What is a collection agency?
A collection agency is a business that pursues payments on debts owed byindividuals.Most
collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed.
Collections are accounts that are seriously past due and/or have been transferred to a collection agency or creditor's internal collection department. As debt is transferred between different agencies, there may be several records on the credit report for the same debt; however, only one record at a time should be marked as open on the credit report. Collection items use a unique format on the credit report.
Collection agency dispute section provides templates to request:
1.Debt Validation Request
Once you have received a collection notice, you have 30 days to request debt validation from the collector. The Fair Debt Collection Practices Act mandates that the collection Agency provide documentation that the debt is valid.
What does Debt Validation Mean?
Debt Validation, or "debt verification", refers to aconsumer's right to challenge a debt and/or receive written verification of a debt from a debt collector. Theright to dispute the debt and receive validation arepart of the consumer's rights under theUnited StatesFederalFair Debt Collection Practices Act(FDCPA) and are set out in 809 of that act.
What if the debt collector does not respond?
There is no deadline for the debt collector to provide a response to the request for validation. However, a debt collector must cease all attempts to collect the debt until they have sent a sufficient response.
If a consumer makes a timely request for debt validation and a debt collector fails to provide proper validation or does not respond at all, the debt collector may not continue to pursue the debt.
2. Stop Harassing Phone Call Demands by Sending Do Not Call Letter
From the Dispute Manager, select Collection Agency Disputes, then select Do Not Call Request to request the collection agency only contact you by mail. This letter can be used to stop harassing phone calls from a collection agency. It will stop debt collection agency from calling and demanding money. According to the Fair Debt Collection Practices Act, after this letter is received by the collection agency all future communications have to be done by mail only.
3. Settling a Significant Debt
Can you explain what it means to make a Settlement?
It is always up to you to decide to pay off or settle your debts. However, please keep in mind that by doing so, this negative item will not necessarily be removed from your credit report. Creditors are not required to revise your credit report just because a debt has been paid or satisfied. Here are a few suggestions.
o Determine who you should pay by asking the person trying to collect the debt if they own the debt as a collector or if they are working as an agent of the creditor.
o Try to get the creditor to agree to delete the item from your credit report as one of the terms of payment. If they do agree, request and receive the promise in written form before making payment.
o Have the creditor agree to send a Universal Delete Form (UDF) to the credit bureaus at the time the settlement amount is paid. If the creditor won't agree to this, have them agree not to verify the debt if you dispute it with the credit bureaus.
o If you pay the debt in full, you have a greater chance of the collection agency removing it from your credit report.
Be sure to get everything in writing before you pay any money.
How long is the Statute of Limitations for Debt Collections?
Depending upon where you live and where the contract was signed, the Statute of Limitations for Debt Collections can be anywhere from 2 to 15 years. Keep in mind; the Statute of Limitations for collecting a debt is different from the amount of time an item can be listed on your credit report. The time constraints begin the moment when the debt is considered in default.
Does the FDCPA protect me?
The minute a company transfers your debt to a third party collection agency you are automatically protected by other provisions of the FDCPA. As a consumer you are protected from the abusive tactics commonly used by many collection agencies.
Under the FDCPA, a collection agency cannot do the following:
o Call you before 8:00 am or after 9:00 pm.
o Call you at work if you've requested them not to do so.
o Talk to anyone but you or your attorney about the debt.
o Threaten to seize your property or garnish your wages unless they actually intend to do so. Each state has different laws concerning garnishments. In some states it's illegal, and in others it requires a Court Order.
o Threaten to take legal action or sue you unless they actually intend to do so.
o Threaten you with arrest or jail.
o Use obscene or foul language.
o Annoy or harass you with repeated calls.
o Continue contacting you if you have requested that they cease and desist.
o Lie about their identities.
o Collection agents must give their real name and the real name of their company. They cannot pretend to be an attorney, law enforcement officer, or from a credit bureau.
What is a collection agency?
By: Buttom Bunner
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