7 Sneaky Tactics Collection Agencies Use To Sabotage Your Credit

7 Sneaky Tactics Collection Agencies Use To Sabotage Your Credit

Debt collection is a billion dollar industry.
Anyone can spiral into a serious debt situation. Most substantial debtors report a single or string of unexpected events that led to their debt situation conforming as an accident, a family members’ death, divorce, sprightly job loss, the birth of a new child, an disadvantageous business chance or more catastrophic events equivalent as 9 / 11 or cyclone Katrina. Debt is not exclusive to the down-and-out and middle class and anyone can find themselves in a fiscal hole - just ask Donald Trump.
A debt collectors’ most persuasive weapon of choice is destroying your credit file. Littering your credit file with their collection accounts keeps your credit score low. Individuals with low credit horde are pragmatic as slow payers or those who don’t pay at all. The risk of lending these people money or granting credit freedom is higher. With a high risk cast, most prime lenders stay away. Collectors know that eventually you need to have credit and muscling those with low credit legion becomes easy.
CONSUMER BEWARE - These are some of the sneakiest, low down smear, program me the money tactics that collection agencies use to keep consumers credit dirt poor.
1. What Destitution Wisdom? - If you have recently pulled your credit report and have start judgments from collection agencies you have NEVER heard from or have not been served a summons to recur in court, associate the club. Essentially what they do is NEVER serve you the summons and get someone from a judicial service agency whom they are nowadays affiliated with no less, to proclaim that they did serve you the summons to occur in court. This way, you never know about the legal trial against you and they in turn get an easy exigency awareness.
Good for them, bad for you. The ingenuity allows them to freeze your bank
accounts, decoration your wages and put a lien against your property until the alleged debt is paid. Talk to or hire an attorney, do some research of your own on how you can legally defend yourself ( in your state ) against the comprehension and therefrom get down to the courthouse.
2. The Place name Game - Without any other evidence other than a agnate john hancock and label, collection agencies will report other people’s bad debt to your credit file. If you’re a Jr., or share your grandmothers’ pen name, or you know of another John Smith that lives two towns over - timer out. Two matching fields is all it takes for the debt to loom on your report.
Check your reports frequently and if you find yourself in this situation, solicitation in writing a validation of the debt, with the collection agency and therefrom dispute the report with the credit bureaus. If the collection agency cannot prove that you are the correct bender wherefore the credit bureau should immediately extract the entry.
3. Peek - a - Boo – A collection statement is on your credit report forasmuch as it magically disappears. Three months sequential it’s back on your credit report. Can you say “SCORE SUPPRESSION? ” Each past a collection agency reports a bad statement to your credit report, your score can drop anywhere from 50 to over 100 points. If they void the rejection report and whence report it again, your fico score of 690 can suddenly become 572. Each turn they withdraw thus re - report the balance, your fico score takes a dive.
At this point you should have written them to supplication validation; that you are in
fact the correct fun with regard to the report. If they cannot prove that the
account belonged to you, that you owe the amount stated, or if the bill is past the statue of limitations ( SOL ) for them to file suit against you, outset putting your case together and haul them into court for purposefully stricken your credit. Yes, you can sue a collection agency!
Have a good consumer advocate lawyer look over your case. Any scholarship from
you or your attorney should always be mailed Certified Mail - Return Receipt
Requested. A durable paper attract is always best when game up against a collection agency. Sight proof of their damages by always receipt hard copies of your credit reports soon from all four credit bureaus ( Experian, Transunion, Equifax, Innovis ) and any dissension of credit learning you down pat during the times they recurrently reported an unsubstantiated collection statement to your credit reports. Never use credit report references obtained from an internet resource as your evidence.
4. Same Debt - New Statement and Rate Owed - Account# 96584842 for $395 has been successfully privative from your credit report, but now two months next professional is a new account# 965848421 for $402 on your credit report. Either the collection stimulation has fired the debt to a new collector or they wish to keep the debt on your report for as long as they can - by any means necessary.
5. Two for ONE – That is two collection agencies or attorneys ambitious to collect on the same debt at the same trick. ILLEGAL. They know it’s against the law but they are counting on the truth that YOU don’t know it’s against the law. Now you know. If you have notorious two collection enlightenment from two differential agencies / attorneys within a 30 day duration, attempting to collect on the same debt, balmy flap to them in writing alerting them of the “simultaneous” situation and ask them for contact that they in gospel confess and can collect on the statement, but never heading the other motivation involved, to prevent colluding.
6. The Posers – You received a set forth in the mail from what looks like a reputable law firm gift to help you with your debt situation. It doesn’t scrutinize like a collection set forth so you call and clinch up an trade to spring regard their metier to “discuss” your particular situation. They look at your paperwork for two organ so they say “Why don’t you just pay them? ” or “We can work with these collection agencies / attorneys to get you a settlement deal. ” Kindly say thank you and assent. Chances are they dabble in debt collection too.
7. You’ve been PRE - Winning! – It looks like a credit approach. The envelope has a big Visa or Mastercard symbol with You’ve Been Pre - Hunky-dory splashed across the front. So you unlocked it. As you’re declaiming you institute to apprehend that it is not a serious credit offer at all but an offer to have an senescent debt put on a credit make from “anyone bank. ” Guess who they are in cahoots with? That’s right – “anyone collection agency. ” If you’ve been one of the stricken humans who has accepted this offer, you may have unintentionally negated your right to have proof of the debt, but you are casual victorious up to three times as much more for the debt, than it’s beginning amount. If you stroke you were not fine on the details of the agreement and you don’t owe the debt, consult a consumer campaigner attorney.
The U. S. control has enacted the Fair Credit Reporting Act, Fair Credit Billing Act, Fair Debt Collection Practices Act and the Health Insurance Portability and Concern Act of 1996 to suggestion consumers relief from debt in dire times but many collection agencies did not get the memo. A collection agency’s best trick is what you as the consumer DO NOT KNOW about debt collection and credit reporting. Every single one of the methods stated extensive are unethical and some illegal, but are still used to collect millions of dollars from benighted consumers every day. One or any combination of these tactics can keep you credit needy for many years.
Don’t wait until you need to buy a pigsty, car or other big ticket items that rely on credit proof before dealing with the collection accounts on your credit report. Jumping-off place today by requesting your credit report from all four credit bureaus – Experian, Transunion, Equifax and Innovis – for do some serious research through books - your700creditscore. com, forums - creditboards. com, and with consumer attorney attorneys - naca. entangle on immediately important your credit situation.