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DON'T BE HAMMERED BY YOUR DEBT

DON'T BE HAMMERED BY YOUR DEBT

Wednesday, February 18, 2009

Problems Debt Collectors Don't Want You To Know About #1

There are lots of problems a typical debt collector has in collecting your debt.  Usually, you as the debtor have no idea the problem even exists and so it never comes to light.  In today's debt market and economy, perhaps the biggest problem a collector has is producing a documentable chain of ownership.  Simply explained; you have a legitimate debt, you ran up a credit card that you now can't pay, you had medical bills you couldn't pay or you borrowed money and can't pay it back.  You didn't pay your debt and the original creditor, rather than hound you or after hounding you with no success, bundled your debt with a batch of other debt and sold it for pennies on the dollar.  That package of debt has now probably been sold and assigned several times since then.  Now, a collection agency has your debt (with tons of interest and collection cost and fees added on) and is calling and writing you demanding payment.  One of the most effective tacks to take as a debtor is to say, "yes, I may have had a debt with XYZ, but I don't know who in the world you are.  If you can send me written documentation that you either own this debt now or are authorized to collect it, then I'll pay it." Immediately follow that verbal request up with a letter (ALWAYS certified mail, return receipt requested) asking for the same documentation.  If the collector can't produce that record of ownership or authorization to collect, then they can't collect the debt.  Often times, the collection agency or debt buyer has actually legally purchased the debt for real money.  But that transaction is part of a complicated and lengthy legal document that they have absolutely no desire to share with you and to which a standard floor collector has no access.  It may be simply easier for the collector to move on to the next more compliant debtor. 

16 comments:

Anonymous said...

Michael, I just want to thank you for this site, and for not giving it up! The information you've posted here is invaluable, and I'm very grateful to you for posting it. I shudder to think that you might have closed it last November - that would have been a real loss. I hope you realize that, though we may not always respond to your posts, we nevertheless get good advice from them, and I sincerely hope that you keep on posting.

Thank you, thank you, thank you.

Anonymous said...

I am in a situation where a collection agency is calling me daily and threatening to sue. You, more than any other resource, have made me aware of my rights and abilities in this situation. Thank you for making me an informed participant, and for giving me some hope.

Kitty said...

Michael,

I am being sued by Citibank via an attorney's office in Richmond. Spitzer et al. I answered and countersued. Today I receive notice that Spotts Fain is taking over to represent citibank. What happens to my countersuit, since some of it was directed directly at Spitzer for not abiding by collection regulations? Do I request a continuance, dismissal? Thanks in advance for your help

Anonymous said...

This is the best blog in the world. You said something that gave me an idea to settle a case. You had mentioned about how unfazed you were by the "threat" of "I'll file bankruptcy."

I had a case where the creditor was suing to enforce a judgment. After thinking about your statement, I figured out what I needed to do.... I went ahead and hired a great (and well known) bankruptcy attorney to represent me in settling the case.

That way, we didn't have to make the threat, the collector knew where we were possibly going with it. In the end, we settled a debt that was $25k (plus interest) for $10k.

In my case, the reality was: if they had insisted on pursuing the whole $25k, I would have had to file BR. AND, I was fortunate enough to have a lump of money to pay that off. BUT, I'm certain that my choice of lawyer helped the case significantly. Thanks for sparking the idea.

All the best on your new career choice. Thanks for the great blog, and please keep it going.

mylyndoll said...

Michael,

Thanks for continuing to publish the blog...it has been a lifesaver to me, as well.

I have a debt that originated with Providian in 1996 and the acct. was sold in '04 to Asset Acceptance when the credit was around $9k. (And not because I actually HAD $9k in credit). It is now showing on my rpt. as $22k...absolutely proposterous and I have written them to show me that they own this debt and they never do. I'm going to have to insist that they "prove it or lose it" very soon.

Thanks again, Michael for keeping the blog up and running!

- Lyn
myslyn@aol.com

Anonymous said...

