NEVER PAY COLLECTIONS! Why you should never pay Debt Collectors!

Did you know that paying a debt collector doesn't raise your Credit Scores?

When you pay a debt collection agency, most people think it's going to help raise their credit scores, but paying a collector does NOT increase your credit scores.. It makes sense, when paying something negative on your credit report, it should come off your credit... But here is why you should never pay a debt collector...

When you pay a debt collection account is DOES NOT come off your credit report, in fact, sometimes it will stay on your credit report for longer than it would if you left it alone and didn't pay it. Crazy right? So what happens when you pay a collection account? The collection stays on your credit and just reports as a paid collection. The Fair Credit Reporting Act states that an account can report on your credit for 7 years from the date of last activity and a payment can be considered activity.

Expert Credit Advice - What can you do if you have a debt collection account:

1) Work with a Credit Repair Company to try to remove it - It can be removed is they are violating any consumer protection laws (I'll help you check it out during your free credit consultation).

2) Study the Fair Debt Collection Practices Act and try to see if the Debt Collector violates any laws, which is actually VERY VERY VERY Typical. OUR Attorneys work for you at NO COST!

3) A debt is mandated to be removed from your credit from 7 years from the date of the debt - I can help you remove accounts that are over 7 years old.

NEVER PAY A DEBT COLLECTION AGENCY, Work to remove debt collections from your credit report. Know your legal rights. Please subscribe.

[RhinoXpress]

Most debt collectors won't even brother taking you to court and suing you if the debt is under 5 grand. It's not worth the court fees and lawyer fees for them to do it. Remember they bought your debt for 25 cents on the dollar in most cases. So while they're looking to get the full amount of your debt, they only actually paid a fraction of what the debt is actually worth. Now if these debt collectors decide to just give up chasing you or the statue of limitations expires, they are required to hand the amount of what the debt is worth to the irs and the irs will look at any debt that you didn't pay as earned income, and you'll get a 1099c from the irs. Even settled debt will get a 1099c from the irs because the irs will look at the debt that you and the debt collector decided on not to pay, as earned income. Now if you can't even afford the taxes on your debt, you can claim insolvent, but you'll need to provide proof that all of your assets combined value don't exceed the amount of debt that you owed or else you'll still owe the irs those taxes from that debt.

[brookwest]

One Powerful trick is ask to them provide a certified copy invoice of how much they paid for the debt. Under 7310 they can't demand that u pay them in a specific manner. Supreme Court case Montgomery Ward v Glacier you can pay in Coffee

[robertwhite]

This was a good insight. I’m in the state of Ohio & the statue of limitations is (6) years. Time frame a debt collector can take legal action. How ever if the debt is outside that time limit there’s nothing they can do. To be honest I’d say check with the laws in your state . Every state is different. & know your rights .

[AmericanPride]

I been working very hard paying off old debt and settling debts since November last year. I have paying one debt about once a month since. I just sent in a final payment today by bill pay for another settlement. Each time an account has been paid or settlement my score increased 4 points.




5-13-19

[jonsmith]

Even when an account is past statue of limitations, a debt collector CAN sue.They hope the person does not show up, then they get a default judgement.However, if the consumer shows up, and shows the debt is outside the statute of limitations for their specifc state. Then, it would be dismissed.

[captainobvious]

How can a debt collection agency sue you when you are not in contract with them?

[ANTZPoundPound]

What if it's Assets Acceptance LLC, who is using a 3rd party law firm in Florida claiming to a judgment creditor, collecting on their behalf? How to deal with A judgment creditor who is Garnishing your wages from a 'SO Called Judgment'' from 2005, That you Have no recollection of and they won't provide proof?!! Also How can I Protect my back account from being Levied from them by Florida Law? Is There a Certain limit amount thats PROTECTED BY LAW, That can't get garnished from your bank account? Is There a Process for filing with the court on this matter? Please Respond ASAP! Thanks.

[Mark-ybsp]

This is probably the best seminar I have heard on debt collection.

[theghostofmrcow]

I will usually ask the debt collectors, how much they acquired the debt from capital one. They hate that question.

