Painter's book is highly recommended by yours truly. I bought it a couple months ago.
Credit card/ debt settlement
I guess what I'm wondering though is what they can do to "screw me." If they sue me, that just costs them a bunch of legal expenses and they have no wages to garnish or assets to seize. They've already trashed my credit.
In their minds, what leverage do they have over me?
In their minds, what leverage do they have over me?
Wow! RVF is amazing. I'm glad this thread popped up today. A debt collector tried to serve me a summons friday for a car repo back in 2009. I pulled my credit last night I got a few charge offs and collections. The recession kicked my ass. I've spent the last 2 days researching all over the web. I was thinking about trying to pay everything off at a discount and clear up my credit. I am concerned about paying a debt collector when the original creditor shows the debt as a charge off. Painter - thanks for the links, I will read.
Quote: (12-11-2012 04:47 PM)caligula89 Wrote:
I guess what I'm wondering though is what they can do to "screw me." If they sue me, that just costs them a bunch of legal expenses and they have no wages to garnish or assets to seize. They've already trashed my credit.
In their minds, what leverage do they have over me?
You said it's a credit card and you have no assets like a house or property they can put a lien on so the odds of them suing you are almost zero. It's easier for them to sell your account and be done with it. Same thing for anyone who buys the account, they're buying it for half the value or less. The only leverage they have on you is the threat of a lawsuit and like I said, if they don't have a track record of suing debtors it's illegal for them to even threaten you with a lawsuit. The only thing they can do is keep calling you and sending letters. They may call your parents or relatives to try and track you down but if they disclose why they're looking for you to anyone else that's illegal too.
That being said, if they do decide to sue you, first they have to find you, then serve you with papers, and they have to sue you in the jurisdiction you live in. Think about it, they don't have lawyers on retainer all over the country and they're not going to waste time and money getting a judgement if you have no assets on your credit report. If they do sue and get a judgement and you don't pay it they still have to petition the court to put it on your credit report which takes more time and money. If it does get to that point it will appear on your credit report for ten years from the date you pay it off and that will fuck up your credit but that's the absolute worst case scenario and most credit card companies aren't going to do that unless you owe like $20,000 or more (and to get that much credit you have to have assets they can put a lien on on in the first place).
If you're worried about being arrested or something don't be, they can't. After the statute of limitations passes you have no legal obligation to pay anything. The only thing that happens is they keep calling and sending letters. They may talk tough and try to scare you into paying but if you don't want to pay it don't and in seven years it's off your credit report. It all depends what you want to do. If you go to the Amazon page for my ebook and just look at the table of contents in the preview it lists all the options you have.
They won't call my relatives if I actually pick up the phone, right?
Quote: (12-11-2012 05:06 PM)kenny_powers Wrote:
Wow! RVF is amazing. I'm glad this thread popped up today. A debt collector tried to serve me a summons friday for a car repo back in 2009. I pulled my credit last night I got a few charge offs and collections. The recession kicked my ass. I've spent the last 2 days researching all over the web. I was thinking about trying to pay everything off at a discount and clear up my credit. I am concerned about paying a debt collector when the original creditor shows the debt as a charge off. Painter - thanks for the links, I will read.
Kenny, I hate to sound like a salesman here but you're in the exact position of who I wrote the book for: You search all over the internet, hit up a bunch of websites and get a bunch of different information that's not always complete and one site conflicts with another. I tried to put everything you need to know about credit and collections in one resource and I think it's pretty complete. It would be awesome if you bought the book, you settle one account and it pays for itself many times over. If you have any specific questions definitely PM me.
Quote: (12-11-2012 07:25 PM)caligula89 Wrote:
They won't call my relatives if I actually pick up the phone, right?
Even if you pick up the phone they may still call your relatives. That's one of the ways they try to scare you into paying, by making you paranoid and preying on your ignorance of the law. But if they have your number and know they can reach you there it's illegal for them to call your relatives. If you can document stuff like that it's a $1000 fine (payable to you) for each offense. The ebook covers how to catch bill collectors and make them pay up if they use illegal tactics. Especially in your situation with a fresh debt, they'll cross the line if they think they might get paid. I can't tell you how many bills my collection agency paid off for debtors when we got busted breaking the law, it happens on a daily basis.
