Use this 11-word phrase to stop debt collectors: “Please cease and desist all calls and contact with me immediately.” You can use this phrase over the phone, in an email or letter, or both.
On the other hand, here's what you shouldn't do. Don't give a collector any personal financial information, make a "good faith" payment, make promises to pay, or admit the debt is valid.
Send a 'drop dead' letter
You have the right to ask them to stop contacting you. To do so, you can send what's sometimes referred to as a “drop dead letter” — a written notice to the debt collector informing them you want no further contact. By law, debt collectors are required to follow this request.
You cannot remove collections from your credit report without paying if the information is accurate, but a collection account will fall off your credit report after 7 years whether you pay the balance or not.
Under Australian law, a debt collector must not: use physical force. use coercion. unduly harass or hassle the debtor.
If you don't pay a debt collector or collection agency, you'll likely face increasing efforts to collect the debt via phone calls, letters, or even social media contact. Not paying a debt in collections will also hurt your credit score. If you don't pay, the collection agency can sue you to try to collect the debt.
If the agency can't provide proof, you owe the money, by law, they must stop collection efforts. If you don't owe the bill, don't pay anything — ever. Even if you're willing to pay cash so the agency will go away, it's not a good idea. Payment is considered an acknowledgment that you are responsible.
You should dispute a debt if you believe you don't owe it or the information and amount is incorrect. While you can submit your dispute at any time, sending it in writing within 30 days of receiving a validation notice, which can be your initial communication with the debt collector.
If the debt is not collected, then the debt collector does not make money. In many cases, although you would think that debt collectors would eventually give up, they are known to be relentless. Debt collectors will push you until they get paid, and use sneaky tactics as well.
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 a creditor waits too long to take court action, the debt will become 'unenforceable' or statute barred. This means the debt still exists but the law (statute) can be used to prevent (bar) the creditor from getting a court judgment or order to recover it.
Do Debt Validation Letters really work? Yes, they do. When a debt collector receives a Debt Validation Letter, they are legally required to provide validation of the debt. Debt Validation Letter's work best when they include a cease and desist clause that forces a lawsuit.
Make sure your doors are locked - bailiffs are allowed to come in through unlocked doors. If you have a porch with a lockable door you should lock this too. Depending on the kind of debt you owe, the bailiff will sometimes have the right to force entry by asking a locksmith to open your door if you won't let them in.
Paying off the debt will likely improve your score with credit bureaus that use FICO 9 or Vantage Score 3.0 or 4.0—the newest versions of credit scoring. Debt in collections is considered under payment history, which is the biggest factor in the most common credit score, FICO.
Unpaid debt doesn't go away. Until the debt is either paid or forgiven, you still owe the money. This is true even if it's a credit card debt that is sold to a collection agency and even if you think it's unfair.
Take a deep breath and understand that accounts in collection won't plague your credit reports forever. They'll generally fall off your reports after seven years, and you may even have options for getting them removed before then.
You might not have to pay an old unsecured debt if it has been more than 6 years (or 3 years in the Northern Territory) since you last made a payment or acknowledged the debt in writing. This is called a statute barred debt.
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 is unable to obtain payment of the debt by way of the letter of demand or other contacts, they can commence proceedings in the Court to recover the debt, plus the debt collector's costs and interest on the debt, by filing a document called a 'Statement of Claim'.
No Adequate Bill of Sale or Chain of Title
In that situation adequate proof of every transfer is necessary. And when the debt has been sold more than once, the debt collector is almost never going to have what it needs to prove its right to sue you.