Use Debt Validation To Protect Yourself.
Why is this imperative? Because ironically, the majority of the time the collection agency CAN’T properly validate the debt, especially if it’s old. They have a hard time producing the proper legal documents to legitimize that you actually owe a debt Portfolio recovery associates.
Many times these scumbag ‘bottom feeders’ bought the debt from the original creditor for pennies on the dollar. Now they’re in diligent pursuit to make your life miserable, and will attempt to strangle as much money out of you as they possibly can. This isn’t even mentioning -on top of- charging exorbitant fees.
For example, a collection agency may pay $20 for an old, SoL “Statue of Limitations” $1,000 + debt, and will do anything they can to intimidate the victim into paying. Anything they receive past their initial investment of $20 is lining their pockets and making them extremely wealthy.
And don’t be surprised if the debt has magically morphed into an outrageous sum. They’re capitalizing on your old debt and adding late fees, interest, etc and then harassing and threating you to pay it off just so they can make a huge profit off of scaring you into paying.
The good news is once you actually “challenge” these collection agencies, many times they’ll suddenly (and very conveniently) disappear. They’ll sell your debt for a reduced cost of $10 to another collection agency, and then someone new will start to call and harass you.
According to The Credit Info Center, collection agencies may pay for portfolios of debt at the following rates:
Recently been charged off: 6 to 7 cents on the dollar
Accounts that are slightly older and on which a collection agency or two has already taken a whack: 1.5 cents to 2 cents on the dollar. Years-old, out-of-statute debts: A penny or less. These types of sleazy debt collectors are famously known as bottom feeders, zombie debt collectors or junk debt buyers.
These sources, “Zombie Debt is Hard to Kill” and “Return of the Living Debt” are tremendous assets to read and learn about these nasty 3rd party, scum bag collection agencies.
What to do if you’re contacted by a collection agency
If a collection agency contacts you over the telephone, politely ask for their name and contact information. Then firmly state you’d like further information about this alleged debt and you will then be in touch shortly for validation purposes. Immediately hang up the phone, without admitting anything.
At the very least, figure out what debt collection agency is contacting you, and then immediately HANG UP. Just knowing their relevant contact and mailing information is all you’ll need to take the next crucial step in fighting back.
Before validation NEVER, NEVER, ever admit guilt of a debt. MAKE THEM PROVE THE DEBT since they are accusing you of owing it, make them prove it.
Your conversation will be recorded and any slipup or naive language on your part can be used against you later if it should go to court, especially if you unknowingly use language that admits fault to an alleged debt. So stay off the phone to protect yourself. Keep all further correspondence strictly to writing.
I strongly recommend not speaking with a debt collector over the telephone under any circumstances. You are under no legal obligation to speak with a debt collector over the phone and, in fact, it’s one of the most foolish things you can do.