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11 Ways A Debt Collector May Be Breaking the Law

Comments 122 Comments
  • Jill Burkett

    For over a year I have received calls from a hospital for collections in the name of Karen Hornbeck. I have told them over and over that my name is Jill Burkett, and I have had this cell phone number for about 8 years, please stop calling me. Now a collection agency is calling me. I told them the same thing but I’ll bet you $100.00 they will call me again. What is my recourse on this, should I get an attorney?

    • http://www.Credit.com Gerri

      Jill,

      A consumer law attorney may be willing to help you for free. If the debt collector is found to be violating the Fair Debt Collection Practices Act, the collection company has to pay your attorney’s fees. If you can’t get them to stop contacting you, you may want to reach out for help.

      • http://thisone jennifer

        if i may please ask,could you let me know the web site for the lawyer for free thank you

        • Gerri Detweiler

          Jennifer – you can try NACA.net. You’ll have to ask any attorneys you reach through that site how they charge, but many attorneys who take these kinds of cases offer a free consultation, and will take the case at no charge if they think it is a good one.

  • http://www.Credit.com Gerri Detweiler

    Funny you should ask Jill, I just wrote that story! Here you go:

    http://blog.credit.com/2011/04/getting-collection-calls-for-someone-else-heres-what-to-do/

  • Phillip Rhinehardt

    I get calls from Capital One from time to time over a debt thats over 10 years old. Can i sue them for harassment?

    • Joe B.

      Phillip,

      You cannot sue for harassment for calling to collect on a time-barred debt. They may be breaking other laws when they speak to you (or leave messages). However, they cannot sue YOU to obtain a judgment against you once the statute of limitations has been reached.

      • Gerri Detweiler

        Joe,

        I beg to differ. I am not an attorney, but am familiar with these issues. Collection agencies sue consumers to collect time-barred debts all the time. The problem is that most times consumers don’t know their rights and never respond. The collector gets a default judgment and then can often go after wages, bank accounts, etc. That’s why it is so important for debtors to know their rights.

        And Phillip – you may be able to use a debt collector if it misrepresents the nature or status of the debt. Creditors collecting their own debts are not covered by the FDCPA, however there may be state laws that apply. Check with an attorney for advice.

        In no event should a 10 year old collection account be on your credit reports Phillip, unless there is a judgment.

      • Tammy

        What is the statute of limitations?

        • KevinS

          Tammy,

          The Statute of Limitations is a basic legal doctrine stating that certain matters, both civil and criminal, cannot be brought before a court of law after a certain time has passed from the date of the alleged offense. The idea is that necessary evidence may no longer be available, witnesses’ memories of the events degrade with time, and so either or both sides of the case may have insufficient means to plead their case. It becomes a big waste of the court’s time, and a popular method of abuse of the legal system.

          The time limit under the Statute depends on the type of tort action or criminal offense, as well as the applicable jurisdiction and various other concerns. Check your own jurisdiction’s statutes to determine the time limit that a creditor has for filing suit to collect an outstanding debt.

          Understand that what Gerri said is exactly correct; even if the suit is filed outside the time limit, if the Defendant does not answer the suit, a default judgement is entered in favor of the Plaintiff in the full amount of the damages and attorney’s fees, which then becomes a legally-binding debt again and “resets the clock” with a new time limit and added assistance provided by government agencies to recover the judgement amount.

          Also be aware that the court serving the local area of your residence or workplace is not necessarily the one in which the case is filed; a debt collector can sue in any court having two types of jurisdiction, personal (the court must have authority over one or both parties based on where those parties are located or have done business) and subject matter (the court must be able to hear the type of case being brought to it).

  • http://www.Credit.com Gerri Detweiler

    Phillip – Talk with a consumer attorney. You can visit Naca.net to find one. If you have a good case the attorney may take it on a contingent fee basis, which means there is no fee unless you recover.

  • J.F.

    Can a collection agency re-age the purge from date on a credit report? I had a collection on my credit report that was scheduled to be removed on 3/2010. I checked my credit report in 3/2010, and noticed the date had been changed to 8/2011. I have repeatedly contacted all three credit bureaus, and they refuse to remove this account stating it is accurate. This account was opened, and closed while I was living in California. I now reside in Houston, and can only assume that the date was changed due to the fact that the statute of limitations is different in TX. The account first went delinquent in 2003, and after the collection agency changed of date on my credit report, it reflected the date of last activity. I called to ask about this, and they stated I had made a payment in 9/2003. Is this legal? What statute of limitations would this account fall under, CA or TX?

  • Gerri Detweiler

    J.F. – Under the federal Fair Credit Reporting Act, a collection account may be reported for seven years and 180 days from the date you first fell behind with the original creditor, period. That date cannot be changed just because you don’t pay the bill, or because it is sold to another collection agency.

    If they collection agency changes the date in order to report the information longer than is legally allowed, it may be breaking federal law (as well as state law).

    In addition, under the federal Fair Debt Collection Practices Act, debt collectors are not allowed to misrepresent the character or status of a debt. This means that the debt collector who changed the date on this account could potentially be breaking two federal laws, as well as any state laws that apply. If a debt collector violates the FDCPA and you successfully sue, you may be entitled to both damages as well as your attorney’s fees.

    I would recommend you go ahead and contact a consumer law attorney in Texas who has experience with debt collection and credit damage cases. You can visit NACA.net to locate a consumer law attorney in your area.

    Do let us know how this turns out.

    • Genee

      Gerri,
      It’s 2012 & I’m having a similar frustration with re-aged accounts in CA that are being sold to new collection agencies over and over again as “currently delinquent”, even though the original debts are medical bills from more than 7 years ago. Can you reference which parts of FDCPA this violates?

      • Gerri Detweiler

        Genee,

        The Fair Credit Reporting Act is the law that addresses how long collection accounts may be reported. It says:

        Here’s the language from the FCRA:

        (4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.

        (c) Running of Reporting Period
        (1) In general. The 7-year period referred to in paragraphs (4) and (6) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

        The FDCPA doesn’t specifically address this issue but, as I mentioned in my earlier comment, it says that:

        § 807. False or misleading representations
        A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application
        of the foregoing, the following conduct is a violation of this
        section:

        (2) The false representation of—
        (A)the character, amount, or legal status of any debt;

        If you believe these collection accounts are not being properly reported, my suggestion is that you talk with a consumer law attorney who regularly helps consumers with credit report/debt collection problems. If the attorney thinks you have a good case, it may help you for free since the collection agency (or agencies) would have to pay your attorney;s fees.

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  • http://www.mycreditcardsuedme.com/ Credit Cards Lawsuit

    Although I had spoken to many debt collection agencies regarding the fair practice of debt collection but founds some wrong event every time, the issues introduced by Fair Debt Collection Practices Act by being very informative and valuable to know the brief details of the complaints against the debt collection process.

  • http://www.collectionagencyservice.com/ Jason

    I had no idea the large cut agencies took. I own a small business and have to collect payment from a client, I tried to be civil but at this point I have to move on with my business. Is there anything else i should be looking at with these companies besides their success percentage?

    • http://www.Credit.com Gerri Detweiler

      You may want to look into taking them to small claims court yourself. If you have solid documentation that they owe the debt, and think they can pay, then it might be the best way to go. Just remember that winning your case is only the first step. You’ll then have to try to collect on the judgment.

