Re: Question about collections
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Posted by Jim on July 24, 2001 at 11:45:21:
In Reply to: Question about collections posted by Tom on July 19, 2001 at 23:06:04:
Tom The collection agency becomes the sucessor in
interest for the Sears account. In other words,
they own the Sears account. Any reference to
Sears as "their client: is just so much BS.
The collection agency is the owner and can
make any decision in-house in regard to
settlement. You have to understand how the system works.
Companies will bundle their charged off accounts
together and offer them for sale to debt collection agencies. These are called sub-prime
distressed recivables. Debt collectors will purchase five or ten thousand of these accounts
for as low as .15 or .20 cents on the dollar.
They don't expect to collect much more than a quarter to a third of these debts. The time reported on yoyr credit report is 7 years
from the time of the last account activity. So, it
will be on your credit report for seven years from
the time you made that payment, and the payment
most likely reset the collection period allowed
by your state back to the beginning. Debt collectors look for people who own property
to take to court because they can put a lien on
the property. If they do file suit, file a motion
for a definite statement in the form of a complete
accout. In other words, an itemized statement that
shows everything you purchased from Sears, the
date, and the interest rate charged. These statements are repleat with errors, and a collection agency goes catatonic when they have to provide this information. If you receive calls, make sure they don't have
your account mixed up with someone else of the
same name. Ask them what the social security
number is of the person they are looking for.
If it isn't your social security number, inform them that they have the wrong person. Jim
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