Quote: (12-11-2012 07:43 PM)painter Wrote:
Quote: (12-11-2012 05:06 PM)kenny_powers Wrote:
Wow! RVF is amazing. I'm glad this thread popped up today. A debt collector tried to serve me a summons friday for a car repo back in 2009. I pulled my credit last night I got a few charge offs and collections. The recession kicked my ass. I've spent the last 2 days researching all over the web. I was thinking about trying to pay everything off at a discount and clear up my credit. I am concerned about paying a debt collector when the original creditor shows the debt as a charge off. Painter - thanks for the links, I will read.
Kenny, I hate to sound like a salesman here but you're in the exact position of who I wrote the book for: You search all over the internet, hit up a bunch of websites and get a bunch of different information that's not always complete and one site conflicts with another. I tried to put everything you need to know about credit and collections in one resource and I think it's pretty complete. It would be awesome if you bought the book, you settle one account and it pays for itself many times over. If you have any specific questions definitely PM me.
I went to purchase it, but I don't have a kindle? Can I just download onto my computer?
Yes, kindle has a free app for any computer, mac, pc, ipad, or smartphone. Just download that and you can use it for any kindle book. Just google Kindle Viewer and whatever your platform is and it'll come right up.
60 Minutes did a story last night on the credit reporting agencies which you can see here:
http://www.cbsnews.com/8301-18560_162-57...-accurate/
They claimed there are 40 million errors on people's credit reports. It's a pretty spectacular claim but not unbelievable at all. They interviewed three ex-employees who worked in the investigations department who claimed they had zero authority to act on any of the paperwork consumers sent to them.
Basically what happens when you find an error on your credit report is you get all your documentation together and send it to the agency and they are required by law to conduct an investigation. The ex-employees were all in a foreign country and said all they did was make a notation on the account. I cover how to fix your credit report in my book but this is the first time you have employees saying they don't really do an investigation. The law says they have to update your report within 90 days after you write to them but it appears they are not doing that and the federal government is possibly taking action.
They also had an interesting story from a lady in Ohio who couldn't get credit because they were putting another person with a different name in a different states' bad debt on her credit report. She would order her report and it would show no debts on it but every time she applied for credit she was denied and they wouldn't tell her why. One day she met with a bank executive and when he left the room she looked at the credit report he had on his desk and discovered the credit agencies send a different report to businesses than they send to consumers and this one showed all these bad debts that weren't hers.
A simple, easily correctable error went on for years and years and basically tortured this lady because the credit agencies refused to go in their computer system and fix it. She had to sue them in federal court and eventually won an undisclosed, but I would assume large, settlement.
It was a fairly good piece, another reason to check your credit report regularly and also KEEP ALL YOUR DOCUMENTATION, especially stuff that says the account is paid or shows a zero balance. Even if you don't think you'll ever need it, stick it in a file somewhere. That way if it ever comes up you have proof.
The problem now is that it appears none of the credit reporting agencies are following through on investigations. In my book I make the point that Experian, Equifax, and TransUnion are not in business for customer service or to keep accurate records, they make a fortune selling these records to businesses and individuals at a premium.
http://www.cbsnews.com/8301-18560_162-57...-accurate/
They claimed there are 40 million errors on people's credit reports. It's a pretty spectacular claim but not unbelievable at all. They interviewed three ex-employees who worked in the investigations department who claimed they had zero authority to act on any of the paperwork consumers sent to them.
Basically what happens when you find an error on your credit report is you get all your documentation together and send it to the agency and they are required by law to conduct an investigation. The ex-employees were all in a foreign country and said all they did was make a notation on the account. I cover how to fix your credit report in my book but this is the first time you have employees saying they don't really do an investigation. The law says they have to update your report within 90 days after you write to them but it appears they are not doing that and the federal government is possibly taking action.
They also had an interesting story from a lady in Ohio who couldn't get credit because they were putting another person with a different name in a different states' bad debt on her credit report. She would order her report and it would show no debts on it but every time she applied for credit she was denied and they wouldn't tell her why. One day she met with a bank executive and when he left the room she looked at the credit report he had on his desk and discovered the credit agencies send a different report to businesses than they send to consumers and this one showed all these bad debts that weren't hers.