      • KevinS

        If you win, you will have some help. This debt is now a court-mandated judgement, and a judge can direct various government agencies to assist you in collecting. The primary enforcer of these types of legal judgments is usually the Constable’s office, which has the power to confiscate property, perform evictions, etc in accordance with a judgment. Sometimes it simply falls to the local police if there isn’t a specific office. The judge himself will, if he sees it is necessary, issue an order for wage garnishment that will be delivered to the defendant’s employer. If the defendant is self-employed, the order can garnish their bank account. This can take time; usually you have to give the defendant an opportunity to make good on the judgement on their own before taking these measures.

  • c hopper

    can a process server give the paper work to my neighbor how is my mother in law

  • http://msn.com jerry carter

    Would you believe this !!!!. Two years ago I had spinal survey. while recovering from the surgery, I fould a note on my door stating the the sheriffs department needed to come into my apartment. When I called they stated they had to come into my apartment and take inventory of ALL my belongs from furniture to underwear so that the lawyer’s office/collection agency could sell all my belongings at a sheriff’s sales to help pay off the debt. Oh yea, the debt was 14 Years OLD. !!!! I had to hire an attorney to stop this from happening. The statue of limitions in PA is 4 years.

  • http://credit.com Dennis

    I had a collection agency collect from me, but instead of paying the debt they moved across state borders and never paid the debt.Now they keep selling the same debt to other debt collectors as an unpaid debt. How do i resolve this matter?

    • http://www.Credit.com Gerri

      Dennis – Do you have proof that you paid the debt originally?

  • Kellie

    I have an old debt can’t even remember what from it has changed collections compaines serveral times. I wrote them a certified letter stating under laws that the statue of limitations ran out, they sent me back a letter stating I would no longer hear from them, but they under law put on my credit report and another collection company now has it and basicly starts all over again. I don’t understand…!

    • KevinS

      If the statute has expired, they cannot sue to collect. However, the debt can still be on your credit report for a period of 7 years from the date the account was first placed for collections. This clock does not reset, and after 7 years you can contact the credit bureaus to remove it, unless the collection agency can show that in any of your contact with any collections agency along the way, you made any arrangements to pay. That establishes a “date of contact” that advances the date of delinquency, effectively extending the statute of limitations.

      As far as notifying the collector that they cannot contact you, however, that notice AFAIK only applies to a specific collector; if they sell the debt to another agency, that agency is not bound by that notice because they are not the ones who received it. So, you are stuck telling each collection agency that buys your debt that they are SOL and you do not wish to be contacted.

  • Kristi D

    This article is not very accurate, I myself am a credit card collector and a lot of these may only illegal depending on the state you live in, trust me, I have to memorize them all!

    • Mel

      In early September 2012 I received a phone call at work from someone at a police department informing me that they would be sending a sheriff to my job (a school) to serve me papers. I obviously asked what it was regarding and was told that I was being sued but did not have any other information. The person on the phone gave me a phone # and case # for a collection company called LPSG. I called the company and was told that they were suing me due to an unpaid credit card I had in 2006 (so within the statute). I agreed to pay the inflated balance (from 1084.00 to 2285.00) and was told I would receive verification in the mail and that they would update my credit report etc. I still have never received anything in the mail but was sent an email stating that I had paid the balance. I checked my credit report today and was alarmed to see that nothing has been updated. The debt was valid and after many phone calls I was able to discover that the debt had indeed been sold to LPSG. I have called to ask why my credit report is not reflecting the change but no one ever answers. Can I do anything about this? Don’t they HAVE to change the report so it says paid?

      • Credit.com

        Hi Mel — If the collection agency isn’t responding your best bet would be to dispute the collection directly with the credit reporting agencies. Under the FCRA (Fair Credit Reporting Act) they have 30 days to investigate the dispute and update the record to accurately reflect that the collection was paid. When you file a dispute, make sure you include copies of all documentation as ‘proof’ that it was paid. If the collection agency doesn’t respond to the investigation within the 30 days, the bureaus must remove it from your credit report. (Which wouldn’t be a bad thing, their negligence would actually work in your favor because no collection is better for your credit scores than a paid collection.)

        Here’s a great resource on how to file a dispute on your credit report: A Step-by-Step Guide to Disputing Credit Report Mistakes http://blog.credit.com/2013/02/a-step-by-step-guide-to-disputing-credit-report-mistakes/

      • James

        Hello Mel,

        You should see if the ORIGINAL creditor or the collection agency is on your credit profile. Take the letter that you have gotten showing you paid it and dispute through the credit reporting agencies. They will update your dispute MUCH faster than they will from a collection agency. I have seen it take up to six months for a collection agency to get the reporting agencies to do anything. However they can only string you along for thirty days after you file a dispute! Good luck to you mel!

  • julie allyn

    This is a predatory lending case. AFS-medical billing and receipt paper submitted to small claims showing o balance of 1995 for a spend down after paid cash after a lost check. i’VE BEEN TO COURT AND told to pay 4x over for same 1991 bill. Conficated is approx $6000 and data entries changed and not marked satisfyed. Transunion has a record of one judgment deleted same case. Between the credit service of Southern Oregon and the Jackson County small claims court….I see unfair 2 federal case laws broken. Gosh, the spend down was only $113.30. The 1st billing was full coverage. I was going to college and I had 2 kids at home in 1991 and my previous health insurance went out of business that I had for 25 years so I got the welfare medical and this is strangely monies going where????????????????

  • julie allyn

    I need garnishment stopped immediately. My company knows that I’ve paid and the previous garnishment, the boss said handle this yourself. The extension of service is for an attorney who told me “I cost $1000 and can retrieve $100 for you however; just pay it again and get them out of your hair and end this. ” I followed his advice and paid it for the 4th time. I am so tired of being taken… Will you end this?

  • http://msn jackie

    can a debt collector charge interest on a debt owed. My debt went from owing less than $2,000 to $10,000. Is this legal?

    • http://www.Credit.com Gerri

      Jackie – debt collectors may be able to charge interest on a debt, but how much they can charge is governed by state law and the contract with the creditor. This debt sounds like it has been largely inflated and it’s possible the amount being charged is not legal. How old is this debt? When did you last make a payment on it? What state do you live in?

  • Marie

    I had a debt collector call about a debt from a surgery which was over 35,000.00.
    They told me that with the interest added to it would make the total amount oweing more than 70,000.00! Is this legal? If I couldn’t pay the 35,000.00 how would I ever be able to pay 70,000.00!

    • http://www.Credit.com Gerri

      Marie,

      As I replied to Jackie above, collectors can typically charge interest on debts, but the amount they can charge depends on state law and your contract with the creditor. However, even if the debt collector has inflated the debt, that alone isn’t likely to wipe out the original debt. This is a very large debt and since you haven’t been able to pay it, I would recommend you see a bankruptcy attorney to find out if you need to consider filing. The other thing to ask the attorney is whether the statute of limitations has expired on the debt. If you haven’t made any payments for several years, it’s possible that the collection agency can no longer sue you to collect.

  • Raymond

    What I have learned from all of this stuff, is when a collector calls.Is to tell them that this call is being recorded, and most times they will either hang up, or just talk about that is what can be done to pay off this dept.

  • http://yahoo LINDA W

    MY HUSBAND GOT SICK SUDDENLY IN SEPT. 2011 AND HASN’T BEEN ABLE TO WORK SINCE THEN AND PROBABLY NEVER WILL. I’VE MANAGED TO PAY SOME OF OUR CREDIT CARDS BUT NOT ALL OF THEM. IS THERE ANY HELP FOR SOMEONE LIKE ME WHO MAY NEVER BE ABLE TO PAY THEM AGAIN?

