Credit & Collections

[dstroyed]

I hate credit agencies and collection agencies. You are guilty till proven otherwise and then they will just find another agency to come after you.

I’m self employed. My business partners and I have 7 different entities that we operate through.

I had a collection agency trying to hit my personal credit for a workers comp payment this summer where the hospital said I personaly came in a gave them my personal guarantee I’d pay. BS i never went in with my employee i didn't eve know until the next day. What they were doing is illegal from what my WC insurance company told me. WC company shut them down very quickly, never heard from the collector again.

My business partner had a $80 phone bill with ATT. He dropped them and they sent this bill say the last payment wasn’t made. It was but they continue to attempt collection. He has disputed it every time. Just hit him again for the 3rd or 4th time in 5 years. At what point will they stop. It’s easier to just pay it but then he will have the hit on his credit.

Experian, Oh man, I’ve about had enough of them. They report data by address. No not by legal entity name, EIN, Tax ID but your address. Think about this for a minute. We have been in business for 11 years. Take 6 companies with multiple business partners and several different office locations along with home address and po boxes. If the credit reporter doesn't have your business name correct or if its abbreviated no problem they will take what you got. They don't verify anything thats my job. If i don't want to monitor they will be happy to for a FEE. WHAT MESS. They have some companies listed 3 different ways with no consistent names or data. One company they have 3 Key people listed and I don’t know who they are!! Oh yea they say they will fix it. 30 -60 days. If I can’t figure it out how are they and they won’t share any info for me to help unless I want to buy each report for $49.50. Thats about $1000 for all the reports they have on us.

Do you know how hard it is to speak civil with these people and not drop the F bomb every other word with an occasional MF added in there!

Thanks for listening. If you have any tips on dealing with Experian I would appreciate it.

Edited February 4, 2009 by dstroyed

[davidwiz]

We (on behalf of numerous clients) have sued the snot out of various collection agencies, collection attorneys, and credit bureaus. A lot of them think that they are above the law and can do whatever they want. Sad to say, but it usually takes filing a lawsuit against them to make them see the light.

All of the credit bureaus are bad. They absolutely refuse to comply with the Fair Credit Reporting Act.

The best think that you can do when dealing with any of the above is to always send your correspondence via certified mail, return receipt requested, and via regular mail and keep a copy. Document everything. If you feel that the credit bureau, collection agency is not complying with the law, then, at the very least, I would suggest talking to an attorney who handles consumer credit issues. Your local county bar association most likely has an attorney referral service. Or, you can pm me and I'll see if I can help.

[dstroyed]

Fortunately it hasn't created any credit or day to day business issues, yet. If I don't get Experian corrected it could impact on light credit scoring since its all spread out over all the differ addresses they have for each biz. I need it all consolidated.

[Rob Boudrie]

My business partner had a $80 phone bill with ATT. He dropped them and they sent this bill say the last payment wasn’t made. It was but they continue to attempt collection. He has disputed it every time. Just hit him again for the 3rd or 4th time in 5 years. At what point will they stop. It’s easier to just pay it but then he will have the hit on his credit.

1. Googe for "zombie debt".

2. If you pay any part of the debt it will reset the 7 year "Aging" clock until it disappears from your credit dossier

3. You can make an individual agency halt by telling them they are not permitted to contact you, and that you may be contacted only in the service of legal process (see the federal debt collection act for details)

4. Never concede the debt exists and is valid. Demand proof - many times, agencies by computer files stating you have debt but do not have any proof.

[davidwiz]

2. If you pay any part of the debt it will reset the 7 year "Aging" clock until it disappears from your credit dossier

That's not entirely accurate. Depending upon state law, once the statute of limitations (SOL) has expired, in order for the SOL to restart, the debtor must re-acknowledge the debt. For example, in PA, the SOL on a contract or credit card debt is 4 years and if the SOL has expired, the debtor must re-acknowledge the debt in order for the SOL to restart.

3. You can make an individual agency halt by telling them they are not permitted to contact you, and that you may be contacted only in the service of legal process (see the federal debt collection act for details)

Good advice, but I wouldn't hold my breath waiting for them to honor it. We've had collection agencies (and law firms) continue to contact our clients after they were notified that the person was represented by an attorney (a major violation of the FDCPA).

4. Never concede the debt exists and is valid. Demand proof - many times, agencies by computer files stating you have debt but do not have any proof.

Very good advice. We've blogged about these issues several times: http://phillylawfirm.blogspot.com/search/l...Consumer%20Debt

[Ted Murphy]

I agree with you.

I pulled my credit a few months ago. Apparently I look great for my age since according to my credit file I was born in 1940. (I'm actually 37)

When my dad divorced he moved in with me. The credit agencies merged our information. I have all his judgments and liens on my file now.

I'm just starting to get that crud cleaned up.

[SiG Lady]

Experian, I found out suddenly one day, had typed in my Social Security Number incorrectly somewhere along the way in their records (just one digit off) and it reflected the records of some weird woman in Texas... who'd neglected to pay ANY of her bills for months and therefore had ghastly credit. This all triggered the discontinuation of my only credit card. Talk about shock and awe!!

