Busting Myths: "NEVER Pay a Debt Collector" 

lextacy2008 lol

I agree 100%

Read terms and conditions on your statement. Every time. If someone tells you something if you don't believe, chances are it's in fine print, which IS NOT illegal. It's just common sense. Like he said , debt is not less valid because you didn't know about the terms you signed up for

@@freddygonzalez1955 yrs ago like 20 yrs ago I had a Discover card I didn't pay because I lost my job laid off. The debt was over $6000.00 and they sent to collections and threatening phone calls but they did not take me to court. It came of my credit 7 yrs and 2 months.

If your a year behind try to pay it and make a deal they will remove the negative Mark's on credit report, get in writing. If it's been 4 years or so just wait for it to come off in 7 yrs. Just don't make the mistake again. Learn from our mistakes.

Dont pay , dont ever answer the phone

Then why haven't you? You should have paid it before it went to collection.

So you like to be financially irresponsible.

And they will and then you will never read it and won't pay anyway because you don't like paying your bills you moocher.

He is a collector agent... like on their side when it comes to mindset...

They don’t sell debt the other people just buy the debt 😉🔫 ok debt buyers .. agree w u John

How? Pls share

They do not have to provide the original contract. The threshold for validation is low enough to trip over. They do not have to answer you in 30 days. You are referring to debt that is sold, but the vast majority of debt today is not sold. It gets sent to different collection agencies to be sure, but the credit card bank retains ownership. Recent OCC guidance (2 years ago) to banks selling debt is to pass on the media needed for the purchaser to prove their claims.

Yes I was referring to debt that was sold. I wasn't sure about a copy of the original contract, but I do recall that they must name the original creditor if it had been sold multiple times, and the date the last payment was made which would show the default date and the amount at that time. They do not have to answer within 30 days, but I believe you must dispute the debt or ask for debt validation during that period of time which is what I meant. Otherwise they simply state that a notice was mailed to the last known address of the debtor and no response was made so they claim they met the legal requirements.

Hello Brother, Did you go to court by yourself or some legal firm represented you.. I'm going through similar situation but I'm from Toronto, Canada.. Any advice pls.

@@ram0210 a lawyer. Not sure how Canada works. Check the original contract first. Also if you don't owe to much just pay it but get a written statement from collections first saying it will be deleted from your credit report. But I would talk to a lawyer first and get the best advise you can. Love Canada by the way. Spent about a week in Calgary, for the Calgary stampede

You got lucky bro. That debt collector dropped the ball, and is definitely an anomaly. Most of the better (or worse) collectors are not that careless. People like Calvary Portfolio or a few others will have all the media, contracts, etc, in order to successfully sue you. If you ignore debt, or not pay it, you're rolling the dice. Sometimes you can get lucky and get out of the mess scott free, but other times, they wills screw you to the bone.

Most people dealing with legitimate collections are looking for solutions to the problem. These videos are focused on helping people trying to resolve real debts. You mentioned fake collection scams, which are , unfortunately, a real concern. Here is a video covering the topic: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-8Et7HlitGF4.html I also have an article about that here: consumerrecoverynetwork.com/question/debt-collection-scams-fakes/

It's not uncommon to contact a person with a matching name, normally a few verification questions related to an account will let the collector know if he/she is actually speaking to the right person. In some cases, a collector can assist you in exposing fraudulent activity in relation to an account and at least point you in the right direction to help you.

+Sarah Divinetrix Jumping on MB's points, that's exactly the truth. As I posted in another reply, just because that's true for you doesn't mean that's true for others. I had collectors contacting my ex wife, my job, old roommates, and they were all for legitimate debts that I owed years ago. It gets old hearing from people like you who have these "Specific" experiences with collectors, and that you feel like that's the truth for everyone. Even in the collections industry, they can reach farther than others in their own field. Which means you may have a debt sold to a smaller company who doesn't necessarily have the resources to "skip trace" and find you, yet another debt is sold to a company who does have those resources, and you find that they are hunting you down like a wild animal hunter. It all depends on the situation. It's not a one size fits all, and all debts are sold to one collection agency that behaves in the exact same manner. Even with the FDCPA act laws, some collectors still harass and threaten. If the advice Michael gives doesn't fit your situation, it doesn't mean it doesn't help thousands of others who are in collection situations different from yours.

