How do I deal with this debt collector?

Question

I have a collector calling me and stating that I owe $10,000 to my former University; The debt is from 2001 and the collector sent me documentation from the school as proof of the debt. I also called the school and they said it was legit.

The collector gave me a payment option as a large down payment along with monthly payments over a period of time but I cannot afford them at this time. They also sent me a letter saying that my debt can be litigated and a judgement can be obtained against me and they are prepared to review my account for possible litigation.

The debt still has NOT gone on my credit report either. What are my options to take care of this and is it strange that this debt hasnt gone on my credit report after almost 7 years?

As strange as it sounds, I was truly unaware of this debt until i was contacted by the collector recently. I have moved several times but no one EVER contacted me through phone or mail.

Any help or advice would be appreciated.

Answer 1

You can still tackle this...from all angles...

1. Order your credit reports from the 3 bureaus

www.equifax.com

www.experian.com

www.transunion.com

If you're ordering for the first time, get your score (for a fee) from Equifax as their scoring matters most.

2. Make copies of your report and put the originals in a binder. On the photocopied reports use a highlighter and check for any incorrect, outdate, false, etc...info

3. Download a dispute letter(s) from the credit bureaus website and list anything that is wrong. Mail them to their office(s). They have 30 days to reply.

4. If they will not remove something that is not yours or too old (> 7 years) as them for a debt validation. This may take an additional 30 days.

5. Once the 'baddies' come off, take care not to let any of your other accounts fall into that predicament.

6. If you haven't already make sure your existing accounts are current and paid on time ALWAYS.

7. Get a secured credit card with www.capitalone.com or www.mastercard.com for like $500-1000 or more if you can and use it sparingly. Charge like $50 on the card each month and pay it in FULL and on TIME. Make sure you do this for a minimum of 6 months so that you estabish a positive repayment history.

8. Problem with just letting them 'fall off' is that they may never. You may get sued before that...that's where you suddenly get a summons to appear in court and a judgment for collection against you.

For the 2 collection items...pay them but get a 'pay for delete' from the collectin agency in WRITING...they'll delete it after you pay and it will help your credit score

Answer 2

U MAY want 2 read this;

STOP DEBT COLLECTORS IN THEIR TRACKS

The federal Fair Debt Collection Practices Act was enacted to stop abusive, deceptive, and unfair debt collection practices by debt collectors. If you believe you have been the victim of unfair practices of a debt collector, contact YourCollectionRights.com for a FREE* evaluation of your debt collection issues.

Under debt collection laws, you may be entitled to money damages AND payment of your attorneys’ fees, if a debt collector has violated the law.

You Have the Right to Stop Debt Collectors from Harassing or Abusing

Yes, the law protects you against unfair and coercive debt collection methods. You must know how the law can protect you and help you keep him in check.

A debt collector CANNOT:

telephone you an unreasonable number of times

telephone you at an unusual time/ unusual place

disclose information of your debts to third parties

use profane or other abusive language

contact you after written notification that you do not want to be contacted any further

claim to be affiliated with any governmental organization

misrepresent the character, amount or legal status of a debt

threaten of to take any action that cannot be taken legally

accuse you having committed a crime

threaten or communicate false credit information

•    attempt to collect, until he honors your request to validate

use deceptive methods to collect debts

call you before 8:00 a.m. or after 9:00 p.m.

call you, but not announce who he/she is

and more

You can:

reduce or completely zero out your interest payments

avoid or reduce late payment fees

combine several loans into a single payment plan

get a single, low monthly payment to clear all your creditors

get errors in your credit reports rectified

get invalid or time-lapsed entries in your credit reports removed

get peace of mind and more

Ten Things Bill Collectors Don't Want You to Know

by John Barnes

Copyright © 1994 Nolo Press

   1. The More You Pay, the More They Earn

   2. Payment Deadlines Are Phony

   3. The Don't Need a 'Financial Statement'

   4. The Threats Are Inflated

   5. You Can Stop Their Calls

   6. They Can Find Out How Much You Have in the Bank

   7. If You're Out of State, They're Out of Luck

   8. They Can't Take It All

   9. They May Not Know a Thing

  10. You Can Pay Student Loans in Installments

  11. Side Bar--How They Find You

For many people, the cold call from the bill collector is an intimidating and even humiliating experience. They are unprepared to deal with collectors, who are trained to handle every type of response. Relentlessly assertive, collectors focus on "the close" -- your commitment to pay.

The less knowledgeable you are about your rights, the more confident a collector becomes; the more worried you are, the less concerned the collector becomes. Collectors know that it's easier to manipulate a conscientious debtor into a payment plan that benefits the collector, not the debtor.

You'll be in a better position to resist collectors' pressures, and negotiate a sensible repayment plan, if you're prepared for the tactics they're likely to use. Here, then, are ten of the best-kept collection secrets.