Wonderful Blog! Thank You so much for your work! I have a situation where I am trying to vacate 4 judgments dated 4, 5 years back about which I only did find out when my Bank put a Levy on my account. I have no idea what those creditors/ collectors are. I was never served with any papers. In few weeks I will try to challenge METRO PORTFOLIOS INC and UNIFUND CCR PARTNERS and their lawyers (?) in NYC. If I lose, I will just file a bankruptcy since I am not working still due to medical problem and negative credit report prevents me from even getting a job in a future - given I get my health improved.

Blessings to You!

W.

Anonymous said...

My name is Allen, 46 years old. I was severely wounded by head trauma 18 years ago. I can no longer work. I draw a disability check and it's what I live on. I own an old 30 year old mold infested mobile home. I can no longer acquire a drivers license (none for over 15 years) DMV will not issue me one because my doctor will not allow it. I blackout and suffer from seizures. I cannot walk without assistance. Yes, I owe money and creditors are after me even after all these years. I have nothing and I have no way to pay them. I own nothing but this old trailer house. I barely live on enough to pay my space rent, food meds, paying someone to take me everywhere I go. still, I am visited and hounded to death. What should I do?

Anonymous said...

Dear Allen I too suffered head trauma and as a result spent years in & out of mental hospitals & institutions, 10 years ago I found myself being manipulated and as a result needed to take a loan the person took me to the bank and even told me what to say/write I ended up taking a £3700 loan which I was having difficulty paying back the person told me that I should take more out to pay it back, I don't know how much I did take but I am told that I must pay 21,000.
I have very little but they the agency keep pushing up my monthly debt, I feel as though they are bullying me into paying what I cant afford.
I am really down but can't see anyway out of this quagmire.
But I have a place to stay and I don't have fits so I suppose I am very lucky, I do hope they leave you be.

Hu

Anonymous said...

Good post and this post helped me alot in my college assignement. Thanks you on your information.

crystalized said...

i am being sued by citi bank the messed up thing is that i did not authorize the card it was never in my posession. come to find out my ex husband got the card and put me as a second card holde3r rang up 4,000 dollars worth. then he filed bankrupcy. so citi bank is coming after me cause i was supposely the second card holder cause they cant touch him cause he filed bankrupcy. can they do that i need advice i go to small claims court 2/10/10

crystalized said...

i am being sued by citi bank the messed up thing is that i did not authorize the card it was never in my posession. come to find out my ex husband got the card and put me as a second card holde3r rang up 4,000 dollars worth. then he filed bankrupcy. so citi bank is coming after me cause i was supposely the second card holder cause they cant touch him cause he filed bankrupcy. can they do that i need advice i go to small claims court 2/10/10

crystal said...

i am being sued by citi bank the messed up thing is that i did not authorize the card it was never in my posession. come to find out my ex husband got the card and put me as a second card holde3r rang up 4,000 dollars worth. then he filed bankrupcy. so citi bank is coming after me cause i was supposely the second card holder cause they cant touch him cause he filed bankrupcy. can they do that i need advice i go to small claims court 2/10/10

Anonymous said...

I have a debt I could not pay last year. The collection attorney stated they would garnish my payroll checks.That was May of last year.One week ago, they put a legal hold on my checking account: the funds where for classes for my college summer session and I attempted to make a settlement offer, accepted a settlement.The branch representive called to get my credit card account number to get the money faster, but they did not file a judgement in court.Is this legal? can I file motion to keep them from taking the funds from my account?

Anonymous said...

I have recieved a summons from a debt collection attorney. I must answer the summons. gave a business and $290,000 worth of rental property (our retirement) to a bank to get out from under faling business. Now 3 years later I find out old business credit card debt was not paid. Only ncome is husband's retirement (firefighter) and all we now own is some good equity in our home of 24 years. Can they make us sell our home if a judgement is won? We will have no way of buying anything else as our credit is now ruined. any advice?

debt collectors said...

I understand that there maybe instances that a debtor cannot pay his debts on time. When this happens debts turn into a heavy expense. Bad debts, if not dealt with immediately, can accumulate and become a black mark on a company's balance sheet. For such cases, hiring debt collectors is highly advisable.

Graeme Byers said...

Hi, This information about Debt collection is very informative.Credit card debt is example of unsecured consumer debt, accessed through credit cards.If you getting deeper in debts, its better to start negotiating with Debt Collectors. Debt recovery
Thanks for this post.