A simple, easily correctable error went on for years and years and basically tortured this lady because the credit agencies refused to go in their computer system and fix it. She had to sue them in federal court and eventually won an undisclosed, but I would assume large, settlement.
It was a fairly good piece, another reason to check your credit report regularly and also KEEP ALL YOUR DOCUMENTATION, especially stuff that says the account is paid or shows a zero balance. Even if you don't think you'll ever need it, stick it in a file somewhere. That way if it ever comes up you have proof.
The problem now is that it appears none of the credit reporting agencies are following through on investigations. In my book I make the point that Experian, Equifax, and TransUnion are not in business for customer service or to keep accurate records, they make a fortune selling these records to businesses and individuals at a premium.
Is there any way to get negative items removed from your credit? Do firms like Lexington Law that claim to do that actually work?
My bank account got really messed up by overdraft charges.
Obviously I am not going to pay that stupid fees.
If I just leave it negative, is it like not paying back on your credit card?
Obviously I am not going to pay that stupid fees.
If I just leave it negative, is it like not paying back on your credit card?
Quote: (08-06-2012 07:32 PM)painter Wrote:
Quote: (08-06-2012 03:43 PM)Fisto Wrote:
As of right now I'm current on all my payments. It's been tough but I've made them. So there's no one "handling" my account. Should I miss a payment first to start the settlement process?U
If your current on your bills then your credit rating is in good shape. If you want to save money by settling you have to stop making payments and that will hurt your credit rating. I wouldn't advise doing that if you can afford the minimum payments. If you can't afford it, pick one or two and quit paying, let 'em go to collections, and wait out the best deal. That will ding your credit report and lower your credit score so consider the statute of limitations in your state and how long that stays on your credit report.
I understood that debts are uncollectable after state S.O.L time expires...but can u then have it removed from ur credit report because of it?
"All My Bitches love me....I love all my bitches,
but its like soon as I cum... I come to my senses."
@ elabayarde - after the Statute of limitations in your state expires you are no longer legally liable for a debt, meaning you can't be sued in court or have your wages garnished or get slapped with property liens, etc, but the debt is still collectable. Collection agencies will still come after you for it and the debt will continue to be sold to debt buyers. On your credit report the general rule is that an item "falls off" after seven years of the account being closed or if it goes that long without a payment. If it doesn't you can petition the reporting agencies to do an investigation but see the post I made above about the 60 minutes episode where the insiders say it doesn't happen. Even after it's fallen off your credit report collection agencies will still be trying to get you to pay it off.
@ Sebastian - sorry for such a late reply, I don't know how I missed your question. Bank overdrafts are a major segment of collection portfolios, piddling little $75 charges. Depending on the amount, it's quite possible this isn't even on your credit report and they're just hassling you with the calls. That's how they get these paid, they call you every day.
@ TheBMan - I know I addressed this in the post on the 60 Minutes story. Don't know about Lexington Law Firm but I'd bet they're just scammers, how much does it cost? They won't do anything for you that you can't do yourself. My book spells it all out:
http://www.amazon.com/Beat-The-Bill-Coll...B009PPKDVW
Keep in mind that 60 Minutes has reported that the credit reporting agencies investigations departments are located overseas, have no authority to take action, and don't do much more than look at what they get sent and mark it.
@ Sebastian - sorry for such a late reply, I don't know how I missed your question. Bank overdrafts are a major segment of collection portfolios, piddling little $75 charges. Depending on the amount, it's quite possible this isn't even on your credit report and they're just hassling you with the calls. That's how they get these paid, they call you every day.
@ TheBMan - I know I addressed this in the post on the 60 Minutes story. Don't know about Lexington Law Firm but I'd bet they're just scammers, how much does it cost? They won't do anything for you that you can't do yourself. My book spells it all out:
http://www.amazon.com/Beat-The-Bill-Coll...B009PPKDVW
Keep in mind that 60 Minutes has reported that the credit reporting agencies investigations departments are located overseas, have no authority to take action, and don't do much more than look at what they get sent and mark it.
Quote: (08-13-2012 04:14 AM)houston Wrote:
Student loans - should I contact the school and tell them I can't pay it right now? They have sent me 2 letters already and I seriusly can't pay it off.
Honestly I feel like men are supposed to honor their debts. I'm not busting y'alls chops over some moral code as I'm no saint... it seems really beta to worm out of debt. How can this not effect your overall psyche and feeling of self worth?