My credit card company was extremely sympathetic, did some on-the-spot investigating and could see the error plainly, but since it wasn't THEIR error they couldn't make the correction in the records. I had to write to Experian and explain what they'd done to my reputation, etc. They're required to resolve this kind of problem within 30 days according to the law, and indeed they did. Meanwhile, I had to borrow a family member's credit card to continue to do business on eBay and PayPal (I was selling heavily on eBay at the time) until the problem was resolved and the stoppage on my credit card lifted.

It was THEIR error, not mine. It could've been life-ruining if it'd gone on much longer. I was suitably upset about all of it.

----------

Meanwhile in my bankruptcy work at the office, I see ALL manner of collections details and documents, and hear all manner of freak-outs from clients who are harangued and harrassed by some of the more aggressive companies attempting to collect.

[Merlin Orr]

A big long rant deleted to keep me from getting any higher on the Watch List.......

[Rob Boudrie]

That's not entirely accurate. Depending upon state law, once the statute of limitations (SOL) has expired, in order for the SOL to restart, the debtor must re-acknowledge the debt. For example, in PA, the SOL on a contract or credit card debt is 4 years and if the SOL has expired, the debtor must re-acknowledge the debt in order for the SOL to restart.

I was thinking of the case where you are 5 of 7 years into the SOL, and make a payment before SOL expired. It's my understanding that such a payment would reset the last activity date and you'd start on the SOL all over again. There is also the chance that the creditor would take the position that payment on a post-SOL debt was in fact re-affirmation of that debt.

My credit card company was extremely sympathetic, did some on-the-spot investigating and could see the error plainly, but since it wasn't THEIR error they couldn't make the correction in the records.

No, but they could have re-issued you a card. If they did not do so, it was because the company was choosing not to do so, not because they "couldn't". I'd find a new company as soon as the mess is straightened out.

[VegasOPM]

My brother lived with me for 9 months and brought a morass of Zombie debt with him. Along with phone calls and letters. It was fun to give them the run-around for a while "no- he is in prison" or "hell, he owes me more than that, why would I want him to pay you before he pays me?" (of course, that was the truth). It finally just got boring. I never answer the phone unless I know the number or they leave a message.

[dstroyed]

A big long rant deleted to keep me from getting any higher on the Watch List.......

It was tough for me to keep the post at a respectable level for this forum too. Thanks

[styx]

I'm preparing myself mentally for this year's round with these people. Even though I've been divorced since '02, collection agencies spend the first six months of every year trying to browbeat me into paying her delinquent bills. It's usually just a PIA to deal with these people, but every once in a while I end up having to get an attorney involved. However.......there is a bright side........it can be very satisfying to get REALLY NASTY with some professional anal orifice.

[davidwiz]

If anyone has questions or issues with dealing with collection agencies, debt collectors, collection attorneys, etc. feel free to IM me, and I'll see if I can help.

[sperman]

Debt collectors started calling me several months ago because some deadbeat gave them my phone number. I recieved at least one call a day asking for soemone I had never heard of. I tried repeatedly to convince them they had the wrong number, but they refused to listen. I finally got fed-up and decided to play the game their way. The conversation went something like this:

Collector: "May I speak to Chris"

Me: "Go ahead"

Collector: "Do you realize you are several months behind on your car payments?"

Me: "Yes. I'm not giving you any more of my money."

Collector: "When are you going to return the vehicle."

Me: "I'm not. Come repo it."

Collector: "OK. Where can we find it."

Me: "I'm not going to tell you that."

Collector: "So you're not going to make any more payments and you're not going to return the vehicle."

Me: "I think you're starting to figure it out."

After a few more minutes of him trying to comprehend what I was saying he hung up. I haven't heard from them since.

[KGentry]

Debt collectors started calling me several months ago because some deadbeat gave them my phone number. I recieved at least one call a day asking for soemone I had never heard of. I tried repeatedly to convince them they had the wrong number, but they refused to listen. I finally got fed-up and decided to play the game their way. The conversation went something like this:

Collector: "May I speak to Chris"

Me: "Go ahead"

Collector: "Do you realize you are several months behind on your car payments?"

Me: "Yes. I'm not giving you any more of my money."

Collector: "When are you going to return the vehicle."

Me: "I'm not. Come repo it."

Collector: "OK. Where can we find it."

Me: "I'm not going to tell you that."

Collector: "So you're not going to make any more payments and you're not going to return the vehicle."

Me: "I think you're starting to figure it out."

After a few more minutes of him trying to comprehend what I was saying he hung up. I haven't heard from them since.

That is great!!! I do this all the time - I get these phone calls from agencies trying to collect from people we do not know and it is fun to play with them.

[Ted Murphy]

I had a collector call me once and asked me to knock up at my neighbor's house and tell him to pay his bills. I hung up on him.