Because he is one ctfu and he only speaking of rare cases

You're generally right but what he's telling you is as somewhat of the truth but he's holding back a little bit it's like throwing a ball but holding back a little bit it's the oldest f****** trick in the book

No, and never have been.

I was literally about to comment that same thing 😂😂

Debt is money. Why do you have to pay? If you want to pay, pay. If you don't, then don't. Governments don't pay there debts why should we?

@@crbarnes001 I feel that

Exactly, listen to this wizards magic words when discussing this: 'they sold your debt but that doesn't make it less valid'. Yes, the debt may still be 'valid', but that doesn't mean that you have to pay the debt purchaser as you have no contract with them.

No, you don't have to pay. They are not forcing you to pay ..but again, it's still YOUR debt. You owe it. Don't pay it? Want to cuss your collector who's just doing their job.?? Well in 6 months when it's on your credit report....well, your problem. Don't call the company who tried for months to collect and yell we reported negative remarks. Don't give a shit about your credit? Well, try and buy ANYTHING on credit again once you have a charge off...good luck!

And no...it's not pennies on the dollar. Idk why ppl say this...it's the dumbest shit I've ever heard. Actually late fee equal to $27-$38 per late fee, and no, even if you pay a day late, we could give a shit less your a good customer all year, there will be a late fee....we won't remove EVERY LATE FEE because your entitled ass thinks you deserve it. If you do, then ask nicely, if we can't, then take it and move on. So there will be late fees and interest which can be higher than that, adding up each month...THATS what collections gets, and we add fees and interest until it charges off and is an uncollectable debt...we don't add money, or get a 'quota' for getting so much money a day. Pay your bills and this fight won't be a big deal. I've been a collector for over 5 years, and I'm good at my job. I'm not a scammer, I could give a damn less if you pay it not...but SOMEWHERE out in the world there are ppl who actually appreciate we call when they are late. No, no we do not sell your account pennies on the dollar...it's the same you owe when we get it as when it left the original office.

@keristen you know you can pay a credit repair company to remove that collection right.

@@madilynandujar163 you actually can, but they can take up to 6 months to get all the accts straight Meanwhile it's showing your past due until almost charge off date at 180 days. So they won't be able to remove that, and if they can during that six months the damage is done to your credit. Most bureaus won't remove a negative temark because you consolidated. You can start a PMT plan even when your not past due.I think those companies are scams to make money off you. They take 15% on top of all your "consolidated debt" when honestly most of your credit companies can do these plans and settlements for free to help you. Instead of paying someone else to get you the same thing.

I would ask that of a tax pro. But I am sure they can add any money they receive as an offset and account for that in a follow up filing.

Gwen Davis every company has an expense account for bad debt; they can record it when it happens or do an estimate monthly (ex. 5% of total debt is deemed uncollectable.) Most company do the estimate and write off that entire amount each year, doesn't matter if they have "uncollected debt" to apply. If they do collect that amount the following year, then they do an adjustment to their books the following year to pay for the taxes for the amount they collected.

Exactly! Once written off, it's gone! The non-payment will remain on your credit report but that only comes into play if you try to get a loan to buy a house - with a low annual income. If you have a good job now (consider yourself lucky due to this virus thing), that is more important to a bank than something you didn't pay several years ago. WE bailed out all of these banks in 2008.. so literally, they owe US.

Are you saying that in reference to the SOL to sue resets the SOL like I mention, or that paying a 3 year old debt gives it 7 new years of credit reporting some how? It does not. A paid tax lien would do that. Most any other debt would not.

It boggles my mind that Eddi Haskell wrote what he did when you specifically stated the opposite in the video, as you confirmed in your reply.

