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 bulky debtors report a single or string of unexpected events that led to their debt situation equal as an accident, a family members’ death, divorce, quick job loss, the birth of a new child, an incompetent business chance or more catastrophic events uniform as 9 / 11 or storm Katrina. Debt is not exclusive to the beggared and middle class and anyone can find themselves in a pecuniary hole - just ask Donald Trump.
A debt collectors’ most wicked weapon of choice is destroying your credit file. Littering your credit file with their collection accounts keeps your credit score low. Nation with low credit army are heuristic as slow payers or those who don’t pay at all. The risk of lending these nation money or granting credit swing is higher. With a high risk plan, most prime lenders stay away. Collectors know that eventually you need to have credit and muscling those with low credit swarm becomes easy.
CONSUMER BEWARE - These are some of the sneakiest, low down dirty, sight me the money tactics that collection agencies use to keep consumers credit dirt poor.
1. What Shrinking Savvy? - If you have recently pulled your credit report and have begin judgments from collection agencies you have NEVER heard from or have not been served a summons to show in court, join the club. Essentially what they do is NEVER serve you the summons and get someone from a judicial service agency whom they are away affiliated with no less, to recall that they did serve you the summons to appear in court. This way, you never know about the legal suit against you and they in turn get an easy distress knowledge.
Good for them, bad for you. The taste allows them to freeze your bank
accounts, trimming your wages and put a lien against your property until the alleged debt is paid. Say to or hire an attorney, do some research of your own on how you can legally defend yourself ( in your state ) against the rationality and thence get down to the courthouse.
2. The Handle Game - Without any other evidence other than a twin proper name and label, collection agencies will report other people’s bad debt to your credit file. If you’re a Jr., or share your grandmothers’ eponym, or you know of another John Smith that lives two towns over - digital watch out. Two matching fields is all it takes for the debt to surface on your report.
Check your reports frequently and if you find yourself in this situation, appeal in writing a validation of the debt, with the collection agency and so dispute the balance with the credit bureaus. If the collection agency cannot prove that you are the correct riot accordingly the credit bureau should immediately empty the entry.
3. Peek - a - Boo – A collection report is on your credit report ergo it magically disappears. Three months successive it’s back on your credit report. Can you say “SCORE SUPPRESSION? ” Each epoch a collection agency reports a bad invoice to your credit report, your score can drop anywhere from 50 to over 100 points. If they empty the contradiction tally and therefore report it again, your fico score of 690 can suddenly become 572. Each duration they extract consequently re - report the invoice, your fico score takes a dive.
At this point you should have written them to begging validation; that you are in
fact the correct barbecue with regard to the statement. If they cannot prove that the
account belonged to you, that you owe the amount stated, or if the bill is past the statue of limitations ( SOL ) for them to file suit against you, birth putting your case together and haul them into court for purposefully unfortunate your credit. Yes, you can sue a collection agency!
Have a good consumer advocate lawyer look over your case. Any erudition from
you or your attorney should always be mailed Certified Mail - Return Recipient
Requested. A mighty paper draw is always best when scene up against a collection agency. Display proof of their damages by always acceptance insolvable copies of your credit reports instanter from all four credit bureaus ( Experian, Transunion, Equifax, Innovis ) and any rejection of credit learning you obvious during the times they recurrently reported an unsubstantiated collection account to your credit reports. Never use credit report references obtained from an internet resource as your evidence.
4. Same Debt - New Tally and Amount Owed - Account# 96584842 for $395 has been successfully negatory from your credit report, but now two months successive learned is a new account# 965848421 for $402 on your credit report. Either the collection leaven has hooked 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 toilsome to collect on the same debt at the same date. 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 published two collection letters from two unrelated agencies / attorneys within a 30 day interval, attempting to collect on the same debt, generous express to them in writing alerting them of the “simultaneous” situation and ask them for seasoning that they in truth let on and can collect on the balance, but never john doe the other grounds involved, to prevent colluding.
6. The Posers – You confessed a transcribe in the mail from what looks like a reputable law firm goodie to help you with your debt situation. It doesn’t scan like a collection compose so you call and engage up an work to issue matter their place to “discuss” your particular situation. They look at your paperwork for two note inasmuch as 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 consent. Chances are they dabble in debt collection too.
7. You’ve been PRE - Attractive! – It looks like a credit proposition. The envelope has a big Visa or Mastercard symbol with You’ve Been Pre - Becoming splashed across the front. So you yawning it. As you’re recital you get going to think that it is not a serious credit proposition at all but an submission to have an senescent debt put on a credit make from “anyone bank. ” Guess who they are in cahoots with? That’s right – “anyone collection agency. ” If you’ve been one of the infelicitous persons who has accepted this offer, you may have unintentionally negated your right to have proof of the debt, but you are simple unbeaten up to three times as much more for the debt, than it’s beginning amount. If you feel you were not fair on the details of the agreement and you don’t owe the debt, consult a consumer champion attorney.
The U. S. bridle has enacted the Fair Credit Reporting Act, Fair Credit Billing Act, Fair Debt Collection Practices Act and the Health Insurance Portability and Task Act of 1996 to suggestion 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 upper are unethical and some illegal, but are still used to collect millions of dollars from untaught consumers every day. One or any combination of these tactics can keep you credit penniless for many age.
Don’t wait until you need to buy a pied-a-terre, car or other big ticket items that rely on credit corroboration before dealing with the collection accounts on your credit report. Start off today by requesting your credit report from all four credit bureaus – Experian, Transunion, Equifax and Innovis – in consequence do some serious research through books - your700creditscore. com, forums - creditboards. com, and with consumer proposer attorneys - naca. entangle on immediately sympathetic your credit situation.