If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
Ignoring or avoiding the debt collector may cause the debt collector to use other methods to try to collect the debt, including a lawsuit against you. If you are unable to come to an agreement with a debt collector, you may want to contact an attorney who can provide you with legal advice about your situation.
If you get a summons notifying you that a debt collector is suing you, don't ignore it. If you do, the collector may be able to get a default judgment against you (that is, the court enters judgment in the collector's favor because you didn't respond to defend yourself) and garnish your wages and bank account.
You have the right to send what's referred to as a “drop dead letter. '' It's a cease-and-desist motion that will prevent the collector from contacting you again about the debt. Be aware that you still owe the money, and you can be sued for the debt.
A 609 Dispute Letter is often billed as a credit repair secret or legal loophole that forces the credit reporting agencies to remove certain negative information from your credit reports.
Typical debt settlement offers range from 10% to 50% of the amount you owe. Creditors are under no obligation to accept an offer and reduce your debt, even if you are working with a reputable debt settlement company.
Requesting a debt validation buys you time (at least 30 days) before collectors can sue you. Answer: The time you have to file an Answer with the court and respond to the debt collectors complaints is limited. Depending on your state, it can be as short as 14 days.
You're still liable for your bill even after it's sent to a collection agency. Many people don't want to pay collection agencies, perhaps because there's no immediate benefit for paying off the debt—other than ending debt collection calls.
Having an account sent to collections will lead to a negative item on your credit report. The mark is likely to stay on your credit report for up to seven years even if you pay off your debt with the collection agency. It's also possible that paying off your collection account may not increase your credit score.
Debt collectors have a reputation—in some cases a well-deserved one—for being obnoxious, rude, and even scary while trying to get borrowers to pay up. The federal Fair Debt Collection Practices Act (FDCPA) was enacted to curb these annoying and abusive behaviors. Even so, some debt collectors flout the law.
Debtors can negotiate with debt collectors to pay less than the amount they owe. Still, paying the full balance owed may be your best option, especially where your credit score is concerned.
If a debt collector fails to validate the debt in question and continues trying to collect, you have a right under the FDCPA to countersue for up to $1,000 for each violation, plus attorney fees and court costs, as mentioned previously.
There are laws about what someone can and can't do to recover a debt. They can't: send you to prison.
Six Year Limitation Period
For most debts, a creditor must begin court action to recover the debt within six years of the date you: Last made a payment. Admitted in writing that you owe the money.
If a Debt Collector obtains a Court judgment against you or your company, they can apply to the Court to issue a writ against you. This will result in the Court sheriff attending your house or business premises and seizing and selling your assets to satisfy the creditor's judgment debt.
One controversial tactic in debt collection is a relatively new term, debt shaming. This involves some level of public disclosure by the collector to bring attention to a debtor who has not satisfactorily paid their debt.
In their attempts to collect from you, debt collectors may use an aggressive tone, display no sensitivity or concern for your finances, or talk to you disrespectfully. Some collectors cross the line and use threats or scare tactics to try to get you to pay up.