There was recently a post by a concerned mother re: debt collection company. If there is one thing consumers should be aware of, is their credit report. I am currently and for the past 10 years, a manager for special loan mitigations department for one of the biggest credit unions in the US.  Here are some important information you need to know when debt collectors are contacting you:

  1. If you have borrowed money from a pay advance company, they will forward your information to third party collection companies until one has successfully skipped traced you. This is the same for medical bills, gym membership, or any utility company you may have had going back 7 years.
  2. Commercial Banks and some credit unions may have to charge off a debt you didnt pay, or your ex-spouse wouldnt pay. (Divorce situations, depending on the state you live in, is a VERY sensitive situation whick I can offer assistance if you need any). Your charged off debt can be sold to one collection agency for a year and then they sell your info/debt to another.
  3. YOU OWE THE DEBT UNTIL YOU HAVE OFFICIALLY LIQUIDATED THE DEBT THROUGH BANKRUPTCY!
  4. Know your credit, keep your identity safe! You, as the consumer, have the right to ask the debt agency to send you proof of the debt they are collecting on. They should provide a statement of the origination of the debt, date, and original amount. Interest and late fees can still continue to accrue!

As long as you have verified that the debt is not reporting on your credit, you can provide that to the company. Or, if you find that the debt is listed on your credit, make sure you dispute it immediately!

Hope this gives better insight and detail of debt collectors. Not all are bad, and if you choose to avoid the nice one's, you'll get a rude one eventually! Call the collectors back and make a good faith effort to pay your bills!

MomReinvented @ Parents Reinvented

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