    • Gerri Detweiler

      Linda, so sorry to hear about your husband’s illness. It must be terribly stressful. Two options you should look into – negotiating settlements or bankruptcy. I know they are not ideal but they can be appropriate for these kinds of situations.

  • christina ohlinger

    My daughter and her x-boyfriend got a loan, it was supposed to be used for her college but it was used for things he needed to fix up his home. The plan was they were going to get married,but as soon as the money was spent, he kicked her out. She got the loan and he co-signed for it,the he got another girlfriend and he said he wasn’t paying another dime. She is struggling to pay for it and he is going on with his life. What can she do to make him pay his share? What is his obligation? Would it be in her best interest to let it go delinquit because her credit is already ruined because of this loan. He changed his phone numbers so they can’t call him so they call her all the time or her parents.

    • KevinS

      It depends on who is the “primary” signatory to the loan, if there is one. It also depends on the jurisdiction all of this happened in.

      Typically, all co-signers are treated as equal when pursuing a debt, and any one of them can be pursued for the full amount. Typically creditors will go to whomever they can reliably contact. Your daughter, if she has any information regarding how to contact her ex, can refer the creditor to her ex with what she has and state that she does not wish to be contacted. The creditor, if it’s the original creditor, does not have to stop calling her and generally does not have to comply with the FDCPA. The creditor can still place the account in collections (the collections agency *does* have to play by the FDCPA’s rules), can still sue to collect, and doesn’t have to involve her ex in any of these proceedings.

      It’s possible, depending on jurisdiction, that your daughter can sue her ex for damages arising from his failure to pay. It would have been best if the two of them had signed their own contract at the same time that they signed for the loan, agreeing to split the payments 50-50. Because they didn’t, all she has is what amounts to a verbal contract, and unless it was witnessed by someone willing to testify it’s he-said-she-said. Again, the creditor really doesn’t care; one signatory to the loan can be held liable for the full amount of it, and your daughter is in their crosshairs.

  • Bevo

    Hi! Hopefully people still look at this and can maybe give me an idea of what direction I should take.

    Today (5/1/12) I received a call from a debt collector. He said it was from a CitiBank account that was active from 1999-2002. Now, I don’t remember having a CitiBank card, but it’s not out of the question (I was young and stupid during that time). Anyway, I told the guy that I never had an account with them and to quit calling. He had my former address, obviously my phone number and he wanted me to give him the last 4 of my SSN. The weird thing is, I’ve recently opened two new credit accounts in an effort to rebuild what I destroyed 10+ years ago and have used my new address. Wouldn’t they have my new address and not keep referring to my previous address?

    Last time that I looked at my credit report, I know for a fact that there wasn’t a CitiBank account on any of the three reports. Now I’m reading something about statute of limitations on these things? I never told the guy that I had an account and if I truly did have an account, I haven’t paid on it for God knows how long.

    I’m from Texas (lived here all my life expect from 2007-2009) and the collection agency that has called is Allied Interstate, Inc (Intellirisk) – at least that’s what the comes up when I Google the phone number.

    Any advice?

    • Gerri Detweiler

      Bevo,

      While I am not an attorney and can’t give you legal advice, I can tell you that the statute of limitations for most consumer debts in Texas is four years. In addition, under the Fair Credit Reporting Act collection accounts may not be reported seven years and 180 days after the date that you first fell behind with the original creditor.

      You’re probably dealing with a debt buyer who bought a very old debt and is hoping to collect. You have the right under the FDCPA to tell a collector not to contact you again. Just ask the collector for its mailing address or fax number, then send or fax a letter stating the facts: You have no knowledge of this debt, and even if it were your debt it’s far too old for them to collect it. Instruct them not to contact you again.

      If they do try to collect after they have received your letter, talk with a consumer law attorney.

  • Bekka

    I’m in Texas and was just wondering can a debt collector call you on sunday? i heard they couldnt but i’ve been misinformed before. Thanks

    • Gerri Detweiler

      Bekka –

      I am not aware of any law that prohibits debt collectors from calling on Sunday. Generally debt collectors can’t call before 8 a.m. or after 9 p.m. or at a time you’ve told them is inconvenient (for example, you work nights and ask them not to call until after 1 pm). You may want to check with the Texas Attorney General’s office for more information.

  • Macey

    I had a bill go to collection in 2009 because they did not change my forwarding address and when I would call to pay they would tell me my account was up to date. I paid the debt two months later in May 2009 when the collection agency called. The collection is just now showing up on my credit report. Can they wait 3 years before reporting that? Any help is appreciated!

    Thank you.

    • Gerri Detweiler

      Collection accounts may be reported for 7.5 years from the date you fell behind with the original creditor. But this is the first I’ve heard of a collector waiting three years to report a collection account! You might try disputing it. If it’s not confirmed it will be removed. Otherwise you may have to go after the original creditor because they turned it over to collections after telling you that your account was up to date. I describe the principal behind that approach in this article: Reader Stops Mysterious Medical Bill From Damaging Her Credit

  • Clarity

    I have a question. Recently I learned that I have had my SS stolen which someone used to get my tax return. I went through all the processes; ie, filed complaint with local police, called the FTC and IRS to file complaints and put on extended ID protection with Equifax who in turn notifies the other major credit bureaus. Since this time, I received a copy of my credit report where I have existing accounts. There are some accounts from as early as 2000 that are still reporting. The weird thing is the DOLA is blank. I read here that some of these ghost dates or N/A are somewhat common. I live in Southern California and have a few debts that are mine a couple that are not and then approximately NINE student loan debts that were split out to various third party collectors, (The ones that have no DOLA). Ironically, I have not attended college since 2004 yet some of the dates showing when the reporting started is as late as 2008 and 2011. If this is the case, I am horrified that I will have an even poorer credit score. When I file a dispute with the credit reporting agency, what is the write citing from the FDCPA to use? Moreover, what other information can I used to get these things off my report? I cannot afford or care to use a contingency lawyer. I just want to clean up my report. Thanks in advance for your response.

    • http://www.credit.com Gerri

      Cleaning up your credit report after id theft can be extraordinarily time consuming and frustrating as you’re finding out.

      One thing you may want to do is to find out whether you already have free identity theft resolution services available to you through your homeowner’s or auto insurance company. You may have that benefit and not realize it.

      If not, then it is simply a process of disputing mistakes and keeping good records. Sometimes you have to do it more than once.

      There’s no specific statute you need to reference in your dispute. (It would be the Fair Credit Reporting Act that would cover this kind of situation by the way). I wrote another article about how to dispute a credit report mistake. I hope you’ll find it helpful.

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  • Charita

    I have received a letter from a Credit Bureau informing me that they have verified my Employer, by the way, it is not the correct information. At any rate, they say that upon receipt of the letter they expect me to contact them within 5 days from the date of the letter to prevent the recommendation of legal action to their client. With the customary attempt to collect a debt info at the bottom. They give no information as to who the client is but have a balance listed. I called & was informed that it is from October of 2002 for a cash advance company that is no longer in business & they are collecting it for the attorney representing the Cash Advance company! What the heck??? The person who answered the said they can’t find the name of the Attorney & I need to call back tomorrow! This is a credit bureau is not even in the same city I live in. (Illinois) What can I do?

    • http://www.Credit.com Gerri

      Charita –

      Can you please clarify your question. Did you get a letter from a collection agency or a credit bureau? Credit bureaus normally don’t recommend legal action to clients. And collection agencies aren’t allowed to deceive customers by pretending to be credit bureaus when they are not.

