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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.