Eddi seems lost, I agree with Bovee

I know that's true, Eddi Haskell. It happened to me in 2001 paying on a charged off account and it stayed in my credit report until 2008.

You're spreading misleading information. The date of first delinquency is hard set in stone. No one can reset it. Paying a tax lien is the only thing that will reset the date. FCRA act specifically states that it is 7years from date of first delinquency, not last activity on debt. Ive no idea where you people get that from.

Marshall can you be a little more detailed. What do you mean "no contact, contract was cancelled"

If you get a call and then reply with, I don’t have a contract with you, then you might not have read the contract from the OG creditor where you agreed that if lapsed and/or unpaid you would be sent to collections. Not only that, but the OG creditor is still actively involved in retrieving their money from you. Which means you will be provided with the OG contract you signed with highlighted fine print mailed from the collection agency. Stay on the phone. Prove your point. Get to the bottom of it. Hanging up does nothing.

That doesn't erase the debt, all it does is push it off the. Eventually it will come back , because you opened an account you had a contract, dont matter if it was signed physically most places now dont do physical signature contracts, they have you sign electronically etc. This is just a cheat tactic to try and avoid debts and it doesn't work when you actually did have a open account with a company

It depends on the state, but yeah, mostly they are.

Adding any new amount of time to credit reporting is a violation of federal laws that limit how long negative items can appear on your credit. There are limited exceptions, such as a tax liens. What was this debt about? You mentioned the state.

Pete Tetso M

They committed fraud and you should have them investigated.

Actually, we can use disability and other forms of voluntary payment from any sort of check. We cannot legally collect from that source of income, but we can take you to court and propose a certain amount each month, called garnishment....and if not a collectable source of income, then it charges off, you have bad remarks on your credit card and they won't approve you for a loan ever again.

@@scottchristianson7599 i settled it before it got sold so there is no collection it shows up settled for less charge-off. as for as the charge-off im under the expression 6 years and 10 more months from now it falls off. because it's 7 years from charge off. i hope i worded it correctly.

Talk with an estate attorney about whether your mom can still be impacted by the bill. Also ask about any impact to you, but I sincerely doubt you have any.

If your question is : Am I responsible for my fathers debt?? then the answer is : no

Nancy Davieau yup ., I had a lawyer that recommended chapter 7 over 16k and my annual income is like 60k and I only had 3 balances 🤦‍♂️then I asked . If I do go with it am I good to do anymore spending ., she it the debt doesn’t matter because it gets wiped . But I did my research and realized that I would have been screwed trying to take that to court and ask for a chap 7 when I racked 7 k in 3 months of working with the lawyer 😫

Why don't you site the ways in which they will disagree? Unless you're a lawyer, you're pretty much just a keyboard warrior without a clue.

@@cancarriz why should they have to prove something to you? Was that comment directed at you?

@@mannyrodriguez3933 Was my comment directed at you? No? Then don't worry about my retort to someone else.

@@cancarriz was their comment directed at you? So why are you picking on people for no reason? If you are curious about something just ASK like a normal human being instead of calling people "keyboard" warriors. I mean what are you 12?

Who is the original creditor? Who is the new debt owner if the account was sold? Who is the current collection agency offering the discount?

Just ride that out stop contact

@Sherry Gustafson I tried that once, when I wasn't even aware something had been sent to collections. They said they weren't allowed to accept it, because the debt was sold, and owed to the collection agency.

Can you be more specific about the situation you are dealing with?

Were these medical debts or something other than bank loans or credit cards? I highly recommend what you did when dealing with medical debts that were sent to debt collectors.

And it is legal to pay the original lender no matter what because they are who you took out the loan or credit card with. Your info is still in their system, which includes the amount owed.

You are 100% it is everyones legal right to only deal with the original.

I couldn't agree with you more! I studied the statutes of my state and compared to what he's talking about, he's leaving out a whole bunch of fact! Plus, he's only talking like the whole subject matter revolves around credit cards when there's all kinds of debt!