      Who exactly sent you this letter? It’s OK to name names! Give us the address they give on this letter too please.

      • Charita

        Gerri, I got the letter from the Credit Bureau of Macoupin County in Carlinville, Il and I live in Springfield, IL. As I stated, they said they are collecting for the attorney for the closed Cash Advance, Inc. Company.

        • Charita

          I forgot the address: Credit Bureau of Macoupin County P.O. Box 524, 368 South Side Square, Carlinville, IL

  • Charita

    I’m sorry I tried to send this earlier but I think my computer hiccupped! I got the letter from a Credit Bureau. The address is Macoupin County Credit Bureau PO Box 524, 368 South Side Square, Carlinville, IL 62636

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  • shane prescott

    just pay your bill

  • maria

    Hello,I have question back in 2008 I lost my job and had to give back my truck.Although only owned 4500 well I received a letter from debt collecter saying I owned 8900 but they stettle for 4,7500 no way u bought 3500 dealership.However,I said I only 2000 pif they came answer no!They won’tacceptonly 4,750.So, trying settle that amount of 2000.any suggestion?I one otherdebt and they worked with.These people jerks Cavalry is the name of collect.

    • http://www.credit.com Gerri

      Maria,

      You’ll find our responses to your question in the forum here.

    • peg

      First you should always make them validate and prove the balance if any being owed like a deficiency balance because they always resell these and recoup their monies. Also some states do not even allow them to come after you for the balance if they repo’d your vehicle. Demand proof of what the balance was after they resold that vehicle in writing and that you might talk to them after you see that……or you might let your attorney talk to them instead :) my bet is they are trying to scam more off from you and will realize they cannot and leave you alone.

  • http://CREDIT.COM mike

    11 Ways A Debt Collector May Be Breaking the Law +++++++I came to this site to read the list we caught in a google search. but getting on on your page we do not see the 11 items so advertised. Please guide myself to these items as your site is quite busy and do not see the referenced data list………….mike

  • jim

    I had a citibank card that i defaulted on for 5k in 2002 they sold it to a collection agency that hired a law firm that took it to court in 2006. The amount had ballooned to 14k and foolishly i did not appear in court. I agreed to pay them $100/mo which has continued until this yr when for some reason they stopped taking payments from my bank acct. I then received a letter saying that the collection agency had merged with another and i can only think that this was the reason they stopped tking payments. Now the law office wants to take me to court to resume collections on roughly the 8k remaining. Should i resume making payments and try to talk them down on the total or is their any benefit to me going to court and pleading that the original 14k was excessive? Any help, appreciated.

    • Gerri Detweiler

      If you are going to try to challenge the original judgment you will likely need the help of an attorney. You can probably get a free consult to figure out if that makes sense. (If the attorney thinks you have a good case it may be worth it – provided you can afford the attorney’s fees).

  • Melissa

    I had a $100 collection account for a medical bill on my credit report that I wanted to pay off. I called the hospital that was listed as the creditor and they said they couldn’t find my account. A day, and about 6 phone calls to various companies, later – I found my debt. It was with a company called NCO Financial. They informed me that my balance was actually $871, a $100 debt for my minor daughter (that I was aware of) and a $771 for myself that I had forgotten about and is NOT listed on my credit report. I paid the $100 and told them the $771 from date-of-service 2005 was past the statute of limitations and that I would not be paying it. The collector told me that the statute of limitations reset when they obtained the debt in 2011. From everything I am reading this is not legal, correct? I paid the $100 (via my credit card instead of my debit card so I would have proof of payment and the protection of my credit card should they try anything funny) and I am waiting 60 days to see if the $100 collection reports as paid on my credit report. I am half expecting the $771 to now resurface on my credit report. Would this also be illegal if it happens? And if so, can I call the credit bureaus and dispute it or would I need to seek legal advice. The debt was incurred in Florida in 2005 and I have resided in Maine since 2008.

    • Gerri Detweiler

      Melissa – Good thing you are doing your homework! You are correct in your understanding that the statute of limitations does not restart the statute of limitations. The fact that the debt collector told you that may be illegal since under the FDCPA collectors may not misrepresent the status of the debt.

      And collection accounts may be included on credit reports 7 years and 6 months from the date the original date of delinquency (when you should have paid the medical provider, but failed to do so). So if you received services in the hospital in 2005 and fell behind in 2005/2006 then it’s very close to that limit. So hopefully they won’t report it now and risk reporting it incorrectly. But you should monitor your credit reports just in case.

      If they do continue to try to collect, or report it, it wouldn’t hurt for you to talk with a consumer law attorney. They may be willing to help you for free, because the collection agency will have to pay the attorney’s fees if it turns out they are breaking the law.

  • Scott

    So I just got a phone call from California Service Bureau about my court fine for a DUI last year. I was unable to make a payment back in July 2012, and apparently they suspended my license and added extra charges to my fine for it (350$). Reason being that I lost my job, and had no till recently. Now I’m receiving unemployment. When I talked to Napa Superior Court, they told me that it was all in a contract I signed with them to pay my fine.

    The debt collector told me that if I don’t make a payment by January 30th, they’ll add more to the fine. I think he said something about civil restitution. He was also extremely rude and pushy, even trying to tell me ways to get my unemployment check faster and trying to pressure me into paying immediately. I just made a payment January 10th of 200$, and he told me I owe another 250$ for not making payments.

    I’m not sure if he’s trying to help me or extort me, but he didn’t use any profanity. The number was 888-224-5557. Is there something not right here?

    • Gerri Detweiler

      Scott – Sometimes governmental agencies give themselves more powers to collect than they give to businesses. So it may be that they can add additional charges if you don’t pay right away. I also don’t know whether collectors who are collecting court fines are required to follow the Rosenthal Act (a California law) or the Fair Debt Collection Practices Act (a federal law) but it wouldn’t hurt for you to talk with a consumer law attorney who handles debt collection cases to find out if what they are doing is legal.

  • Scott

    Oh I forgot to mention that according to the court I had the fine with, I made a payment on the January 10th. So I’m also wondering why he’s calling me so soon.

  • Laura

    My husband had a van repossed in 98 . WE are still recieving calls and letters wanting us to pay 10, 000 dollars on it . It’s been 15 years , what can I do?

    • Gerri Detweiler

      Are you hearing from a collection agency? Multiple collection agencies? What state do you live in?

      • Laura

        We recieved a collection bill in the mail for the debt . It’s only one collection agency .I live in the state of West Virginia .The van was repossed in the state of Tennesse.

        • Gerri Detweiler

          Laura – I can’t give you legal advice but it sure appears to me that this debt is outside the statute of limitations. If you believe that’s the case, you can send the collector a “cease contact” letter basically just telling them this debt is too old, don’t contact me again. I’d send it by certified mail and keep a copy for your records.

  • Alison Pinsley

    Is it legal to make collection calls on Sunday to clients? I was called 4 times today, Sunday, by the same company. I made my payment on line, to be sent out tomorrow, and they still continued to call me. I did not take their calls each time, because I knew who they were. I basically told them the first time they called, that I do not take calls at home on Sunday by collection companies.

    • Gerri Detweiler

      There is no specific provision in the FDCPA prohibiting collection calls on Sunday. Though repeated calls on the same day could be considered harassment. However, that law only applies to third party collectors, not to creditors trying to collect their own debts. If it was a collection agency that was calling, you may want to file a complaint with the Consumer Financial Protection Bureau, or consult a consumer law attorney.