[RitaLynn]

You know what really sucks is when you pay a debt off, and years later you start getting collection calls about it saying you still owe it. This happened with a Walmart credit card I had several years ago. I paid it off, they then charged it off and have again sent it to collections. It was never noted or reported on my credit report as paid. I had a similar issue with Verizon phone service. I had a house phone-land line- but never had a wireless cell phone with them. I paid the house phone bill completely with nothing owed as I was switching companies. I then started getting bills for that "debt" and a wireless bill as well. Thing is there are many other people with my name. I think there is some fraud or mistaken identity going on here.

[mselmo]

When I had filed for taxes and had not received any refund for the amount the IRS had said I would be receiving. I had contacted the IRS to find out why and they had said that my tax refund went to pay off a debt with the State Department of Education and now every year my refund is going to pay off a debt to the State Department of Education until paid in full. So, I asked the IRS how was the State of Education allowed to take my taxes when I had never received any letter from the State of Education saying I owed them any money. They took away my right to dispute the debt by not even letting me know about the debt until after they had taken my taxes. The IRS gave me the address that they had told the IRS that they had sent out to me which was not even my address nor any city that I had ever lived in. So I called the State of Education and asked them why would they send out a notice of debt to an address in a city that they were fully aware of that I did not and had not lived at that address. They asked for my address which I provided. Then they sent out a letter to me saying I owed them that money. But I honestly don't know the reason I owe them that money when I supposedly defaulted on a loan and if so with what school and where is the proof of something I signed requesting a loan. I never received a school loan unless they are referring to FASA I received a school grant but could not attend the classes but didn't return the grant money. They never gave me any specifics as to what school I owned so I don't want to assume that it was about the FASA grant I had received. I still had a right to receive notification of the debt at my real address rather than a fake address.

[twinsnake]

this sound like the company that I need, but I can't afford a down payment on a hot dog right now. much less a month fee.

[acrispymustache]

I have $500 in debt from century link that I didn’t pay because I unknowingly was put on a contract. When I went to cancel service, they told me I agreed to a contract and that it was going to be around $300 to break my contract. I refused to pay because I did not sign or agree to a contract. A few months later, I got a letter from a random company saying it got sent to collections and I need to pay them the $500 or legal action will be taken. What do I do?

[aandpdummieslikeme]

Hello-

I live in West Virginia, and yesterday, I got a call from a woman from AMG Services regarding a debt from 2002. According to her, I took out a credit card with City FInancial Services that had a $592.00 balance on it and I stopped making payments in 2013.

I honestly do not remember taking out this credit card, so I told her I wanted something in writing. She stated it would be in a summons and that if I did not agree to pay them $592.00, they would sue me for $7K.

I have written a letter to them stating I want written proof that I owe this debt. I do not own anything, except a car that I bought 2 years ago, and I am currently making payments on it. I also live paycheck to paycheck and have very little in my savings account.

The woman stated they would send a sherriff to serve me the summons, so if they do, I will definitely take your advice and show up to court, but in the meantime, what else should I be doing about this? What is the abolute worse thing that can happen to me?

Thank you.

[allantaylor]

I would recommend that you ask the debt collector their reporting procedures. Some are different from others. Some debt collection companies completely remove from the credit report when the balance is paid in full. Ask how often they report and to which bureaus Some companies don't report the debt immediately which means if you pay the debt before it dings your credit, you would do well to preserve your credit score and keep it off. There is a window of 60-90 days from the date of referral in some cases. Word of wisdom, don't ever intentionally anger a debt collector. That will get you sued quick.

[JesseRodriguezCreditAdvisor]

Never pay a debt collector - unless you want to lower your credit score

[SakuraMichi]

The thing is that even if debt collectors keep violating the laws always and the FDCPA practices, they hurry up and sue the consumer to enforce payment😕

[stevenmiller]

Under the Vantage 3.0 credit scoring paying off a debt eliminates the debt from your credit report and dramatically raises your credit score.

[thatclover]

I live in Oregon I lost my job the debt collectors here sue in just a couple months - every time an account goes to them I sit in fear because they will all sue here and garnish

[daleparkes]

I believe the statute of limitations in California is normally four years.