That's interesting....anyways, I had unexpected charges and didn't know there wasn't enough money.
(these days, if there is no money, it will just decline for personal debt card)
I kept using it for small amounts $2~5 and it declined after using it several days.
They said the rule is different for Business debt card. They will let you use it for several days.
I have to pay close to $500 for $50 I used. I think I am going to say 'fuck it'
If you have personal debt card, you don't need to worry about it though.
(these days, if there is no money, it will just decline for personal debt card)
I kept using it for small amounts $2~5 and it declined after using it several days.
They said the rule is different for Business debt card. They will let you use it for several days.
I have to pay close to $500 for $50 I used. I think I am going to say 'fuck it'
If you have personal debt card, you don't need to worry about it though.
Quote: (04-17-2013 05:12 AM)painter Wrote:
@ Sebastian - sorry for such a late reply, I don't know how I missed your question. Bank overdrafts are a major segment of collection portfolios, piddling little $75 charges. Depending on the amount, it's quite possible this isn't even on your credit report and they're just hassling you with the calls. That's how they get these paid, they call you every day.
Man, that's one of the worst scams, $500 in charges for $50 overdraft. I think all that got changed by Dodd-Frank... they at least have to let you know what the penalties are now. See if it's on your credit report first, otherwise I would try and settle it for 10% or less. Once it goes into collections it never really goes away...
Quote: (04-17-2013 05:31 AM)MikeinMKE Wrote:
Quote: (08-13-2012 04:14 AM)houston Wrote:
Student loans - should I contact the school and tell them I can't pay it right now? They have sent me 2 letters already and I seriusly can't pay it off.
Honestly I feel like men are supposed to honor their debts. I'm not busting y'alls chops over some moral code as I'm no saint... it seems really beta to worm out of debt. How can this not effect your overall psyche and feeling of self worth?
This is a good point. Some people are scammers and don't care. I had one guy who bought a house then spent $15 grand furnishing it and never paid a dime, total scumbag. Other people run into bad luck, get sick or injured, things beyond their control.
In either case they will be dealing with bill collectors forever, mailing them letters and calling every day. I've had people pay 20 year old accounts off because they couldn't stand the calls anymore.
Trust me, a guy who can pay his bills and doesn't take care of his responsibility knows he's being a scumbag.
I have the money to pay all of my debts ( which is only like $500 total) but I don't know if I want to since it won't do anything for my credit. I don't have a lot of money, and paying them would feel like throwing my money away. I actually paid one about a year ago, and it lowered my credit score because they put another KD when I paid them. you would think they wouldn't want to disincentivize paying them like that...
My medical bills (>$500) went into collections a couple months ago and was report to credit bureau.
If I pay the bills, how can I get that mark off my credit report??
I am in Texas which I know is a pro-debtor state
If I pay the bills, how can I get that mark off my credit report??
I am in Texas which I know is a pro-debtor state
@ Muk - If your debts are under $500 and you can afford to pay them I would do it. Not knowing any details I would settle them for as little as possible. Even if it dings your credit in the short term your credit report will show your accounts are paid off. That means you qualify for better interest rates which saves you money and in the long term your credit report and credit score will improve. Plus you won't have annoying bill collectors bugging you or your family or your work.
@ swshrsweet - The account will be on your credit report for seven years from the day it's paid. There's nothing you can do to have it removed, you just want it to show that it's been paid and there's a zero balance. If it's in collections now your best bet is to settle the account for the least amount you can negotiate. Being from Texas should help you get a low settlement.
@ swshrsweet - The account will be on your credit report for seven years from the day it's paid. There's nothing you can do to have it removed, you just want it to show that it's been paid and there's a zero balance. If it's in collections now your best bet is to settle the account for the least amount you can negotiate. Being from Texas should help you get a low settlement.
Quote: (04-17-2013 05:31 AM)MikeinMKE Wrote:Dude shut the fuck up. I never said I was trying to weasel out of paying them off, I asked what I should do if I can't pay it right now. I've already paid most of it off after I called them up and told them what's going on.
Quote: (08-13-2012 04:14 AM)houston Wrote:
Student loans - should I contact the school and tell them I can't pay it right now? They have sent me 2 letters already and I seriusly can't pay it off.
