Starting in spring of 2017, the IRS plans to allow private debt collection agencies to retrieve outstanding tax debt from consumers on behalf of the government. Signed into federal law under the Fixing America’s Surface Transportation Act (FAST Act) in December 2015, the aim is to help retrieve a whopping $380 billion that the IRS […]
Warning: IRS Partners With Debt Collection Companies Read More »
Dealing with debt collection agencies is never pleasant and you may find that some are especially persistent —and rude. While debt collectors are required to follow certain laws and regulations, many are guilty of bending or breaking the rules. It’s important to remember that debt collectors are trained to do everything possible to collect the
5 Lies Debt Collectors May Tell You Read More »
Have you ever had a crazy debt collector who just wouldn’t leave you alone? I’m talking about the kind of bill collector that calls you at all hours of the morning and night, who calls over and over and over again, or who calls you on your job – even after you say you can’t
Debt Collector Harasses Consumers, Slapped With Record Fines Read More »
Dealing with debt collectors is stressful. They call at all hours of the day and night. They hound you for money – whether you’re working or unemployed. And they generally make life unpleasant when you owe them, or one of their clients, cash. But just because you owe a company money doesn’t mean they have
Learn How to Deal with Creditors and Get Out of Debt Forever Read More »
Creditors can sell your debt. When your debt is sold to collectors, some might use the threat of court action to try to intimidate you in order to get you to pay up.
Technically, it is illegal for collectors or creditors to threaten court action if they do not intend to carry through with it. Taking you to court is time consuming and expensive for them, and there is no guarantee it will result in the outcome the creditor wants. So typically, a court action is a tactic to get you to pay up, or to obtain a default judgment against you if you don’t respond to a summons and complaint.
5 Tips if You’re Facing Court Action from a Debt Collector Read More »
FICO 08, the updated version of the widely used credit score, brought a welcome shift for consumers. According to FICO, collection accounts with an original balance below $100 are no longer factored into the score calculation. Tom Quinn, a representative from FICO, explains, “The logic is that for small dollar amounts, like a public library
Will a $50 Collection Account Hurt Your Credit Score? Read More »
Q: I Live in Michigan and Lost My Job in May 2009. I have Quite a Bit of Credit Card Debt that is in My Name Only. My Only Income is Unemployment. I Do Not Have a Bank Account in My Name. My Unemployment is Deposited to My Husband’s Bank Account. If I am Sued, Can a Creditor Seize My Husband’s Account Even Though It Isn’t His Debt, since the Unemployment is Going Into His Account?
Can a Creditor Seize My Husband’s Bank Account If I am Sued? Read More »
If harassing calls from debt collectors are keeping you from answering the phone — or stressing you out — you’re not alone.
Amid the tough economy, debt collection activity has intensified, with some debt collectors engaging in unfair, abusive or illegal practices. The Federal Trade Commission says it gets more complaints about debt collectors than any other industry. In 2009, the agency received 88,190 consumer complaints about debt collectors, up 12% from the year before.
Never Say That To A Debt Collector Read More »
Q: I have a recent outstanding debt on my credit report. When I settle it, can the collection agency state as part of their negotiation that they will also remove it from my credit report? A: If you agree to a settlement with an original creditor or with a collection agency, they can do anything
Q: Should I pay off old debt from department store credit cards that are at least 10 years old? It seems like my creditors re-sell my old credit accounts to a new collection agency every few years. A: If a delinquent debt is more than 10 years old, it should have already fallen off your
Should I Pay Off 10 Year Old Credit Card Debt? Read More »
A Facebook fan who has a medical bill that got overlooked after she lost her job was contacted by a debt collection agency who said they have added $150 to the bill as processing fee. She wanted to know if is advisable to contact the medical billing company directly after it has gotten to this
Got Medical Bills in Collections? Avoid This Scam Read More »
If you can’t pay a debt, creditors are willing to settle out of court with you for a lump sum payment of less than the amount you owe, or a monthly payment plan, but they also will not hesitate to sue you for the full amount of the money you owe them. So what should
Why You Should Answer a Summons on Debt Collection Read More »
Consumers often pay off debt for which creditors can no longer seek legal action because the Statute of Limitations has already expired for the account. Consumers pay off these accounts perhaps because the accounts still appear on their credit reports, they fear court action, or they simply don’t know their rights. There are even cases
Statute of Limitations on Debt Read More »
Beware of calls from “zombie” debt collectors. These are bill collectors that try to get people to pay money on debts that were allegedly incurred 10, 15 or even 20 years ago. I received such a call today from a Christian Gable of National Action Financial Services (Phone: 866-529-1885). They claimed I owed money on
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