: Probably not in this case. A newspaper subscription does not ask for a social security number, thus making it difficult for it to appear on ones credit report.
I had a similar situation with a magazine subscription. I never asked for it to be renewed, but I still got turned over to a collection agency. I wrote a letter of dispute, and I never heard from them again. It never showed up on my credit report.
I have worked in consumer lending, and never have I seen a collection account for an unpaid magazine or newspaper subscription. I would suggest that you at least write a letter of dispute. Otherwise you will receive more and more collection notices.
Q: What area should be covered when preparing a terms of reference for a debt collection contract?
We intend to procure debt collection services for our company.
A: Check with your local attorney. Debt collection is covered by federal and state laws, and your company could be held liable for actions your agent (the collection company or its agents) takes. Attorney fees are small compared to the litigation cost by a single debtor's complaint.