Posted on 08/22/2007 12:59:18 AM PDT by Miztiki
Everyone should be aware of the laws and their rights. YOU could be the next victim! Click on the link for the article. Personal story below...
Now I know darn well that I don't owe anyone anything. This is either a flat-out mistake of some sort, or I'm a victim of identity theft, or...
I've been doing alot of reading and learning the last few days and there is something you should know about shady collection agencies that are better known as "junk debt buyers". They buy old, uncollected debt for pennies on the dollar.
Say you have an old account from 10 years ago that you thought was long gone. Well, if these JDB's can get you to make one tiny payment then that restarts the statute of limitations clock and that debt will be valid for another 7 years.
This collection of mine *might* be related to an old loan from 1997. I don't know for sure because there is hardly any info to go on. I was badly hurt in 1997 and became permanently disabled. I was young and only had two accounts; a truck and a small personal loan. Both were written off and I was offered best wishes by my creditors.
They showed up as "account closed or paid in full" on my credit reports over the years. Last summer when I checked my reports they had finally dropped completely off. That's the end of it, right?
Not really. These shady JDB's will re-age an old debt so that it looks current (which is illegal but they do it anyhow). This collection that just popped up has a last activity date of 4/2003. Now I know that can't be true because I didn't have any accounts at all until I got married 3 years ago, and since then I've had no trouble paying my bills. All accounts from the 1997 era were written off and closed out.
There is much to say but I wanted to warn everyone about this new crop of scumbags called junk debt buyers, and they are affecting just about everybody now. They are barely legal but often use illegal tactics to get their money. They prey on those who are unaware of the law and unaware of their rights.
YOU could apply for a loan one day and be denied, just to find that a JDB has bought your debt. If you don't know what you're doing then it can ruin your credit for many years. Educate yourself so that you don't fall victim. Do a google search for "junk debt buyers" because chances are, one will ruin your day in the not-too-distant future.
Add in identify theft by illegals, courtesy of the lovely college deciding to produce a directory that listed names, addresses and social security numbers back in 1999...
The junk debt buyers pop up on me all the time, and I watch my credit crash like a truck running into a wall. I had three trying to collect for electric bills at three separate addresses in cities 70 miles apart, all listed as primary address. Every time these bozos pop up on the credit report, I notify the officer at the local police department to add yet another line to my crime report, and they fax off a copy, and the JDB goes away until they can pawn it off on someone else.
Just think, a million dollars of bad debt can be yours for only a thousand dollars or less.
Good info to know. Hope you are doing better.
I’m ok, thanks.
I have learned so much these past few days about JDB’s and how shady they are. They can really ruin people’s lives too, so it’s important that people know their rights if a debt collector contacts them, or if their credit score suddenly drops for no apparent reason.
What are their rights? Is there a place on the internet that may discuss old debts etc? I had a call similar to this awhile back and all my old debts had been paid off for many years and I check my report regularly etc. It was all very odd, not to mention if the debt was real it was well over a decade old. Since I have been living in the same residence for so very long and easily found to be contacted I was really dumbfounded if real how come it took them so long?
ping for later
I’m still learning but I’ve found the following helpful:
Google “junk debt buyers” just the way I typed it; it will lead you to all sorts of info including what your rights are and what the laws are.
Visit this discussion forum:
http://creditboards.com/forums/index.php?s=ebb3986d8d95199dddd1be1e015e871b&showforum=2
(scroll down past all the “pinned” threads)
Those two can help you more than I can.
All I know for sure is that if you pay any amount on an old debt, it restarts the clock all over again and then you could be in a heap of trouble (judgements, garnishments, etc.), so read up before you pay anything or even admit that you are responsible for the debt. Acknowledging the debt is bad, particularly if it’s not yours or if it’s past the SoL.
These JDB’s are really shady and the laws are not in place yet to properly regulate them, so be wary and educate yourself so that you don’t inadvertantly screw yourself over.
Thanks so much for posting this!
So they screwed up your FICO score, but has anyone tried to collect? What’s in it for them if they don’t try to collect?