Serendipitous One i have an active collection account and the original creditor is T-Mobile. I am getting calls from a collection agency to setlle the debt. what would be the course of action?

Charge off is an account function. Debts are collectable after a charge off. Trying to collect on a debt after charge off is normal and not a violation. Here is more about credit card charge offs: consumerrecoverynetwork.com/charge-off-and-credit-card-debt-what-it-means-to-you/

Michael, don't they get paid out by their insurance co.s when the charge off occurs. If so isn't that double dippping?

@@djmoreno1100 this is what they all do. Any financial assets are insured by the bank issued. So it it 2X dipping. And see how its all credit that was supplied by your signature means u dont owe anyone anyways. Just because its an accepted practice doesnt means that its legal.

@@aredubbz bullshit. Banks take a risk of loss when they lend money. Even if they have insurance for a bad debt, the insurance company will then have the right to come after you for the debt. They will sue you in the bank's name to do it. Same thing if you are at fault in an auto accident, and the other driver's insurance covers it. They can come after you to recover what they paid. It is called subrogation. There is no double dipping.

Untrue, charged off and being sold are separate things. He clearly explained this, you had a contract with the original company and even I'd it was sold that doesn't change the fact it's your debt. Like it or not its gonna end up hitting your credit and rightfully so if you decide you won't pay your bill . It's so simple. If you domt want to pay the bill you don't open the account. .. his us that hard to get? And again that statement is false, collections is not the same as debt buyers which again he clearly explains in the video

If you are sued, a lien could end up being filed against the home. I would want to settle with creditors and collectors that are the most risky to sue, and prevent that. Who are your creditors?

They generally are not going to drop it from your credit reports, but update it to show paid, which will still allow for improvements to your credit and options for financing.

Michael Bovee So should I pay it in in full or the discounted options they gave me?

An account this old will not matter much whether you pay in fill or take the deal. For that reason, if it were me, I would take the deal.

It's always going to negatively impact your credit. You're better off investing the money you would spend on paying it off, in a loan, or other forms of credit building which will positively impact your credit. I went from 590 to 712 only with secured cards, self lender loans, eventually normal cards, focusing on low utilization, all while having 3 hits on my credit, ATT for 600$, Comcast for 300 something and a 60$ from some random company. Round 1k in debt. Yet I was able to get into 700s despite not paying them. Two of them write off next year in June and while I focus on building credit further in the meantime, I'll only be better off in June of next year all without blowing 1k on some random debt company on behalf of original debtors.

leoleonardo good shitt!

Lol hope you never have an accident where you lose that cash car or your happy home, but to be honest medical bills typically dont harn your cbr

You hate being financially responsible? Man that sucks for you.

Can you rephrase the question, or share some details about your situation and goal?

Hate to burst your bubble but that's not a very long time in terms of debt collection.

Returns from where, the clouds? lol

WeLikeItLikeThis really? You obviously don't believe

Yes I do believe! But it got my point across

What did you tell them like what were your reasons ? If you don't mind me asking.

In both cases I refused to pay the bills because of the actions of the creditors. The first one was the Canadian Imperial Bank of Commerce who my ex husband worked for as a bank manager. When I left him, he forged my RRSP's (K 14's I believe they're called in the US) He then deposited them into our joint account he told me he'd closed, then withdrew the money (over $8000) When I found out the bank told me that it was between me and my husband. NO! Their employee commited fraud and they didn't do anything about it. I ended up having to open another account with them so he could pay child support. Ten years after, he decided he wasn't going to pay anymore, which left an unpaid $500 overdraft. I refused to pay, telling them I wished I owed more. Second one was a legal aid lawyer I was using during my second divorce. He wanted me to settle for $450,000 less than I was entitled to from the business my ex husband and I owned, and I refused to. We were going to trial in a few days, and he told me he wouldn't be my lawyer if I didn't settle. I said fine. The day of the trial, he called up my ex's lawyer and gave her false information which the judge believed. I haven't heard from either of these creditors again, and it's been over five years, nor is it on my credit score

This is true. Filed in April 2018, and my credit score is already above 750.

