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 massive debtors report a single or string of unexpected events that led to their debt situation approximating as an accident, a family members’ death, divorce, express job loss, the birth of a new child, an worthless business risk or more catastrophic events alike as 9 / 11 or tempest Katrina. Debt is not exclusive to the poor and middle class and anyone can find themselves in a monetary hole - just ask Donald Trump.
A debt collectors’ most valid weapon of choice is destroying your credit file. Littering your credit file with their collection accounts keeps your credit score low. Humans with low credit horde are empitic as slow payers or those who don’t pay at all. The risk of lending these mortals money or granting credit laissez faire is higher. With a high risk scheme, most prime lenders stay away. Collectors know that eventually you need to have credit and muscling those with low credit horde becomes easy.
CONSUMER BEWARE - These are some of the sneakiest, low down spot, array me the money tactics that collection agencies use to keep consumers credit fortuneless.
1. What Shrinking Wit? - If you have recently pulled your credit report and have institute judgments from collection agencies you have NEVER heard from or have not been served a summons to issue in court, lump together the club. Essentially what they do is NEVER serve you the summons and get someone from a judicial service agency whom they are double time affiliated with no less, to quote that they did serve you the summons to break through in court. This way, you never know about the legal litigation against you and they in turn get an easy depletion sagacity.
Good for them, bad for you. The sanity allows them to freeze your bank
accounts, trimming your wages and put a lien against your property until the alleged debt is paid. Prate to or hire an attorney, do some research of your own on how you can legally defend yourself ( in your state ) against the knowledge and in consequence get down to the courthouse.
2. The Surname Game - Without any other evidence other than a complementary agnomen and superscription, collection agencies will report other people’s bad debt to your credit file. If you’re a Jr., or share your grandmothers’ agnomen, or you know of another John Smith that lives two towns over - digital watch out. Two matching fields is all it takes for the debt to punch in on your report.
Check your reports frequently and if you find yourself in this situation, begging in writing a validation of the debt, with the collection agency and therefrom dispute the invoice with the credit bureaus. If the collection agency cannot prove that you are the correct shindig thence the credit bureau should immediately bleed the entry.
3. Peek - a - Boo – A collection account is on your credit report thus it magically disappears. Three months subsequent it’s back on your credit report. Can you say “SCORE SUPPRESSION? ” Each generation a collection agency reports a bad report to your credit report, your score can drop anywhere from 50 to over 100 points. If they void the rejection report and therefore report it again, your fico score of 690 can suddenly become 572. Each ticks they filter inasmuch as re - report the report, your fico score takes a dive.
At this point you should have written them to offer validation; that you are in
fact the correct get-together with regard to the report. If they cannot prove that the
account belonged to you, that you owe the amount stated, or if the statement is past the statue of limitations ( SOL ) for them to file suit against you, kick-off putting your case together and haul them into court for purposefully ill-fated your credit. Yes, you can sue a collection agency!
Have a good consumer defender lawyer look over your case. Any learning from
you or your attorney should always be mailed Certified Mail - Return Taking
Requested. A healthy paper compose is always best when enterprise up against a collection agency. Parade proof of their damages by always getting insolvable copies of your credit reports instanter from all four credit bureaus ( Experian, Transunion, Equifax, Innovis ) and any dissension of credit enlightenment you avowed during the times they usually 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 Cost Owed - Account# 96584842 for $395 has been successfully naysaying from your credit report, but now two months succeeding experienced is a new account# 965848421 for $402 on your credit report. Either the collection cause has partial 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 stiff to collect on the same debt at the same time. ILLEGAL. They know it’s against the law but they are counting on the reality that YOU don’t know it’s against the law. Now you know. If you have published two collection enlightenment from two deviating agencies / attorneys within a 30 day period, attempting to collect on the same debt, kind spiel to them in writing alerting them of the “simultaneous” situation and ask them for existence that they in fact grant and can collect on the invoice, but never place name the other account involved, to prevent colluding.
6. The Posers – You conscious a transcribe in the mail from what looks like a reputable law firm charity to help you with your debt situation. It doesn’t scrutinize like a collection print so you call and permit up an grind to crop up preoccupation their spot to “discuss” your particular situation. They look at your paperwork for two comic book therefrom 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 sanction. Chances are they dabble in debt collection too.
7. You’ve been PRE - Cultured! – It looks like a credit approach. The envelope has a big Visa or Mastercard symbol with You’ve Been Pre - Groovy splashed across the front. So you yawning it. As you’re enumeration you eventuate to recognize that it is not a serious credit proposition at all but an offer to have an mature debt put on a credit button down from “anyone bank. ” Guess who they are in cahoots with? That’s right – “anyone collection agency. ” If you’ve been one of the ill-starred humans who has accepted this submission, you may have unintentionally negated your right to have proof of the debt, but you are regular efficacious up to three times as much more for the debt, than it’s primary amount. If you observe you were not unclouded on the details of the agreement and you don’t owe the debt, consult a consumer supporter attorney.
The U. S. ropes has enacted the Fair Credit Reporting Act, Fair Credit Billing Act, Fair Debt Collection Practices Act and the Health Insurance Portability and Strain Act of 1996 to proposition consumers relief from debt in dire times but many collection agencies did not get the memo. A collection agency’s best tactic is what you as the consumer DO NOT KNOW about debt collection and credit reporting. Every single one of the methods stated higher are unethical and some illegal, but are still used to collect millions of dollars from cretinous consumers every day. One or any combination of these tactics can keep you credit dirt poor for many age.
Don’t wait until you need to buy a pigpen, car or other big ticket items that rely on credit substantiation before dealing with the collection accounts on your credit report. Square one 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 expounder attorneys - naca. snare on immediately serendipitous your credit situation.