| Fighting The Re-Aging Of Account Collection Efforts: How Do You Stop Debt Collectors? |
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| Written by Jay Marzico |
| Sunday, 26 April 2009 13:22 |
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One of the most common questions that I receive from people struggling with their household finances is, How do I stop collection agencies from harassing me? Many of the people asking me about the harassment they are enduring from debt collectors come from divorced individuals. I recently got an email from a divorced lady whose ex-husband had quit paying the bills he agreed to pay in their divorce decree. Her situation is not unique.
One of the most common questions that I receive from people struggling with their household finances is, How do I stop collection agencies from harassing me? Many of the people asking me about the harassment they are enduring from debt collectors come from divorced individuals. I recently got an email from a divorced lady whose ex-husband had quit paying the bills he agreed to pay in their divorce decree. Her situation is not unique. The familiar scenario that results in a divorce' being be saddled with their ex's unpaid bills plays out like this: A happy couple marries. They build a life together, but the marriage eventually fails. Having been married, much of the couples finances are tied together. In the divorce agreement, it is decided who is responsible for the bills accrued during marriage. The couple move on into their newly separated lives. One of the two of them decides that they don't want to pay on the bills from their marriage any longer, and disappears without a trace. This story works both ways, with either partner playing the vindictive role. Unpaid bills, which had been agreed upon in the divorce settlement. Abused joint accounts. It is a nasty reality. Two things are certain. The injured party is always blindsided with a terrible beating to their credit, and the injured party expends incredible amounts of money and energy to right the wrong. It's not fair, but it is reality. Five years ago, this lady's husband intentionally opened accounts in her name, with her information. He then charged these accounts up and skipped town. His act of malice left her very surprised when the collection agencies started calling. After much fighting, and refusing to pay, the debt collectors eventually quit calling. Now, over five years have passed, and this lady is again receiving phone calls informing her that she owes nearly $7,500 plus interest, plus late fees. Deja Vu. The very same resolved debts were back on her credit report. My sympathies were certainly with her. After having remarried and left the past behind her, it was rearing its ugly head again. She wanted to know, How can these collection agencies legally harass me for my ex-husband's actions? We're not even married any more! She also asked the more practical question of, How do I stop the collection agencies from chasing me for these bills? If you allegedly owe money to a creditor, they may pursue you until they tire of the chase. When this happens, they often sell the rights to collect that debt to a collection agency. While there are state statutes on how long you may be pursued, the start date is based upon when the collection agency purchased your account. To avoid the account exceeding state statutes, collection agencies routinely buy and sell accounts amongst themselves. This process is known as re-aging debt, and can continue indefinitely. How to stop collections can be difficult. You can do it, but you will probably have to go through the process more than once. How do you do it. Don't waste your time putting a comment on your credit report. Lenders don't read them, and even acknowledging a supposed debt has the potential to hinder your efforts to remve collection efforts. When fighting collection efforts, acknowledging the debt can work against you. Besides, how well can you dispute a negative on your credit report in 100 words or less? Don't fear disputing an account in collections, but use your head. You have a right to insist that the collection agency prove that you are responsible for the debt they are trying to collect. If they cannot provide documentation, you are not legally responsible to pay it off. Since debt collection agencies are constantly buying and selling accounts, the paperwork often gets lost in the shuffle. If you know your rights, and proper dispute process, you can normally stop the collectors in their tracks. Check the statute of limitations in your state. The collector may not be able to legally pursue their debt collection efforts. One of the most effective methods of halting those annoying calls and letters is a cease and desist letter. Both the state and Federal government have laws that regulate debt collection to protect you, the consumer. Once you issue a cease and desist, federal law prohibits the collection agency from pursuing you by phone or mail for that account, other than to acknowledge that they are stopping their efforts. As a last ditch effort, you can offer to settle the debt. You may tire from the efforts of the debt collections, and just want the whole problem to end. If so, offer to pay ten cents on the dollar. In return, the collection agency must provide you with a letter stating that your account is settled, and will be removed permanently from your credit report. Never, never settle for a verbal agreement. A collection agency will tell you just about anything you want to hear, as long as they think that they can get at least some money from you. Since they normally pay pennies on the dollar for your debt, they are still making money on you. Insult to injury, they will sell the remaining debt, and the process repeats itself. If you find yourself overwhelmed by the efforts of debt collectors, don't be afraid to stand up for yourself. They can wreak havoc on your credit, but you can repair that damage. Don't get frustrated, get help. Often, one of the most helpful steps you can take to restore your credit and stop the collections is to find a reputable credit repair agency to help you. Some of them specialize in disputing debt collections. One that has come to my attention more than once is Over720.com. They have a reputation for aggressively confronting collection agencies. They are actually so confident of their efforts, that if your debt ever reappears on your credit report, they will fight that collection effort for free. Not many credit restoration companies stand behind their efforts with that sort of confidence. Whichever effort you choose to employ, Good Luck! Keep a stiff upper lip, and don't give up your credit report efforts. It's a fight worth fighting. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Jay Marzico is an authority in the field of credit restoration. He specializes in the consumer protection laws surrounding bill collections. You can find more informative articles on credit restoration from Mr. Marzico at www.over720.com. Grab a totally unique version of this article from the Uber Article Directory |