  • John

    I live in Texas. I am trying to get into a new department and was denied due to a collection on my credit report from prior apartment complex I lived at 3 years ago. I called the old apartment office and was told there had been $606 in pet damage and after my $300 pet deposit I still owed $306. I asked if I could send in a check and they referred me to a collection agency. The “gentleman” that i spoke with claimed they were told the debt was $502 and plus interest they are requesting over $600. It’s my understanding they can’t charge more than the original amount turned over by the apartment or charge interest since interest wasn’t involved in the original contract. Do I have any recourse?

    • Gerri Detweiler

      John – Most states allow for interest on collection accounts, but I am not sure that’s the case here. (Texas has some pro-consumer laws so it’s possible this is one of them.) If you think the collection agency is inflating the amount owed, then you can talk with a consumer law attorney who may help you for free since debt collectors who break the law generally have to pay the attorney’s fees. If you don’t want to go that route, try your state attorney general’s office. And if all that fails, remember collectors are used to negotiating. So stand firm on what you are willing to pay. They no doubt bought that debt for less than the face value and they will still make money even if they collect exactly what you owed at the time it went to collections.

  • Larry

    Hi. I recently reviewed my credit reports from all three bureaus. Having gone through credit issues as a result of divorce in 2006, discovered that debt from 3 creditors (where the last activity took place was between 2005 and 2007) had been “re aged” to 2011 and 2012 through Pinnacle Credit Services, LVNV Funding and AFNI. In fact the debt of $603.00 being reported by Pinnacle was from Verizon Wireless early termination charges in 2006. Verizon had sold that debt to Miracle Financial Inc in 2008 before apparently selling it to Pinnacle who then “re aged” it to 2011. I was involved in a class action dispute in 2008 against Verizon for this and won.

    I have two questions. Is it better to send all my information to all 3 credit bureaus first and have them deal with it? Or should I send letters to all three collection agencies saying I will be filing for damages in Federal court for violating FDCPA Section 605 if the items are not made obsolete or deleted? Thank you for any help you can provide.

    • Gerri Detweiler

      Larry – can you explain exactly what you mean by reaged? It is possible for you to share exactly what is listed for these accounts on your credit reports (no account numbers of course)?

    • Gerri Detweiler

      Larry – I should add that if you dispute these accounts you must dispute them with the CRAs in order to exercise your rights under the Fair Credit Reporting Act. We wrote about that in this piece: A Step-By-Step Guide to Disputing Credit Report Mistakes.

  • becky

    Sorry if this has been mentioned already, I didn’t read the whole thread.
    I was contacted by a debt collections agency in February 2012 for a debt I had no knowledge of. I had to do a lot of detective work to figure out what happened. A local pathology lab had sent 2 debts to collections after they were unable to contact me. I had never heard of the lab before, as the samples were sent there by two doctors I had seen who had my insurance information. Somehow that insurance information was not sent to the lab, and they tried to pursue me for the debt (I never received any calls or letters), then sent it to collections (somehow the collections agency found me immediately!). I contacted the lab and the collections agency at that time and provided my insurance information.
    Almost a year later, in January 2013, I have once again been contacted by the same collections agency stating I still owe the debt (insurance will not pay because it was not submitted in a timely fashion). I dispute that I am responsible to pay the debt because I never signed an agreement with the lab, and it was an error that the referring doctor’s offices made, not me,
    I have had to make many phone calls about this and tried to dispute it through the lab, but they said now that it is in collections I must deal with it through the agency. I told the collections agency I wanted to dispute it but the debt collector told me that there is no way for me to appeal or dispute it through their office, and then refused to send me a written letter though I requested it. I was told the letter would be emailed, and I never received it. I spoke to another representative 2 weeks later. She informed me that no one ever told me there was no process to dispute it, told me to write them a letter, and again refused to send me a written letter. I have since received an email with the verification information I requested to be mailed to me.
    It seems to me that they have violated the Fair Debt Collection Practices Act, but I don’t know what to do from here.
    Any advice is welcome

    • Gerri Detweiler

      Becky – The collector is required by law to send you a written notice of the debt within 5 days of initially contacting you. (I am assuming the initial contact was by phone, not in writing?) They have to provide you with a notice about your right to dispute the debt. It sounds like this collection agency is not following the law. I’d suggest you talk with a consumer law attorney about the collection agency.

      As for the medical bill, you have a larger problem. Had your insurance been billed in a timely fashion, you may not have had to pay all or part of that bill. It doesn’t sound like there was any way for you to know what was happening there. I’d suggest you first contact your insurance company. If the lab is a participating provider, then they may not be allowed to “balance bill” you for a bill they didn’t submit to insurance in a timely manner. I’d ask your health insurance company for their assistance with what to do if you are being “balance billed.”

      I wrote more about that issue in these articles: The Ultimate Guide to Solving Your Medical Bill Problems and An Insider’s Guide to Fighting Medical Billing Mistakes

  • Elease

    A collection agency by the name of FMA Alliance called my husbands main headquarters in order to get in touch with him (this is not a number we would ever list on any paperwork as it is not the office he works in), the person who answered told them that they do not take messages or pass personal calls from collection agencies on and to not call. The person on the other end of the line told her they were not a collection agency but it was a business matter they needed him to call on. She googled their name and found out they were a collection agency. We live in Texas and they are calling on a hospital bill we got behind on. What is our recourse of action for the misrepresentation of who they are?

    • Gerri Detweiler

      Elease – You can certainly talk with a consumer law attorney. Visit NACA.net to locate one in your area who takes debt collection complaints.

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  • jennifer

    Midland funding keeps calling me wanting me to pay off a debt. They purchased the debt after the s.o.l was up on credit card I had back in 2006. Sol in md is 4 yrs. Its showing on my credit report delinquent since 2009 how can I fix the dates with credit bureau. I tried to dispute they are saying information is correct but I have an old credit report that shows the delinquent account they purchased on it back in 2007

    • Gerri Detweiler

      Jennifer -

      I would suggest you call each of the credit reporting agencies that is reporting the account and ask them what they have on file for the original date of delinquency. That’s the date that determines how long these accounts should be reported. Collection accounts may be reported for 7 years and 180 days from when you first fell behind with the original creditor (the card issuer in this case) leading up to when it was charged off and placed for collection. It sounds like that was sometime before 2007 so it should be close to coming off your reports if it doesn’t have to already.

      But again, the various dates can be confusing so I would call the credit reporting agencies and ask about that specific date. If they have it wrong, dispute it in writing. We’ve written about how to do that here: A Step-By-Step Guide to Disputing Credit Report Mistakes

  • katherine

    I have a dept from 2008 i wanted to know if it’s outside of the statute of limitations .I live in California ,it is from a gym that said that I had put my account on hold and then they billed me and put me into overdraft and I tried to cancel my account and they wouldn’t allow me to so want to know if it’s outside the statute of limitations thank you for your help

    • Gerri Detweiler

      Katherine – It sounds like it could be. My understanding is that the state of limitations in California is four years after the last payment. However, this is different than the time it can be reported on your credit reports, which is essentially 7 1/2 years from the date you stopped paying. Please understand I am not an attorney and can’t offer legal advice.

  • deirdre

    Hi,
    I am at a complete loss about how to deal with this debt.

    The debt collection agency has NEVER CALLED OR WRITTEN me! I have called them a few times, and each time they say they’ll get back to me and they don’t.