Honestly I feel like men are supposed to honor their debts. I'm not busting y'alls chops over some moral code as I'm no saint... it seems really beta to worm out of debt. How can this not effect your overall psyche and feeling of self worth?
Quote: (04-17-2013 04:22 PM)painter Wrote:
@ swshrsweet - The account will be on your credit report for seven years from the day it's paid. There's nothing you can do to have it removed, you just want it to show that it's been paid and there's a zero balance. If it's in collections now your best bet is to settle the account for the least amount you can negotiate. Being from Texas should help you get a low settlement.
Thats what I didnt want to hear. I feel like an idiot now for dodging the hospital instead of setting up a payment plan. Oh well, I guess you live and you learn. Thanks for the advice.
Your credit score and your social security are the only things that matter in America.
I’m surprised no one has mentioned that the first thing you have to do is demand a debt validation because the collection agency may not even be legally entitled to collect the debt from you. Never acknowledge or make promises to pay a debt without a getting the debt validated, even if you know you owe it.
I had debts before and paid them off, but afterwards, I kept receiving these letters in the mail that I owed some $9k, and it turned out it was all bullshit. Wrong account number, the agency had a record of fraud, just a PO box address, constant offers to settle within the next 30 days when the letter was more than 30 days old, etc. I sent a letter demanding validation and received an obviously bullshit validation letter (a sheet of paper saying I owed $9k), as the website I’ve linked below warned. I disputed it in another letter saying that it wasn’t legitimate proof and demanded the proof that I owed the debt, that they have a right to collect, how the $9k figure was determined, etc. Never heard from them again. I believe they put it on my credit report too, so if it's there when I check, I'll need to threaten to sue if they don't remove it.
If a creditor can't validate a debt:
* They are not allowed to collect the debt,
*They are not allowed to contact you about the debt, and
*They are also not allowed to report it under the Fair Credit Reporting Act (FCRA). Doing so is a violation of the FCRA, and the FCRA states that you can sue for $1,000 in damages for any violation of the Act.
Creditinfocenter.com
This site has a lot of great material, including how to settle, and a forum for you to ask any questions on. Sample letters are also provided.
I had debts before and paid them off, but afterwards, I kept receiving these letters in the mail that I owed some $9k, and it turned out it was all bullshit. Wrong account number, the agency had a record of fraud, just a PO box address, constant offers to settle within the next 30 days when the letter was more than 30 days old, etc. I sent a letter demanding validation and received an obviously bullshit validation letter (a sheet of paper saying I owed $9k), as the website I’ve linked below warned. I disputed it in another letter saying that it wasn’t legitimate proof and demanded the proof that I owed the debt, that they have a right to collect, how the $9k figure was determined, etc. Never heard from them again. I believe they put it on my credit report too, so if it's there when I check, I'll need to threaten to sue if they don't remove it.
If a creditor can't validate a debt:
* They are not allowed to collect the debt,
*They are not allowed to contact you about the debt, and
*They are also not allowed to report it under the Fair Credit Reporting Act (FCRA). Doing so is a violation of the FCRA, and the FCRA states that you can sue for $1,000 in damages for any violation of the Act.
Creditinfocenter.com
This site has a lot of great material, including how to settle, and a forum for you to ask any questions on. Sample letters are also provided.
Quote: (04-18-2013 04:44 PM)swshrsweet Wrote:
Quote: (04-17-2013 04:22 PM)painter Wrote:
@ swshrsweet - The account will be on your credit report for seven years from the day it's paid. There's nothing you can do to have it removed, you just want it to show that it's been paid and there's a zero balance. If it's in collections now your best bet is to settle the account for the least amount you can negotiate. Being from Texas should help you get a low settlement.
Thats what I didnt want to hear. I feel like an idiot now for dodging the hospital instead of setting up a payment plan. Oh well, I guess you live and you learn. Thanks for the advice.
Your credit score and your social security are the only things that matter in America.
I should have asked, have you confirmed this is on your credit report? If so, don't feel like an idiot, it was on there anyway. If you can't pay it off at once or get a settlement then negotiate a payment plan, a collection agency legally has to accept whatever you offer them, even if it's $5 a month. If they don't accept that or hang up on you then they've violated the law and if you can document a violation it's worth $1000 to you...
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