The problem with this is that if I wanted to get a loan right now then I would be charged a higher interest rate thanks to this bogus collection in my credit report, or I might even denied. This crap is happening at an alarming rate to people just like you and me.
I’m sending the following letter to the collection agency today (certified mail, return receipt requested) but they have 30 days to respond. These JDB’s have a history of not responding, or only providing some info in order to drag things out, or flat-out lying even, all in the hopes that you’ll pay them some money. If you do pay any amount then you’re screwed. If you dispute it then it can take months, even many, many months. In the meantime your credit looks bad and any credit card companies you have an account with could jack up your rates.
These JDB’s are cockroaches and as dangerous as identity thieves! It’s illegal for them to even report an account beyond the SoL to the CRA’s (credit reporting agencies) but they do it anyway, figuring most don’t know their rights or can’t afford an attorney.
Letter...
.
.
To whom it may concern;
I just noticed on my credit report that you have a collection against me. I don’t owe anyone anything.
I urge you to take a second look at the facts surrounding this collection. If after a thorough review you still feel that this debt is accurate then please send me proof of your ownership of this debt, original account number for this debt, date account was opened, date of last payment, date of last activity, total amount due, and an explanation as to how you arrived at that total. Also, please verify the name of the account holder, the city and state the account was opened in, and the name and address of the original creditor. You have 30 days.
If you are unable to prove that this debt belongs to me and is legit and legal then I would appreciate a quick and complete deletion of this collection from my credit reports. Otherwise I will have no choice but to sue. My health is not good and I have no energy to bother with a fraudulent collection. Please be advised that I would seek monetary compensation for my troubles along with any other related expenses.
I would like to see this matter taken care of and my credit rating restored without delay. I’m confident that this is simply an oversight on your part and will be resolved very soon.
Thank you for your prompt attention to this matter.
No one contacted me for collection, it just popped up on my credit report and lowered my credit rating significantly.
See post #10 for what’s in it for them.
I just came across this article that you might want to read:
http://www.associatedcontent.com/article/91731/understanding_timebarred_debts.html
With the new bankruptcy laws expect things to get much much worse.
BUMP
This isn’t really “new” as it has been going on for awhile. But you are correct, you do have certain rights when it comes to debt collectors. It is important to document all communications with these people. I had a similar experience years ago, and I sent everything registered mail and I have all receipts, even today.
The key is to not need your FICO score. Don’t go into debt. Instead of paying a car payment, pay yourself. I’m amazed at people who go in debt 6 years for a car. These are usually the same people who want a new car every 5 years.
Buy a beater, pay yourself $400 a month and then use that money in a few years to buy a car. I had a friend who looked at a Chevy Caprice for $2000. He countered my argument for it by saying he could buy a new car that got better gas mileage for $15,000 and it would be under warranty. I told him that he could buy a lot of gas and repairs for $13,000 and he wouldn’t have to pay the interest on the loan.
I’ve heard that somewhere before.
And I do that as well The Biased family drives nice Automobiles and doesn’t have car payments.
But car payments are the American way?
The FICO Score is rated on Debt and debt payments (that is essentially all). It has nothing to do with how much money you have. I don’t have a FICO Score and own a house car and other stuff.
I don’t need a FICO score. Cause I don’t need debt.
My dad was a car dealer. He once told me that eventually dealers would make more money on loaning money than selling cars.
You go into a dealership to buy a car with a promised 2% interest rate. When you sign the spotty line saying you will buy the car, everything becomes negotiable including the rate. Everything is made on the payment. If they can get you up $20 on a 60 month note, that’s profit. To you it is $20 but to them it is $1200. I meet few people who get the low rate because people who buy cars based on the payment are suckers and usually have spotty credit. That 2% becomes 14% in a snap.
By the time I wrote the company I was getting pretty steamed so on the advice of an attorney I glided the lily and told them I'd been turned down for a job because of the erroneous collection (which was a total billing mistake on their part).
The logic is that if they think you have specific damages because of their error it'll light a fire under them.
Not only did I get the collection removed but I got a written letter from the CFO admitting their error ostensibly so I could show my prospective employer but it was nice to have in case I wanted it inserted in my credit file.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.