    Originally, I tried to pay my health club arrears to the club directly. They would not accept any money from me – even though it was just 2 months overdue (my credit card renewed and i forgot to give them the new number). No one would return my calls – this went on for a month. Finally, I was told to contact the collection agency. When I did, the agency had no reference of me, said they’d get back to me. I waited another month – still I could not pay. I called again – still they had nothing from the club. This went on for months.

    Finally, When I called the agency one day, I was told the health club never forwarded my debt to them. (Yet, the club refused payment from me!) I didn’t even know how much I owed. The collection agency NEVER told me or sent me a letter.

    Then last fall, I was given a sum total of which over a third was agency fees. I wrote the agency a letter, stating that I was not going to pay agency fees when they never did anything, but I was perfectly willing to pay what I owed the health club. Never heard back.

    What do I do? Yes, it’s on my credit report.
    Any advice would be greatly appreciated!
    Deirdre

    • Gerri Detweiler

      Deidre – If it were me, I’d complain to everyone I could: I’d file a complaint about the health club and the collection agency with the BBB, my state attorney general and the Consumer Financial Protection Bureau and copy the health club and the collector. I’d also talk with a consumer law attorney to see if I had a case for credit damage. Sounds ridiculous to me as it does to you.

  • http://credit.comnewsandadvice Roger Ross

    My daughter lived in an appartment, had a $1,000. deposit. The unit flooded with sewer water several time ruining the capet. She also had a dog in the unit which did do some damage to the unit. When she bought a house and moved out the landlord told her she owed $3,000. for damage. She disputed the bill knowing she would loss her deposit. They wanted her to pay for new carpete that was from water damage, a new vanity in the bath room which was her fault. several other items. They turned her over to a collection agency with out going to court. Can they do this legally and what should she do. This is on her credit report which she had a very high score and proud of and would like to keep. What to do

    • Gerri Detweiler

      I don’t have a simple answer for your daughter. A landlord doesn’t have to take you to court before turning an account over to collections. And it’s very hard to undo these accounts once they have been turned over to collections. What she legally was responsible for likely depends on the contract and landlord tenant laws in her state, but the fact that she disputed the entire bill and didn’t pay the portion that she definitely was responsible for didn’t help here.

      The only thing I can suggest is that she try to get the landlord to pull it back from collections if she is willing to pay it. She may have to pay the entire balance though if she can get the landlord to agree to this. I wrote about that approach in this article: Reader Stops Mysterious Medical Bill From Damaging Her Credit The same principal applies here.

  • Kassi

    I have received phone calls from one number three sometimes four tines a day every day for the last few weeks. I have told them before that I don’t have money to send to them because the things my kids need and the other important bills I have to pay are more important that what I owe for something else. I have to hang on to every penny I earn just to get by. I’ve told them several times that soonercare has been giving me the run around as to why they wouldn’t back date for the medical bills that this number keeps calling me about. I’m also received letters form them saying what I owe but its never said to who I owed it too. I’ve been scammed by a so called collection agency in regards to an account that I paid on twice! Then I had someone else call me in regards to that account and they started asking me if my family could loan me the money to pay it. I’m tired.of sounding like a broken record. I can’t afford to pay my debts and have no idea how to go about getting it through their heads. We are still.in an economical bind and all they care about is taking money from those who don’t have it. The people who can’t afford their debt suffer the most and its not fair. I’m tired of the phone calls that constantly call my phone. I’ve had my number changed twice and they still some how get my new number.

  • http://ccomwp.wpengine.com/2011/04/eleven-ways-a-debt-collector-may-be-breaking-the-law/ Shar

    How long does an apartment complex have to report you to credit bureaus after you have moved out? Can they wait a whole year until they report you? and based on the amount whats the lowest the collectors will normally go on a percentage range?

    • Gerri Detweiler

      Shar – I assume that what happened is they turned over an outstanding debt to collections a year after you moved out. It’s not usually illegal for a debt to go to collections after a year, though I don’t know if landlord-tenant law in your state would require they notify you sooner.

      As far as how low they will go, that depends on so many different factors, including whether they bought the debt or if they are just collecting on assignment (which means they usually must collect more.)

  • Penelope Owens

    hello my name is penelope and I keep receiving threatening calls from this payday loan over 7 years ago and am being told that they have a warrant for my arrest on a loan originally 200 dollars and a couple of months ago it was 1645 dollars and now am being told to pay 645 and the harrassment continues daily and they have even asked my 73 year old father to pay it…. what to do because the harrassment never stops..

    • Gerri Detweiler

      Penelope – I don’t know what state you live in, but the statute of limitations have likely expired on this debt. That may not matter to these guys anyway though because the fact that they say the have a warrant for your arrest makes me believe you are dealing with scammers. I’d suggest reading this article: How to Beat Debt Collection Scammers at Their Game. You may want to also get a free Google Voice number and start using that. It makes it easy to screen calls and block numbers.

  • Brian Gagne

    My 15 yr old daughter received a call from Merchant Collections today. They are trying to collect a 3 yr old bill that we actually already paid. What really upsets me, though, is that they somehow got my daughter’s phone number. Are there any laws that specifically relates to calling minor family members? By the way, the bill had nothing to do with her – it was for my wife’s breast cancer treatment.

    • Gerri Detweiler

      Brian – Not specifically that I know of. These collectors use databases to gather whatever information they can use to contact debtors and that sometimes means they call neighbors, relative etc. They aren’t allowed to disclose or discuss the debt with a third party, however, and I assume your minor daughter would fall into that category. So you certainly can ask a consumer law attorney for an opinion on this.

      At a minimum, though, I would encourage you to file a complaint with the Consumer Financial Protection Agency and your state attorney general. I tend to agree with you – not good practice.

  • Michael chapman

    Went to the bank to get my first loan for a house
    Only to find that my wife who still uses her maiden name.( don’t know if that will help)
    Has forgot to pay some bills that showed up on my credit report
    So I call and they linked me to her bad credit that I didn’t know wasn’t paid
    From having a child yes with me ! One child before we were married and one after
    But can they just throw that stuff in my credit report ! One collector has me listed
    By my middle name not my legal first name maybe I can use that ? To say they never gave me notice there for no chance to pay ! I work in Alaska where I am a resident my mailing address
    Is in Montana so I am not home when the kids see the dr . One more question if she takes the kids to the dr. Isn’t that bill hers or does it automatically be put under the insurance providers name ?

    • Credit.com

      Michael – if you were on the accounts as a co-signer or joint account holder, then the accounts will be reported in both of your credit reports. If you’re not, and the accounts don’t belong to you, you’ll need to file a dispute with the credit reporting agencies to have them removed. Here are two resources that will explain this in more detail:

      Regarding the doctor visits, it would depend on the individual doctor’s office but typically, the medical provider will file claims directly with the insurance provider (if insurance information is provided by your wife). If the claims aren’t paid or the doctor doesn’t have the appropriate insurance information to file the claim, it will fall to the parent(s) of the child if the child is under 18 years of age.

      • Char

        Can a collector legally say “why do you need disability and you’re only 29″

  • Nicole

    I just recently received a notice of garnishment of my wages. Last week without knowing until I was paid the garnishment started. I replied for a hearing request and the debt collection agencies attorney called me right away. They are wanting a copy of my 1040 and the last 6 pay stubs to see if they will work out a payment agreement with me. The balance they are saying I owe is $10,900; however, my original agreement was for $10,500 and I have proof I have paid $8,000 of the balance at least. I am awaiting for the 10 day rights the attorney has to reply. I have requested a statement showing my payments and how the amount now owed is more than originally agreed and the attorney said he can not give me that information. Do you have any suggestions as to what I can do in this case?

