Collection Agency Tricks
- Date: 2007-04-25 - Word Count: 322
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Debt collection agencies often use trickery and dishonesty in order to get your money. While it is understandable that they want to get paid you should know the truth about your rights. If you are aware of the tricks they use you will be less likely to come out on the short end.
Statute of Limitations
The statute of limitations refers to a time period during which a creditor may have legal recourse against you. The length of time varies by state, but always begins when you made your most recent payment. Once the statute of limitations passes creditors lose their ability to take legal action.
Collection agencies are well aware of the statute of limitations. They often try to get you to make any sort of small payment in order to extend the length of time they have to sue you. Generally they start out demanding that you pay the full amount. When you explain that you aren't able to pay they will begin to lower the payment amount, often as low as five dollars. Keep in mind that the person on the phone has a job to do. They are required do anything they can to get you to send in a payment.
Collection agencies have been known to actually make a small payment to themselves in your name. If they are unable to get you to send in a payment this is a sneaky way to try to extend the statute of limitations. If you ever find out that such a payment has been made contact the FTC and report it.
There are many companies that specialize in the buying and selling of old debts. In most cases the statute of limitations has passed, but this does not stop them from being aggressive with you to get your money.
If you are on the receiving end of these calls don't let fear influence your decisions and know your rights.
Statute of Limitations
The statute of limitations refers to a time period during which a creditor may have legal recourse against you. The length of time varies by state, but always begins when you made your most recent payment. Once the statute of limitations passes creditors lose their ability to take legal action.
Collection agencies are well aware of the statute of limitations. They often try to get you to make any sort of small payment in order to extend the length of time they have to sue you. Generally they start out demanding that you pay the full amount. When you explain that you aren't able to pay they will begin to lower the payment amount, often as low as five dollars. Keep in mind that the person on the phone has a job to do. They are required do anything they can to get you to send in a payment.
Collection agencies have been known to actually make a small payment to themselves in your name. If they are unable to get you to send in a payment this is a sneaky way to try to extend the statute of limitations. If you ever find out that such a payment has been made contact the FTC and report it.
There are many companies that specialize in the buying and selling of old debts. In most cases the statute of limitations has passed, but this does not stop them from being aggressive with you to get your money.
If you are on the receiving end of these calls don't let fear influence your decisions and know your rights.
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James writes about Fix bad credit. For more information on Credit Counseling Services for Consumers please visit Creditfixtips.com. Your Article Search Directory : Find in Articles
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