“Seniors are constantly being targeted because of old debt,” said Alex Viecco of debt trading firm New Era Debt Solutions. Viecco says they see a trend where debt, which was the result of identity theft, “comes back for consumers. They certainly don`t remember it and suddenly (collectors) pretend it`s theirs. He says his company also hears customers complaining about old medical debts that should have been paid by the insurance company, but were not paid and resurfaced years later. So, while debt collectors may push you to pay immediately, it could work in your favor if you can`t afford to pay the full amount you owe. “Debt collectors typically don`t disclose that they can accept a lower settlement offer at the end of the month to meet a quota, or towards the end of the assignment agreement if the creditor withdraws the account,” says Michael Bovee of DebtConsolidationCare.com, a free online debt advisory community that also offers free sample collection letters. And while debt collectors may insist that you pay the full balance you owe over time, they may prefer to receive a smaller lump sum payment, Phelan says. What for? “You get commissions much faster this way!” Britannica.com: Encyclopedia articles on collectibles If you are unable to pay the collector the amount required by the collector or if you refuse to provide your bank account or debit card number to make the payment, The collector may threaten to run you over for “refusing to pay”. But it`s “a meaningless phrase in the world of debt collection,” says ZipDebt.com founder Charles Phelan, who accompanies consumers trying to pay off their debts.
He goes on to warn: “If a debt collector contacts third parties, we want to know because it is likely that the debt collector has violated one or more provisions of the FDCPA. Having a collection account on your credit report (regardless of balance) is in itself a prediction of future risk, as research shows that consumers with collections accounts on their credit report are less likely to pay as agreed in the future than consumers without credit default. Nglish: Translating a Collectible for Spanish Speakers In most states, the statute of limitations is four to six years from the date you last made a payment. And that`s the catch. “In some states, a voluntary payment on obsolete debt can revive the debt and make it legally recoverable,” Ginsberg warns. But don`t be surprised if you hear about a very old guilt. “Obsolete (or zombie) debt is big business,” he adds. It`s no surprise that if you`ve defaulted on your bills, you may hear about debt collectors. When they call, you`ll almost certainly hear that you have to pay them and that you need to do it immediately. But there are a number of things they probably won`t tell you, and knowing those things can make all the difference in resolving your debt. He explains that most assignment accounts (where creditors assign debts to collection agencies instead of selling them) stay with debt collectors for 90 days.
Any accounts that are not collected at that time can be returned to creditors, usually deposited with another collection agency. Under the Fair Credit Reporting Act, a collection account will remain on your credit reports for seven years and six months from the date you defaulted with the original creditor. Collectors may give the impression that the payment account improves your balance by telling you that they will update your credit report to “fully paid” status. But it probably won`t help your credit scores. Collection accounts are negative, whether they are paid or not. Another example? Bad delays. Phelan says, “Collectors will always try to create a false sense of urgency by imposing a series of deadlines beyond which `this agreement will no longer be available.` The reality is that billing or practice quotes are different during a typical 3-month collection job (i.e. In a non-legal debt collection scenario).
“The collection of the deceased`s debts is a growing and lucrative business. Scary, huh? ” says Mary Reed, co-author of more than twenty books on law and finance (including the book she co-authored with the author of this article, Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights). But in general, she points out, you are not responsible for the debts of deceased parents unless you were a co-signatory, or if the blame belonged to your deceased spouse and you lived in a communally owned state. Creditors or collectors may try to collect from the estate, if there is one. However, if the person has not left anything behind, they may simply be out of luck. While they`re supposed to tell you you don`t have to pay the debt, they can easily omit or gloss over it. When a debt collector says, “We will inform your creditor that you refuse to pay this bill!”, he is simply using reverse psychology. Your creditor has already discovered that you don`t pay the bill, otherwise they wouldn`t have sent your account to a collection agency in the first place! “An expired debt is not recoverable,” advises Jonathan Ginsberg, an Atlanta-based bankruptcy attorney.
“Every state has a statute of limitations that makes debts of a certain age uncollectible. Collection agencies are currently not required to inform you that they cannot sue you or legally charge your credit report if you refuse to pay an expired debt. “Never admit to debt without first learning more details,” Viecco recommends.