    • Credit.com

      Nicole – this can get complicated so it’s important that you understand your rights and your options. A good resource to review (and that will explain your options in greater detail): Seven Ways to Defend a Debt Collection Lawsuit – http://blog.credit.com/2012/09/seven-ways-to-defend-a-debt-collection-lawsuit/

      This guide will explain exactly what a collector is required to furnish as proof of what you owe, etc. It also gives excellent advice on deciding when it’s time to hire an attorney and fight back. Def. worth the time to read.

  • Rochelle

    Hi
    I have an account in collections from a sprint phone account I made for my sister and she didn’t pay. It has been in collections for a few years now. I tried to (pay to delete) but they said no. A few months ago after their threats didn’t work, the collection agency took my account out of collections for 10 days and then put it back in. (I have been watching my credit report very closely) This caused it to look like a new account just went into collections. I applied for and received a new credit card but at 14.65 apr instead 11.25 apr.,stating that I had an recent account go into collections. Is it legal for collection agencies to do this. I noticed that after they did this, they stop calling but still own the account.
    Thanks

    • Credit.com

      Rochelle – the date that’s important is the date the account initially went to collections. If the collector changed that date and reported it to show that the collection just occurred, this is illegal. It’s called re-aging and creditors are not allowed to do this. You can file a dispute with the credit reporting agencies to correct the reporting error.

      If you can afford to pay the debt (or negotiate a settlement and pay it for less), it would be a good move to make. Otherwise, if the collector decides to sue in an attempt to collect the debt, it may lead to more headaches. If the collector sues you and the judge awards payment in their favor, you’ll end up with a judgment in your credit reports that will hurt your credit for another seven years. Here area few resources that explain everything in more detail, definitely worth reading if you’re dealing with a collection:

      To Pay or Not to Pay? The Question of Old Debts – http://blog.credit.com/2012/07/to-pay-or-not-to-pay-the-question-of-old-debts-2/
      Credit Report Double Jeopardy Means Double Damage – http://blog.credit.com/2012/08/credit-report-double-jeopardy-means-double-damage/
      Seven Ways to Defend a Debt Collection Lawsuit — http://blog.credit.com/2012/09/seven-ways-to-defend-a-debt-collection-lawsuit/

  • Amber

    I have a question. My husband had a collection agency contact him about a Walmart credit card from 7 years ago. His ex girlfriend opened the card in his name without his knowledge and now they are coming after him. He has told them over and over again that it wasn’t him that opened the card and they said that it doesn’t matter and that he has to pay it. What is the SOL in Florida. That’s where we live. Thanks

    • Credit.com

      Amber – this sounds like a bad case of fraud (and identity theft). If your husband truly had nothing to do with this account and this woman opened it without his permission or his knowledge, it’s illegal and prosecutable by law. If he doesn’t take the proper steps, the collectors will continue to come after him for the account and he may even be sued at some point. If he decides that he wants to fight the account and file charges, here’s a great resource on steps to take if you’ve been a victim of identity theft:
      Identity Theft Emergency: 5 Crucial Steps for Victims

      The statute of limitations in the state of Florida is 5 years for open accounts and 4 years for written contracts. Credit card accounts are generally considered open accounts while installment accounts – like an auto loan – would be considered a written contract.

      The full statute for the state of Florida can be found here: http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0000-0099/0095/Sections/0095.11.html

      The statutes are listed under 95.11(2)(a) and 95.11(3)(k), respectively.

  • Patricia Clark

    Help! I am in a dispute with a collection agency that put another individual’s debt on my credit report. I have a letter from the agency stating the debt would be removed, yet 6 months later, it’s still there. I am unable to get student loans for my daughter, it affects my homeowners insurance, and my own ability to get a loan. I keep trying to contact the compliance officer who sent me the letter stating the debt is not mine, but am not able to reach her because I’m being told the only way I can talk to her is through email. What can I do???

  • Michelle

    So a couple weeks ago Calif. Business Bureau contacted me about an old Judgement ( By default) from 2005. It was originally 4868.25. At one point or time ( over 5 years ago ) they had froze my account and I was being garnished for the debt. They have not collected from me in over 5 years, lost job, got new job, then lost that job….( I have no idea how much I paid already) They now say I owe them 7500.00 dollars. This is no longer on my credit report. I looked up the case online and it said – 08/18/2006: Writ of EXECUTION (EXPIRED) from Ventura County returned PARTIALLY satisfied. What does that mean and can they still try to garnish or freeze my bank account?

    • Gerri Detweiler

      Michelle –

      Please see a bankruptcy attorney right away. You should be able to get a free of low-cost consultation. They attorney should be able to explain your rights here and help you figure out what you can do about this judgment.

  • Beth

    I apparently have a store credit card that I was not paying on. It went to collections, and now they have called me and asked if I had a lawyer. I agreed to make payments out of my checking account. After reading all the horror stories, I am now scared to death! I just set the payments up tonight. Should I call my bank and close the account and then contact the company?? I feel very foolish, I am usually a little more savvy than this. I think the threat of needing a lawyer freaked me out, which is ( I am sure) what they wanted. What should I do?!?

    • Jennica

      Beth, they did that to me…but once they faxed me the paperwork and I saw the address of the people collecting was different than the internet was, I googled it. It’s a UPS STORE! The phone number listed on the fax has dozens of complaints online of scams. I had to cancel my debit card and inform my bank. I also filed a complaint with the state’s attorney and also have a lawyer in case they somehow manage to be legit and do serve me with papers. The man on the phone(the lawyer) told me first that by agreeing to the payment arrangement that the process server would be called back; then after they had my info, he claimed that the process server couldn’t be called back… the girl who was “processing” my payment kept putting me on hold to run to the fax machine- there was a lot of background noise- as if she’s working at said store! I asked for an address and why I couldn’t send money orders…never got answers to either. Also asked why a reputable firm doing debt collections would have to fax things from a UPS store. I was put on hold. I hung up. They left onemore message telling me it was imperative to contact them by the end of day or I would be served. That was Tues. It’s Sat. not only have the calls stopped, but nothing yet. I will keep you updated. I would contest the charges with your bank and have a lawyer on hand just in case. Did they serve you with papers? My lawyer also said these sort of things always peak around income tax time, FYI.

    • Gerri Detweiler

      Collectors usually do try to get debtors to agree to have their payments taken out of their checking account, and as you may know from reading our stories, we don’t think this is a good idea. (The Dos and Don’ts of Paying a Debt Collector). But that doesn’t mean you have to panic. You may want to consider just keeping enough money in that account to pay the collector and opening a new account for your other financial transactions.

      Also, you don’t mention how much you owe, how much you are paying, whether you can afford those payments etc. Do you have other debts you can’t pay? If so, your best bet may be to contact a consumer bankruptcy attorney. They can advise you of your rights here and help you figure out a game plan for dealing with these debts.

  • Mimi smith

    My fiancé has children with his ex wife. She will bring the children to the doctor or Hospitol and list him as being responsible as she still has his info with her Address. Needless to say there Re several accounts listed with the credit agencies. He pays for their individual medical plans and child support. Since he did not sign the Hospitol forms what do we do. We have called the Hospitol to request the forms proving he did not sign them and they refer us to call the collection company we ask them for the forms and are told call the Hospitol. We have written letters to both asking them to be removed from his credit to no avail, what do you suggest we do now?