This is horrible advice

If it is a legitimate fee that you would typically be charged, I am not letting my credit take a hit over 14 dollars, or because a delivery guy did not follow standard procedure.

@@MichaelBovee I definetly agree with you on the $14.00, not worth the hassle. I "can't" believe a collection agency is trying to collect a $14.00 debt! That's almost funny! Thanks for the advice.

Are you going to set up a payment plan or settle the account for a lump sum? When did you receive your court papers?

That is preposterous. What gave you that impression? Check out this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-y_TOcykYMKQ.html

+Adam links, yes they in fact do. I know that for a fact because I have a debt collector who asked me a few detailed questions about items on my report. The contract they purchase from your original creditor gives them every right to pull your credit report on demand. Nothing you can do about it. You should do some due diligence before you accuse experts of lying.

An attempt to collect a debt is permissible purpose for a debt collector to access your credit report. Debt Collectors indeed have access to credit reports, legally. How do you think they find your new phone number magically after an inquiry?

As consumers become more educated over time many are more than willing to schedule payments with debt collectors based on the fact that they have the power to remove them from your report when the debt is satisfied and can update them as needed. So they absolutely have access to your report.

Thanks for the info!

In most states, a debt that has gone unpaid for 6 years, is passed the SOL to sue. I personally would be unlikely to pay or settle a debt passed my state SOL unless it was on my credit reports for a little while longer, and I had major financing goals, like a home purchase to make, and prior to the account falling off my credit after 7 to 7 and one half years from when I stopped paying.

let it just drop off.

You will want to get your loans out of default. Here is the information you need to get started: studentaid.ed.gov/sa/repay-loans/default/get-out

Yup. More like a lottery ticket that costs the same as a sports car or more. For every one "success" story I've heard with student loans, I've heard 5+ of people drowning in debt with jobs barely able to pay the payments. Sad. I'm glad I never got hooked into that bullshit.

I would call Citibank and find out. Let me know what you learn.

Thank you very much for your response. I will let you know.

Based on todays date, Citibank is not doing a lot of suing themselves, but they sell to debt buyers that sue. Capital One sues a lot. You typically cannot get a mortgage through with unpaid collection accounts (limited situations with FHA/VA are exceptions) on your credit, or with unresolved judgments that may not appear on your credit, but are still visible to mortgage lenders. What are the balances owed on each account, and who is collecting on them currently (collection law firm/debt buyer)?

If you have a legitimate debt and are worried if a collection agency contacting you is legit, you can call the creditor and ask who they placed, or sold your account to.

@@MichaelBovee Hey, thanx for the advice.

Call the number on the back of your card and ask for info on last call. It should always give a time even if you hung up. And they can give you info about you only your collector would know such as last purchase and amount. The St name you live on, year you were both, things like that. What bank you have on file if you have one, but only after you verify a few things because we legally cannot give out your personal info

Kirsten Hoyle hey, thanx man.:-)

A charge-off will damage your credit rating. I was listening to this on a different Channel and one of my bank Representatives talk to me about that. Don't think a charge-off is a loss on there and it's also a loss on your end especially if companies want to see your credit report before hiring you. I'm also told that you have to pay the tax on the money they charged off because the IRS considers that income. Verify that please because I'm guessing based on what I was told by bankers who talked way too fast and have loaned out way too much money to way too many people.

If you sign on for the liability it is likely a legitimate debt. I would talk with a local defense attorney about any options you may have.

You would want to get the settlement in writing before you pay. Attorneys in the middle of litigating a case are typically just as eager to get things in writing as you are.

How long have you missed payments? What is the balance? Who is the bank? What is your goal?

Talk to an experienced moving violations attorney in your state about all of your options.

