Re: Charge offs

Posted by Drew (24.59.27.46) on December 15, 2003 at 23:40:21:

In Reply to: Re: Charge offs posted by Vickie on December 15, 2003 at 22:40:32:

Unfortunately as long as the debt remains unpaid. The collection agency can attempt to collect on it as long as they want, even past the statute of limitations. However, there are a few states (maybe two or three) that state it is illegal to even attempt to collect on a debt that is past the statute of limitations. I think one of them is Wisconsin. I think the other is CA, although there are disagreements on this one. Some CAs dispute that it is ok to attempt to collect in CA but not file suit. In other words, use voluntary means. The language of the law is not clear on that front. I am not sure which other state makes it illegal to even collect or sue on debts that are past the statute of limitations.

In the remaining states, the collection agencies are free to attempt to try and collect and even sue (hoping you don't know about the statute of limitations as an affirmative defense). So they are free to do this. They can up to seven years after default the account on your credit report. Some collection agencies to get around the rules and force payments will use your credit report against you.

They will sell your account to a sister agency who will alter the account numbers a bit showing it as a new account and then enter it in your credit report. This is legal but it sucks. They do this to poison your credit report.

They have to follow the FDCPA. THe FDCPA rules are found on Credit Laws linked to the left on this site. They can contact you as much as they want UNLESS YOU SEND THEM IN WRITING a CEASE AND DESIST LETTER. IT must be in writing and it should be a certified return reciept requested mailing. It is not enough to tell them on the phone not to call you . You have to notify them in writing according to the FDCPA.

The actual debt will go on forever as different collection agencies just sell it off. THe only way to get rid of it and out of your life forever is to pay it IN FULL or go bankrupt and have it discharged through bankruptcy. Although some collection agencies will still buy and sell up debts that have been discharged in bankruptcy and attempt to collect on it. THIS IS ILLEGAL and should be reported to the FTC, the BBB, the AG of your state and any other regulatory agency your state has that governs collectors.

If you settle with them and don't get it in writing as a SETTLED IN FULL, they will sell the remaining balance to another collection agency and the nightmare will begin all over again.

I hope this helps.

Follow Ups:

Post a Followup