  • Mandy H

    Is there in anything in the Fair Debt Collection Practices Act which would prevent a collection agency from continuing collection activity against me after an account has been paid off? I had a collection agency collecting several small balances from a hospital my husband had surgery at. I paid them all off in full in October 2012, in November 2012 the agency reported the items to Equifax all as zero balance items. I disputed the items with Equifax but they responded saying the items were verified as belonging to me.

    • Credit.com

      Mandy – Can you clarify what you mean by “continuing collection activity”? Are they still calling or contacting you for more money? If they are, and the debts are clearly being reported as paid (and you have proof that you paid them), we’d suggest contacting a consumer law attorney, preferably one familiar with FDCPA cases –you’d likely have a pretty strong case.

      On the other hand, if by “continuing collection activity” you mean that they are continuing to report the information in your credit report, that’s completely legal. When you pay a collection, the collection isn’t removed from your credit report. Instead, it’s updated to reflect that the account was paid (and would reflect a zero balance) and the account would remain until it expired. For collection accounts, this is usually 7 years from the date the account first went into serious delinquency status (typically at the 180 day late mark.) For a more in-depth explanation, here are two resources that will help:

      – Will Paying a Collection Account Remove it From My Credit Report?
      – How Long Does Negative Info Stay on My Credit Report?

  • Eric

    Quick question, I have a debt with Capital One (15K) it is in the name of a small business that I owned. Business went belly up, lost my job etc…I have tried working with Capital One to pay off my debt, offered a lump sum settlement of 80% which was rejected. I had to cash in an annuity to get this kind of cash but I was trying to avoid bankruptcy. My account was 3 months delinquent and in good faith I brought it up to date. They would not work with me on reducing my interest until I was up to date, well now that Im up to date and have been so for the past 6 months they still will not reduce my interest (18%) Im fed up with them and can no longer afford paying 260/mo in interest. Since that time I have paid double the minimum due and have talked with countless managers/departments at Capitol One, still no one will work with me. I was able to negotiate a lump sum payment with other creditors and no longer have any money left from the annuity that I cashed in. What are my options? Should I let it go to collection? Should I file bankruptcy? Im lost….any insight would be greatly appreciated!

    • Michael Bovee

      Eric – After getting through your other debts it would be a shame to bite the bullet and file for bankruptcy now. You said the 18% interest is unaffordable, but can you afford 300 a month as a flat payment (this would include the interest)?

      Settling with Capital One right before they charge off the account (between 150 to 180 days late), is an option. You would need to be prepared with anywhere from 40 to 60% of the balance.

      Letting the account get referred to outside collections means running the risk of the account being placed with an attorney collector. If that can be avoided, you should try. That said, you can only do what you can do. Settlements on Capital One accounts can be achieved with third party collection agencies and even collection attorneys.

      So, how about that lower monthly payment estimate of 300 a month? Is that out of reach?

  • Mary

    I live in Pennsylvania. Today I received a notice from a debt collector for over $9,000 from 2000 when my son was born. I am more than freaking out. I recently separated from my husband and am supporting two kids with barely any child support. I can’t even afford to get us our own place and we live with my parents. My position got eliminated at work and I took a very large pay cut. Meanwhile half my pay goes to the insurance payment every payday. That’s important because the name of the creditors listed changed as of 1/28/13 to the name of the medical group that treats my autistic son and I’m afraid they won’t see him till this is paid. also there is no actual due date on the statement, just the normal 30 days to respond stuff. I’ve been trying to fix my credit. it’s gone up 100 points in six months just because I’ve been so careful. now I just don’t know what to do.

  • Xiomara

    Another question: In college as most students do, I signed a year long lease with an apartment complex. In May I went through all of the trouble to find a renter, move my things out and hand in my keys to the apartment. The problem is I didn’t get anything in writing and my pm said I had to wait for move-in day to get this lease signing resolved–mainly because I kept checking day after day and she hadn’t even run the application!
    So, I already had a new place moved my stuff and everything. My renter also found another place and since I had nothing in writing, I am responsible. Understood.

    I did clean and turn in my keys. Asked if there was anything else I needed to do, they said no. Yes my records are vague and so are theirs. Sometime later I get a $2500 bill for two month’s of rent, break lease fee, etc. I did not contest this because at the time I had no job and was a full-time student but did not know my rights and laws as a tenant. Now almost 7 years later while checking my credit, I also see a judgement on only one bureau! This lady had taken an empty apartment to court stating that I left my patio furniture there when she went to do the walkthrough and since my lease had never been taken over she had to go through court to take possession!

    I called down to the clerk’s office and the original judgement is for $776. The interest has made this amount almost double. There are also two active collections accounts on my credit report plus the judgement for the same amount. When I called the complex it had been sold a few years ago and our files are not kept in that office so I could get no info. Here’s the question: Do I pay the clerk since I know this amount to be true and legal then ask the collector(s) to stop reporting? I do not want to pay these collectors until it falls off my credit since it’s so close. I don’t want my score to drop for trying to do something good! Is it legal to have two open collectors reporting and can I rely on them to enter a satisfaction of judgement once I get this paid or would paying the clerk the jgmt plus interest cover the amount of collections? How would I take care of this without nagatively impacting my report/score?

    • Gerri Detweiler

      Xiomara –

      With regard to the judgment, they can often be renewed indefinitely. So it probably makes sense to pay it so the balance doesn’t continue to increase and you find yourself owing even more. (Judgments can often be settled for less than the full amount if you are able to find out who owns the debt so you can negotiate with them.) Paying the judgment should not extend the time period it is reported as paid judgments may be reported for 7 years from the date they were entered by the court. (Unpaid judgments can remain longer than 7 years.)

      As for the other two collection accounts, it sounds like those may be duplicates. If that is the case, then I suggest you dispute them. You’ll learn more about how to do that in this article: A Step-By-Step Guide to Disputing Credit Report Mistakes

  • Melanie Resso

    Hi,
    I have a few questions regarding suing a credit bureau.

    My husband’s career in the military was ruined when he and his brother were lumped together by the 3 big ones. His brother had horrible outstanding debts. Husband didn’t. Somehow they were lumped together for YEARS. Even before my husband was 18, legal age for most of the debts.

    he lost his secret clearance, wasn’t able to rank up, etc. and lost his job due to this. he wrote letters and called the bureaus disputing his brothers debts on his file. He even ordered a credit check that when it arrived showed two different soc. #’s (1 his 1 his brothers) and different addresses.

    Here’s the kicker. On top of all this. Since they lumped them together. The police showed up in VIRGINIA looking for his brother at our address thinking he was his brother. We were stationed in VA, meanwhile all our family (brother included) was in California.

    Can you help or have any information?
    Thanks

  • http://fdcpa Diane Gray

    My husband and I purchases furniture from this furniture store in 1986, the store went out of business. Since then my husband passed, now the store has reopen 27 years later they have filed a claim against me to collect. What can I do to stop these actions.

  • http://consumerrecoverynetwork.com/ask-a-question/ Michael Bovee

    Pam – Yes, there is an applicable SOL (statute of limitations), for this scenario, and the debt is likely well beyond that. That SOL is for how long you can be legitimately sued to collect. The SOL does not make the debt disappear. It can still be collected on. Collection attempts will be limited to phone calls and mailed letters.

    If it were me in your shoes, I would send a cease communication letter to the debt collector certified mail return receipt requested. I would keep a copy of the letter and the return receipt green card in a safe place. If this same debt collector were to attempt any form of collection after that (calls to work and home), I would connect with an experienced fair debt lawyer (most take collection violation cases on contingency), and take this to the next level.

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