And then of course there's the double-whammy: when your bank sells your account to a debt buyer, and the debt buyer assigns it to a collection agency! Madness! Awesome vid as always :D
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Hi Michael, Love the content! Just had a question. I have a debt of about $7,000 with a collections agency and at this point it's been months past the due date (had some phone calls back and forth when the collections first reached out), I was thinking about whether it would make sense to negotiate at this point and whether it's too late? I'm just afraid of the agency suing all of a sudden seeing as I'd be asking to negotiate a lower payment amount or resetting the clock if we wrote to them asking to negotiate a settlement. Alternatively I was thinking if it's not worth the hassle and just ignore it until the 7 years is up and pay it then if I have the chance and it falls off my credit by then? (I am a student in college and cannot really afford to pay them 7 grand right now) Thanks!
Who is the original creditor? Who is the collection agency? You are often at risk for aggressive collections based on your state rules the limit how long you can be sued for a debt. If you are passed that time it can become an easier decision to just wait the 7 years for credit reporting clean up. What state are you in?
@@MichaelBovee I really appreciate such a fast reply!!! The original creditor was an apartment lessor (broke contract to leave since conditions were terrible) and collection agency is a collection bureau (Advanced collection Bureau). Resident of NH but debt incurred in PA where the apartment was leased.
Thanks. There appears to be a 4 year SOL to sue for a broken lease in New Hampshire. They have plenty of time to do that. You can often negotiate with the collection agency to pay less. How long will it take for you to pull together half the amount?
Hi Mike, thank you for another very helpful video, sharing knowledge extremely hard to come by! Thank you for continuing to help so many at the worst times in their lives. Your advice was key years ago, and now something entirely unexpected and horrible just happened: After having successfully fought a debt collection lawsuit for just under $12,000, which was finally discontinued in March 2020, a debt collector I’ve never heard of (Ability Recovery) just entered this same amount on my credit report, plummeting the score I’ve worked so hard to raise, down 59 points. The original creditor was Citibank. I had to stop paying in March of 2017 and haven’t touched that since, then they sued and could not validate the debt. A low-income non-profit helped me to fight this in court. How are they permitted to enter this same amount on my credit report? They have not mailed me a thing. I look forward to your advice. This is extremely depressing, including because I have $0, am just barely getting by. Thank you for your help again.
I would talk to the law firm that helped you prior to get their feedback. The lawsuit being dismissed often does not have anything to do with continued credit reporting, and that can include later purchases of the account by different players.
@@MichaelBovee Thank you for your reply. I reached out to the non-profit legal organization and found they no longer exist, closed due to Covid challenges. Since the debt buyer was not able to validate the debt in court, wouldn't it stand to reason they are not able to validate the debt to a credit reporting agency like Transunion? Thank you for your help. This is incredibly depressing.
...following onto the question above, isn't this now past the new statute of limitations to collect on an old debt (Citibank charged that off in 2017, or no later than 2018)?
The SOL you refer to has to do with bringing a lawsuit to collect. That amount of time is determined by your state. It does not typically apply to collection efforts outside the courts, though after a time these do become zombie debts. More on that here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-AehXi8m3IT4.html I know where you are coming from on wondering why they get to credit report if their suit got dismissed, but it is commonplace for credit reporting to be an entirely different experience. You may want to talk to an experienced FCRA attorney in your state. You can find some through the National Association of Consumer Advocates.
@@MichaelBovee Hi Michael, thank you for noting that a debt buyer bringing a lawsuit and a debt buyer entering it onto a credit report are two separate processes. Your video on Zombie debt is very helpful. The new debt buyer has not sent me anything in writing. I’m in NYC, by the way. If the debt they entered onto my credit report is the same that the court dismissed, and though they could not validate the debt in court, if they are able to convince the credit reporting agency that the debt is mine, if this is the account that has had no activity since March 2017, does this mean it must be removed 7 years since 3/2017 even though they just entered it onto my credit report now? Can the credit reporting agency be forced to comply with that 7-year timeline? (I’ll start searching the National Association of Consumer Advocates next week.) Thank you again for your help.
Hi! I saw a video on your channel how to locate debt collectors when it's been awhile. Can debt collectors lie and say you still owe them or they legally have to be honest on who they sold it too
They should not lie and say they are collecting on your account if they are not. Your creditor is typically going to be transparent about who they sold your account to. Most debts are not sold, but simply assigned to collection agencies. Who is the original creditor for your account? Who is the collection agency at issue?
If the statue of limitations has run out on a loan does that mean the debt collect can’t come after you? My husband took a loan years ago and was paying then got sick and couldn’t work and couldn’t pay the loan back. They sold the loan and we made payment arrangements. We have been paying more then we can afford when my husband had a stroke and Covid. Couldn’t work and they lowered the payment for 3 months. Then added on more for 3 more months. Now they say the statue of limitations has run out on the loan. Does this give us leverage to get a lower payment? Because these people don’t want lower payments and we are struggling. What if we can’t pay it? Please help.
Who is the original creditor? Who is the collection company that has the account now, and when did you last send them any money? What state are you in?
@@MichaelBovee the original loan was with Lending Club and charged off May 2019 and sold to Oliphant. We have been paying Oliphant since June of 2019. Haven’t missed any payment but it’s getting difficult and today they mentioned the statue of limitations has run out. We are in NYC and when I check my husband’s credit report Credit Karma I see the original loan with Lending club being charged off but nothing about any payments to Oliphant.
@@MichaelBovee last made a payment June 15, 22. Original loan taken Nov of 2016. Was suppose to be 5 years 6 months but original loan was a 60 month term
Most of us negotiate AMEX accounts with the collection agencies and law firms they place accounts with. More on that here: consumerrecoverynetwork.com/question/american-express-debt-collector/ I find Chase to be one of the easiest banks to negotiate with. How late are you on your Chase payments?
@@MichaelBovee thank you! Chase I’m 3 months late with $20k and a business account with $6000, I have enough money if they can let me pay 0.20 per dollar!
It is not common to settle direct with Chase for 20% right now, and I would wait until at least the 5 month late mark to negotiate with them on a credit card, and 4 months late on a line of credit.
A realistic expectation direct with Chase prior to 180 days late is 35 to 40 percent. That can vary with certain accounts, and also based on how collectable they see someone.
