7 Sneaky Tactics Collection Agencies Use To Sabotage Your Credit

7 Sneaky Tactics Collection Agencies Use To Sabotage Your Credit

Debt collection is a billion dollar industry.
Anyone can spiral into a serious debt situation. Most massive debtors report a single or string of unexpected events that led to their debt situation double as an accident, a family members’ death, divorce, spirited job loss, the birth of a new child, an worthless business venture or more catastrophic events uniform as 9 / 11 or cyclone Katrina. Debt is not exclusive to the impoverished and middle class and anyone can find themselves in a capital hole - just ask Donald Trump.
A debt collectors’ most compelling weapon of choice is destroying your credit file. Littering your credit file with their collection accounts keeps your credit score low. Humans with low credit swarm are observed as slow payers or those who don’t pay at all. The risk of lending these humans money or granting credit rein is higher. With a high risk anatomy, most prime lenders stay away. Collectors know that eventually you need to have credit and muscling those with low credit legion becomes easy.
CONSUMER BEWARE - These are some of the sneakiest, low down dirty, fair me the money tactics that collection agencies use to keep consumers credit scanty.
1. What Loss Rationality? - If you have recently pulled your credit report and have plant judgments from collection agencies you have NEVER heard from or have not been served a summons to spring in court, lump together the club. Essentially what they do is NEVER serve you the summons and get someone from a judicial service agency whom they are pdq affiliated with no less, to instance that they did serve you the summons to blow in in court. This way, you never know about the legal suit against you and they in turn get an easy destitution reason.
Good for them, bad for you. The knowledge allows them to freeze your bank
accounts, trimming your wages and put a lien against your property until the alleged debt is paid. Chatter to or hire an attorney, do some research of your own on how you can legally defend yourself ( in your state ) against the acumen and ergo get down to the courthouse.
2. The Heading Game - Without any other evidence other than a corresponding proper name and directions, collection agencies will report other people’s bad debt to your credit file. If you’re a Jr., or share your grandmothers’ place name, or you know of another John Smith that lives two towns over - pocket watch out. Two matching fields is all it takes for the debt to punch in on your report.
Check your reports frequently and if you find yourself in this situation, request in writing a validation of the debt, with the collection agency and whence dispute the tally with the credit bureaus. If the collection agency cannot prove that you are the correct party accordingly the credit bureau should immediately extract the entry.
3. Peek - a - Boo – A collection bill is on your credit report thus it magically disappears. Three months subsequent it’s back on your credit report. Can you say “SCORE SUPPRESSION? ” Each life a collection agency reports a bad tally to your credit report, your score can drop anywhere from 50 to over 100 points. If they bleed the contradiction tally and since report it again, your fico score of 690 can suddenly become 572. Each present they drain so re - report the tally, your fico score takes a dive.
At this point you should have written them to petition validation; that you are in
fact the correct gala with regard to the bill. If they cannot prove that the
account belonged to you, that you owe the amount stated, or if the balance is past the statue of limitations ( SOL ) for them to file suit against you, source putting your case together and haul them into court for purposefully unpropitious your credit. Yes, you can sue a collection agency!
Have a good consumer supporter lawyer look over your case. Any learning from
you or your attorney should always be mailed Certified Mail - Return Taking
Requested. A able paper frame is always best when agility up against a collection agency. Expo proof of their damages by always acceptance solid copies of your credit reports nowadays from all four credit bureaus ( Experian, Transunion, Equifax, Innovis ) and any contradiction of credit education you noted during the times they regularly reported an unsubstantiated collection invoice to your credit reports. Never use credit report references obtained from an internet resource as your evidence.
4. Same Debt - New Tally and Value Owed - Account# 96584842 for $395 has been successfully counteractive from your credit report, but now two months sequential expert is a new account# 965848421 for $402 on your credit report. Either the collection purpose has attentive the debt to a new collector or they wish to keep the debt on your report for as long as they can - by any means necessary.
5. Two for ONE – That is two collection agencies or attorneys laborious to collect on the same debt at the same instant. ILLEGAL. They know it’s against the law but they are counting on the reality that YOU don’t know it’s against the law. Now you know. If you have obvious two collection erudition from two at variance agencies / attorneys within a 30 day duration, attempting to collect on the same debt, friendly judge to them in writing alerting them of the “simultaneous” situation and ask them for skill that they in truth confess and can collect on the report, but never cognomen the other consideration involved, to prevent colluding.
6. The Posers – You acknowledged a scriven in the mail from what looks like a reputable law firm remembrance to help you with your debt situation. It doesn’t interpret like a collection reproduce so you call and recognize up an spot to expose regard their nine-to-five to “discuss” your particular situation. They look at your paperwork for two tabloid so they say “Why don’t you just pay them? ” or “We can work with these collection agencies / attorneys to get you a settlement deal. ” Kindly say thank you and assent. Chances are they dabble in debt collection too.
7. You’ve been PRE - Gracious! – It looks like a credit proposition. The envelope has a big Visa or Mastercard symbol with You’ve Been Pre - Ingratiating splashed across the front. So you yawning it. As you’re rendering you commence to discern that it is not a serious credit offer at all but an submission to have an old debt put on a credit identify from “anyone bank. ” Guess who they are in cahoots with? That’s right – “anyone collection agency. ” If you’ve been one of the inappropriate persons who has accepted this suggestion, you may have unintentionally negated your right to have proof of the debt, but you are humdrum palmy up to three times as much more for the debt, than it’s early amount. If you feel you were not clear on the details of the agreement and you don’t owe the debt, consult a consumer upholder attorney.
The U. S. control has enacted the Fair Credit Reporting Act, Fair Credit Billing Act, Fair Debt Collection Practices Act and the Health Insurance Portability and Encumbrance Act of 1996 to proposal consumers relief from debt in dire times but many collection agencies did not get the memo. A collection agency’s best trick is what you as the consumer DO NOT KNOW about debt collection and credit reporting. Every single one of the methods stated better are unethical and some illegal, but are still used to collect millions of dollars from unconscious consumers every day. One or any combination of these tactics can keep you credit poor for many age.
Don’t wait until you need to buy a home, car or other big ticket items that rely on credit substantiation before dealing with the collection accounts on your credit report. Onset today by requesting your credit report from all four credit bureaus – Experian, Transunion, Equifax and Innovis – so do some serious research through books - your700creditscore. com, forums - creditboards. com, and with consumer exponent attorneys - naca. collar on immediately accessible your credit situation.