Yesterday, USA Today published an article on the absues of debt collectors (who we all know as collection agencies).
It’s great this is getting more press, as it is a real problem. Of course, the comments on this article were predictable “hey, just pay your debts” was the most common comment. I’m with you - if the debt is yours, pay it. But what if it isn’t yours and you have a debt collector hounding you and reporting the collection on your credit report?
Yesterday, I talked to a client who was being hounded by Palisades Collections (well known in the collection industry and by the community here at Creditinfocenter). This debt was most definitely NOT his, yet, for the past 9 years (yes, 9) he’s had this collection pop up on his credit report. To give you an idea of his credit worthiness, his FICO score is 800.
The collection was supposedly originally with B of A, and has bounced around from collection agency to collection agency. He has a letter from B of A saying this is not his debt. As he put it, “it always seems to show up whenever I’m about to buy a home or car.” So what can he do?
I told him he needed to send yet another letter to the collection agency, but also to write an intent to sue letter to the bureaus - they’ve been shown the documentation, and this debt should not show up because a) the original debt is more than 7 years old (past the time allowed by the FCRA) and that the original creditor says it’s not his. We’ll see what happens.
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6 responses so far ↓
1 shavdaddy // May 20, 2008 at 12:41 pm
hey guys…intresting sight to say the least…but i think you left something out…one very helpful tip to give to customers you could add to your section probably should be step #8…hope this hepls
“The Debt Validation Strategy” @ http://www.creditinfocenter.com/rebuild/debt_validation.shtml
8. Once the agency has validated the debt what you should do next is -pay your bill!!-
you are telling them everything in the world to do but pay the debt?!?! if they actually owe it, and the agency has validated the debt, why are you not encouraging them to do the right thing and meet their financial commitment? you just tell them how to get out of money actually owed? hahaha!!! i wonder what you would do if somebody personally owed you money and used every single snaking trick to try and get out of it? you guys are encouraging non payment of debt owed. after its validated and the agency has met all comsumer request, where is the part about —-actually paying the debt you owe—
i will leave you with this
Romans 13:8
Let no debt remain out-standing, except the continuing debt to Love one another
have a wonderful day cheating hard working agencies and creditors out of payment for hard work and services provided which are due, just, and owed
feel free to respond, or “validate” your actions =)
2 shavdaddy // May 23, 2008 at 12:42 pm
awww…whats the matter guys, couldnt muster up a response to the realness that was dropped in your face? well, maybe you shouldnt slander hard working collection agents and agencies then!
its funny…you accuse the collection agencies of preying on the week and least intelligent, but you do the same thing…you scare debtors so bad they wont even call agencies to pay money that is due and just. you should be ashamed of yourself. you are the biggest hypocrites in the entire industry =) have a great weekend, and make that money by scaring the week minded into thinking they actually need your help! …your day will come =)
3 Kristy // May 23, 2008 at 12:47 pm
Thanks for your honest, real comments.
We don’t advocate people getting out of bills they owe, but perhaps you should take a look at all of the unethical companies out there who hound people over debts they DON’T owe.
4 S.A.D. // May 26, 2008 at 8:15 pm
Name calling, a Bible quote, and a threat?
Was this a response from a collector or a Baptist church?
5 Michael // Jun 1, 2008 at 7:14 pm
Maybe both?
There are other boards out there that advocate eveything EXCEPT “pay your bills”. This site is not one of them. This site encourages responsibility. This site encourages paying what is owed, to whom it is owed.
To Shavdaddy - If, God Forbid, you got late on one of your bills, and LIFE got in the way of things, and this bill got overlooked until a collection agency called you about it, would you pay it before making SURE you owed this collection agency? If so, then I have a debt that I know you owe someone else, but I’m collecting on it for them. Pay me.
If not, then there ya go.
And what about if a debt gets to the point where the OC (original creditor) charges off the debt, and sells it to a JDB (junk debt buyer - as “junk debt” is debt sold to someone else when it is past due and “uncollectable”)? JDBs really hassle consumers to pay debts that in many cases (not theirs, the statute of limitations has run out, or Bankrupcy has been claimed) are NOT owed anymore, legally.
6 jr // Oct 8, 2008 at 1:37 pm
shavdaddy is a joke he is just mad because he hasnt recieved enough info. on his accounts.
get a real job hobo…
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