Tips to Successful Bad Debt Collection
by debt consolidation on May 15, 2009
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They have nothing to lose at this cost and agressively call you, using threats, unlawful hours, calling your friends, family and employers, mis-represent themselves as something of an official law professionals and use abusive talk tactics and a lot of 'moral' lecturing about your obligations, automatic dialers etc. - completely ignoring their legal rights. Often, the debt is not even valid: Out of its Statue of Limitations, or has been discharged in bankruptcy, paid off, never existed to begin with (but sounds valid because it's a small amount related to a creditor you've used in the far past) or they don't even own it and fail to show a paper trail with signed bills of sales that connects them to your original creditor, and the original creditor's signed agreement with you. In many cases they practice without license in your state too. Often, they turn the debt over to a collection lawyer, which is nothing more than a paper mill that files tens of thousands of lawsuits per year while failing you respond to your debt validation and cease and desist requests (this is illegal). To each such lawsuit they add thousands (or tens of thousands) of dollars which you have never awed anyone as their arbitrary legal fee or interest and other bogus fees. Their most common practice is to file an arbitration claim - which you will lose (because they own the arbitration agency or have great influence over its justice as their top client, and they make sure it's in a venue to which you will find it hard to travel).
Then it's time to sue you in order to get the court to force you to pay - here too find creative ways to win, mainly avoid serving the lawsuit to you properly (mailing it to wrong address or paying a court server that will chuck it and testify that he served you, so they have done nothing wrong). This way they can stand in front of a judge and assure that you are not there, (Recent investigation in NY found that 93% of people never knew they were sued). Now with you not showing, they get a default judgment against you which allows them to garnish your paycheck or freeze your bank accounts.
Use extreme caution before talking to them or giving them any money. this will NOT fix your relationship with your original creditor, nor will it positively affect your credit (no matter what they promise, they will leave their own report on your credit, as well as the original creditor's report). Do the research and you will find that most of these are operated by some of America's most notorious crime syndicates. Their own stories are full of murders, suicides, jail time and fraud. always pay your debt, just avoid giving your hard earned cash to organized crime that does not consider any payment as a satisfaction of debt. spend $1000 on a lawyer and in most cases you will win 3 years ago Reply