Oh, I'm real good at chatter (grin)

Posted by JKelly (151.197.206.182) on July 21, 2004 at 22:06:22:

In Reply to: Re: credit card debt posted by cottontop on July 21, 2004 at 19:57:07:

Well, to begin with you will get phone calls and mail (probably) from inhouse collectors. After the debt charges off, it will either be assigned for sold to CAs. If assigned, the original creditor gets the money, but the CA gets a designated % of the money, according to the contract. If the account is sold to a CA, you will start to get phone calls and mail from the CA. At this point, the original creditor has nothing more to do with the account. There is a lot of psychology in debt collection, so, CAs lie, and threaten. You can't believe anything they say. Your best defense at this point is to absolutely ignore CAs. When CA#1 can't collect, he will sell it to CA#2. Each time it is sold, and the older the account gets, the less it is worth. After charge off, the account is only worth pennies on the dollar anyway, and it goes down from there. There is always the outside chance you will be sued by one of these CAs. Your psychology in dealing with a CA is not to let them know you care. Don't look at your credit report, don't apply for new credit. Just lay low. Let the SOL run. If a CA discovered assets, and thinks he can collect on a judgement, he will probably sue. You need to know your state exemptions. Even if a CA gets a judgement against you, he may not be able to collect. 80% of all judgements go uncollected. It costs money to sue and execute on a judgement, and if you don't have assets, most CAs will just move on. That's about it. Do you have specific questions? Since you hired Budd Hibbs, I am sure your best interest will be served. I will be happy to answer specific questions if I can. Otherwise, just relax. Let Budd HIbbs do his job. I have heard nothing but very good things about him.

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