No. Check out this article about charge off: consumerrecoverynetwork.com/charge-off-and-credit-card-debt-what-it-means-to-you/ Charge off is just the beginning of collection.

What is your goal for dealing with the debts?

Who is the creditor?

The creditor is LoanMe. Not sure if you've heard of them, but they're a high interest internet personal loan company, akin to Rise or CashNet.

If it were me, I would wait for the account to get placed with a collection agency or debt purchaser and negotiate the settlement then.

You do, but those options often yield different outcomes.

Who is the creditor, and collection agency involved? What is the dispute about?

I would like to dig more into your situation by phone. You can call me at 800-939-8357 ext 2.

Michael Bovee Id like Help too

I have an article dedicated to Synchrony here: consumerrecoverynetwork.com/resolving-debt-synchrony-bank/ and a video up too: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-MHs11M0zRAE.html They do settle before charge off much the same as other credit cards. There can be objections to overcome when you are trying to settle a single account while keeping others current, but those can be overcome.

A co-signor can be on the hook for the loan legally as well. When we cosign we are telling lenders we will pay if someone else cannot. Was there a lawsuit filed already? I am concerned with a debt collector telling you they will garnish if they did not, or could not file a lawsuit to collect. When did payments st3op on the loan originally? What state are you in?

No they can not

What you describe is zombie debt, which I cover more here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-AehXi8m3IT4.html If I cannot be sued and do not have a credit or finance goal I am trying to reach in the foreseeable future, I personally am telling debt collectors to pound sand. If I can no longer be sued, but think I may have credit goals, like buying a home, before the items age off my credit, I am going reach those goals, and likely resolve unpaid debts for less. If my debts are unpaid long enough to pass the SOL to sue, and have aged off my credit after 7 years, I am sending cease communication letters in reply to any further collection efforts.

Check out this post about settling when sued: consumerrecoverynetwork.com/question/can-you-negotiate-and-settle-a-credit-card-debt-if-you-are-being-sued/

I would talk to an experienced consumer law attorney in your province about this.

I have received good feedback from people whose medical debts were not sold off to debt buyers, having given payment to the service provider, and circumnavigating the collection agency. This is often the payment path chosen to circumvent the collection agency in order to dispute them off your credit reports. But yours are not reporting. I would still work around the agency if it were me. Also know that paid or settle medical bills are not the impact on our credit they once were (just in case these show up before you can deal with it).

Michael Bovee Thank you so much! I truly appreciate the advise.

Can you tell me who you stopped paying and when? And does that creditor still show a balance as owed to them on your credit reports? In many situations, the creditor is still reporting an unpaid collection owed to them, and each collection agency they send it to will not show an additional collection item. Other times, the creditor may sell the account and the new owner of the debt will show collection item owed to them.

Me, too; this happened to me after the insurance company I worked for was taken over and I was let go. I had trouble paying my bills, I used to get collection calls, and I can tell you, this is not one bit pleasant. I got a windfall after my father had passed on, and I was able to settle these debts for less than what they were worth.

Cheryl Keil ye, I know. There was this small loan that I owed about $800 on. Called the creditor and was ready to pay the full amount, but it was too late. They already sent it to collections. I contacted the collection agency and was able to settle for about $400. $400 was less than the amount I borrowed. So, I actually made money.

I never saw anything weird on my credit score. I was just trying to make the other person pay but never happened. Should I be worry?

Unless the collection went to court years back, this would be zombie debt that cannot really impact you. More on that in this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-AehXi8m3IT4.html

If you do not have an agreement in place it is fairly common for some agencies to push for larger payments.

Check out this article on collection scams, as that is likely what you are dealing with: consumerrecoverynetwork.com/question/debt-collection-scams-fakes/

He can threaten all he wants, but he's need to get judgment from court. 9.99999/10 he will not do so. In other words he's FOS.

I doubt the arbitrator will follow along with redemption theory.

I have been trying to find answers to the same question. I had a baby in January, which more than doubled our debt, which *was* down to only my husband's student loans.