What to Do If a Debt Collector Asks for Money You Don't Owe
If you think you don't owe some – or all – of the debt, or you just don't recognize it, send the collector a letter disputing it. Be as specific as possible about why you think the debt is wrong – but give as little personal information as possible.
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If the creditor reported you to the credit bureaus, your strategy has to be different. Ignoring the collection will make it hurt your score less over the years, but it will take seven years for it to fully fall off your report. Even paying it will do some damage—especially if the collection is from a year or two ago.
You might get sued.
The debt collector may file a lawsuit against you if you ignore the calls and letters. If you then ignore the lawsuit, this could lead to a judgment and the collection agency may be able to garnish your wages or go after the funds in your bank account.
Here are a few suggestions that might work in your favor:
Wage garnishment typically starts within five to 30 days after approval. The exact time will vary depending on the creditor and the state.
No. Debt collectors are prohibited from deceiving or misleading you while trying to collect a debt. Debt collectors are generally prohibited under federal law from using any false, deceptive, or misleading misrepresentation in collecting a debt.
The Fair Debt Collection Practices Act (FDCPA) spells out your rights as a consumer. One of those rights is that they can't lie. ... Additionally, debt collectors can't take or threaten to take your property unless it can be done legally. This primarily refers to debt that's past the statute of limitations in your state.
A 609 letter is a method of requesting the removal of negative information (even if it's accurate) from your credit report, thanks to the legal specifications of section 609 of the Fair Credit Reporting Act.
According to the CFPB, the collector would have to confirm it has — in addition to the usual info — account number associated with the debt, date of default, amount owed at default, and the date and amount of any payment or credit applied after default.
If the account has been sold to another creditor, then that creditor must prove that it has the right to sue to collect the debt. ... Often such proof will be a bill of sale, an “assignment”, or a receipt between the last creditor holding the debt and the entity suing you.
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