1. The More You Pay, the More They Earn.

Collectors get commissions -- usually 30 to 50% -- on money they bring in, which often double or triple their salaries. This means they have a strong incentive to press for a big "down payment" from you, even if this deepens the cycle of debt.

Collectors hoping for a big commission may claim that the boss insists on a big down payment. In fact, blaming it on a mythical manager is designed to deflect your anger away from the collector.

2. Payment Deadlines Are Phony.

Payment deadlines set by collectors are meaningless. Collectors simply want to create a sense of urgency, because the longer it takes to get you to pay, the less chance there is of collecting the debt.

3. They Don't Need a 'Financial Statement.'

Collectors often claim they need a "financial statement" from you, so they can work out a realistic repayment plan. You'll notice, though, that the information they ask for -- bank account numbers, references, place of employment -- is far more than they need for that purpose. They're fishing for information that will help them find you if you move or sue you if you don't repay the debt.

4. The Threats Are Inflated.

Collectors always graphically detail the disastrous consequences of failing to pay a debt. "Your credit rating will be ruined," they warn. (Not mentioning that it's probably already not so good, since a collection company is after you.) "Your personal possessions, including your car, could be seized and sold at a public auction!" (Never mind that this virtually never happens; it's illegal in some states and impractical because of the expense.) Probably 95% of the time, collectors go after only bank accounts and wages.

5. You Can Stop Their Calls.

You have the right, under federal law, to tell a collection agency to stop contacting you. Just do it in writing, and contacts must stop, unless they're to tell you that collection efforts have ended or the agency is going to take a specific action (like filing a lawsuit) against you.

6. They Can Find Out How Much You Have in the Bank.

A collector who has your bank account and social security numbers can probably easily find out the balance of the account. Because big banks now have automated account inquiry systems, the collector doesn't even have to speak to a human being; all it takes is a phone call to the automated voice-mail service. When the account number and social security numbers are punched in, the computer promptly supplies an up-to-the-minute account balance.

7. If You're Out of State, They're Out of Luck.

Collection agencies routinely call out-of-state debtors to demand payment. But if a creditor has sued you and won, you are probably safe from enforcement action if you bank and work outside the state where the lawsuit was filed. That's because to collect, the collection agency must transfer the judgment to your state, which is prohibitively time-consuming and expensive.

8. They Can't Take It All.

Certain income, such as social security, pensions and 75% of your take-home pay, is exempt from enforcement action. You can file a claim of exemption from a garnishment of the other 25% of your wages if it would cause you or your family severe hardship.

9. They May Not Know a Thing.

Sometimes a collection agency lawyer, trying to collect a judgment debt, sends questions on a court form asking about your income and assets. (These are called "post-judgment interrogatories" or "information subpoenas.") This is good news for you -- it means that the agency has no information and is hoping you will be intimidated enough by this legal questionnaire to complete it. Many people do, because the forms list sanctions, such as fines, for not doing so. But normally, it is too expensive and time-consuming for an agency to go to court and force compliance.

10. You Can Pay Student Loans in Installments.

If you are behind on student loans, you can apply for what every collection agency hates: "reasonable and affordable payments" under the 1992 Higher Education Act. If you can document financial hardship, a collection agency must accept as little as $10 per month for at least six months. As long as you make the payments, you are eligible for Title IV Student Aid, and you can continue the payments unless your circumstances change.

How They Find You.

It isn't hard for collection agencies to locate most debtors. Here are some of their common sources:

Credit Checks

Your credit file is a wealth of information. To see whether a credit bureau -- and therefore a collection agency -- has information on where you work and bank, request a copy from TRW, Trans Union or Equifax. (But realize that when you tell the company where to mail your report, that address will make its way into your file.)

Telephone Information

Even if your phone number is unlisted, a collector always checks the address. If you have an unusual name, the collector calls all numbers with that name, looking for a relative. A favorite technique is to leave a message with a relative, asking you to call a number collect. If you call, the collector accepts the charges -- and contacts the operator to find out the number you called from.

The Post Office

Using a post office box as your mailing address doesn't deter a collection agency. For a small fee, the post office will provide a box holder's street address if it's available.

Mailing Lists

Most consumers' addresses (and sometimes, phone numbers) have been sold to companies that collect mailing lists and sell them to collection agencies.

Answer 3

The statute of limitations on defaulted student loans was eliminated by the Higher Education Act. Section 484A removes all limitations and gives the Department of Education or the guaranty agency (bank or lender) the ability to file suit, enforce judgments, initiate offsets, or other actions, to collect a defaulted student loan regardless of the age of the debt. Statutes of limitation are no longer valid defenses against repayment of a student loan.

Here is a web site that can provide you with more information on what you can do.  Either way, the debt will have to be paid but there are ways to work it out.

Hope this answers your question

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 4

Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:

http://redirx.com/?0g4c

Answer 5

I suggest sending a dispute letter, and cease communication by phone, only discuss this debt in writing, certify the mail you send.  Don't agree to pay an amount you are not able to afford.  Check your rights, after 7 years it should be closed.