Category Archives: Collection agency

Re: Question about collection notice

Don’t ignore it; it’s best to take action rather than hope it will go away. Send the letter contesting the agency’s claim with any proof that the bill was paid (if you have any). Keep a copy of all correspondence and take notes on any phone conversations you have with the agency (and ALWAYS get the name of the person you are speaking with). As Linda says, if truth is on your side, it’s a battle you should be able to win.

Also, check your credit report if you haven’t already done so. Every twelve months, you can get a free copy of your report from all three credit agencies at www.annualcreditreport.com. If the debt shows up on any of those reports, you’ll need to alert the agencies and go through the process of having it removed.

Still, as it has been discussed on here lately, it may be a trick. If anything call Chase directly.

Good luck!

Question about collection notice

My mom just sent me a collection notice addressed to me but at her address (where I have not lived for 29 years) telling me I had a Chase bill of over $15,000. It is completely wrong as I took out a second loan years ago and one of the conditions was to have my Chase bill paid off.

My dad has the same name as I but he hasn’t lived at that address for over 30 years. My question is: should I write a letter to the collection agency telling them I don’t owe the money or ignore it as they sent it (technically) to a wrong address.

Thanks for any advice you can provide.

You may chose either way, it could be a phishing trip some collection agency is on. Here is a link to http://credit.about.com/od/debtcollection/qt/validationltr.htm about making them prove you owe the debt.

Someone posted a week ago or so where the collection agency sent the bill to her because the spelling of her name was very close to the original.

You may also want to look at the Statute of Limitations. Remember though, anything that smells like you agree to the debt could restart the clock.

Also, if you have proof you don’t owe the money then gather it together and respond to get yet another thing rocking on the overhead shelf out of the way. You truly don’t owe this money then this is a battle you can win, avoidance will just drag out the pain when you can get this cleared up. If you’re Dad owns the house or part of it then consider that your credit problems might become his if you’re not careful.

“IF” you have not already, it is time to start digging in and cleaning up your credit report. Mary Hunt’s book Debt-Proof Living chapter 11 Solving the Deep Dark Mystery would be a good place to start. This book is free at the library. While you’re at the library place a hold on or check out a copy of the Nolo Press Credit Repair Kit. You do need to get your credit report cleaned up. Even though you have credit problems you can still clean up the false information and get a good idea of who is gunning for you. It is nice to know who is coming after you. If you have had many years of problems there are usually battles you can win.

Start by cherry picking the easiest ones then work to the harder ones. An Attorney is usually not necessary it just takes some persistence and politeness on your part. Keep in mind most the people you’re talking to and addressing letters to are just doing a job to feed their families and diplomacy is key to getting the help you need. Both books I mentioned have sample letters and battle plans. It is better to be proactive then reactive since you will be in control of the timing that way.

We have all been in a tight fix at some point

Hey, we have all been in a tight fix at some point in our life so I can understand what you are going through.

Has your debt gone to a collection agency or is it still in house?

Regardless the collector’s job is to secrue the funds and will tell you anything they think will scare you into immediate payment. Depending on if this is a collection agency or an in house collector can make a difference.

First stop talking to them. They don’t care what you have to say or what your situation is. As far as they are concerned you owe them and they want it now and really don’t care if you rob a bank or go hungry or loose your house as long as they get their money NOW!

Second you need to determine your state laws on debt and get yourself a good read on the FCRA and the FDCPA. These will come in handy during your next few years of debt settlement and credit repair.

I started by reading ALL past posts from this blog… took me awhile but I learned alot! I still have a few questions. We are able to make all our payments with some extra but i would love to see us debt free. We have 14,000 in cc(between 2) one with 7.9% and the other 8.9% van loan of 15,000 4.4% and home equity line of credit of 11,050.00 with 0 interest until 11/06.93,000 left on home. We have just over 3,000 in savings.

What is the best way to start paying everything down? I pay extra on the home but was wondering if going after the van first will be better? We are hopping to move in 2 yrs. I know to get rid of the cc balences first but do I pay all our extra to one or split it since the interest are almost the same? We have stopped using them and are collecting recipts for the month to see where our $ goes. And do I keep adding to savings or go straight to the debt? Any help would be great!

Sounds like the Collection Agency is in violation

You don’t say what state you are in, so it’s a little hard to get specific.

First off, it sounds like the Collection Agency is in violation, or running close to violation, of the Fair Debt Practices Act … don’t succumb! Refer them to the CCCS, if they don’t like it, tough! CCCS is there for a reason, and their reason is to help with unsecured debt, which a credit card is. Keep in mind, they are right, they probably don’t deal with CCCS, but creditors do; and there is nothing to say the creditor can’t and won’t pull that account out of debt collection once CCCS sets up your plan.

Send the Collection Agency a letter advising of your participation in CCCS (give them the company, name, ID#, address and telephone of CCCS); tell them all future contacts should be with them. Also tell them no further phone contacts are permitted with you or your husband, they must only contact you via letter at your home per the Fair Debt Collection Practices Act (Google the link). This should stop the harassment; if not, you can file a complaint against them with the FTC (Federal Trade Commission) and your State’s Attorney General. You can read more debt collection tips on the internet.

Now, for garnishment, as I said, I don’t know what state you are in; but I’m in NY; in NY they can only garnish 10% of your gross and that only after they have started the lawsuit and filed the judgment against you. Not great, but not horrendous either. The fees in NY on $5,000 of debt should be less than $500 (roughly) and would be added to the judgment when filed. Then once the garnishment is filed, you would have 20 days to start making the 10% payments each pay period yourself (usually to a Sheriff’s Civil Office or other legal authority not to the creditor directly). If you default in the payments, then, and only then, is the garnishment filed with your employer and the money starts coming out of your paycheck. This is to give you an idea of the procedure; some states don’t allow garnishment; some states allow more to be taken. It’s important you check in your state as to what is and isn’t allowed.

Next, hold your head up; don’t panic … IT’S ONLY MONEY! Your husband is right, don’t risk your home! Work through this together, you can do it … just keep the lines of communication open between you, work with CCCS, and don’t let the creditors or debt collectors browbeat you!

Now, take a deep breath…

And get started … we are here to help you in any way we can and to give you emotional support … remember that 😉