TriAdvantage, Other Creditors: Do I answer?

[tiffanyap2]

What is the name of your state? Florida

I now understand my rights for not making any payments to collection companies. They are calling so much that I'm at the point now where I'm going to start picking up the phone. Could I tell them to stop calling me? If yes, would it be illegal for them to continue to call?

The statue of limitations in Florida is 4 years, does this mean that it should be written off my credit report in 4 yrs or is this just the limitation to sue? I was told that it takes 7 yrs to wipe off your credit report.

 

[Ladynred]

Don't pick up the phone, let them talk to your answering machine.

Could I tell them to stop calling me? If yes, would it be illegal for them to continue to call?

Yes and Yes ! Per the FDCPA, they are not allowed to cause the phone to ring excessivily to harrass or annoy. Also per the FDCPA, if you send them a letter telling them to STOP calling you, they are supposed to stop. Calling you again after that would be a violation of the law.

So, you can send them a letter telling them to cease all PHONE CALLS and that all communication should be by MAIL ONLY. Send it certified, RRR and keep copies of everything. If they call you again after you KNOW they got your letter, keep a log - each call is a violation of the FDCPA.

The statue of limitations in Florida is 4 years, does this mean that it should be written off my credit report in 4 yrs or is this just the limitation to sue?

4 yr SOL is the time in which they have to sue you to collect.
Reporting period on your credit report is 7 years PLUS 180 days from the date it first went deliquent and led to charge-off. In general that means its 7 years from charge-off, but some companies charge-off sooner than the typical 180 days of non-payment.

 

[tiffanyap2]

Thank you

Thank you very much!!

 

[tiffanyap2]

Sample Letter to Send to Collection Agencies

Does anyone have a sample Collection Letter that I may use to write to these collection agencies to stop calling me, and to send all correspondence via mail??

Thanks in advance,

 

[Ladynred]

Lots of sample letters :

www.creditinfocenter.com

 

[jazzy13]

Original crediotrs are not bound by the fdcpa

It is important that you understand who has ownership of your account. Original creditors are NOT bound by the FDCPA. That law is applicable to third party collectons only. You did not state if you intended upon re-paying your obligation. While asserting your consumer rights, be aware that your creditors can aggressively pursue their rights to enforce your contract, and when you stop allowing phone contact to discuss or set up re-payment, without paying the account, you are inviting your creditors to take more formal lawful actions to recover their money.

 

[Ladynred]

Oh puleeeease.. there is NOTHING wrong with the US MAIL for communication and negotiating terms for repayment or settlement. The fact is that there is NOTHING to bind a CA to an agreement made in a phone conversation and most will have a very convenient case of selective amenesia about any 'arrangement' a person THOUGHT they had. Written communication provides a verifiable paper trail and once its in writing, its pretty damn hard to renege on a 'deal'. The BEST way for consumers to protect their rights and get a binding agreement is to get it in writing. If it's not in writing - it never happened. If a person makes WRITTEN offers of payment plans or settlement and sends them certified mail, then if they still get sued, they have evidence in court to show a judge that they were making an effort and not just blowing things off.

Besides, no one wants to be harangued, brow-beaten, threatened, and cussed at or screamed at by a collector on the phone. They may be 'nice' at first, but the second you say 'I can't pay what you want' , the Mr. Nice mask gets dropped and Mr. Nasty comes out with a vengeance.

 

[jazzy13]

Negtiate terms for re-payment

Bottom line. once a consumer falls into default on their contracts they are no longer in a position to dictate terms of re-payment. Most law firms will put re-payment arrangments in writing, most collection agencies will not. Simply because collection agencies typically will have the debt for a spefiied period of time before the orginal creditor will demand the contract terms be enforced and if not by them , place the account with a secondary agency, a law firm or take more formal actions. The point here is most cosumer contract state, and the consumer agreed to the terms when intially borrowing the money that upon any default the entire unpaid balnce is due immediately. So entities that are retained can legally accept and apply any partial payment to the consumers unpaid balance and continuing to lawfully collect on the entire remaining unpaid balacne that's due. Getting a collection agencie to give up that right is difficult at best. When the consumer writes their own re-payment letter, if they keep the arrangments they committed to, there's a good chance the agency will not move forward, unless the original creditor pulls the account, law firms can continue to collect and/or sue, therefore they normally will agree to a payment letter (which can be used against the consumer in court if the consumer fails to keep the terms). Consumers attempting to show they were 'trying' means nothing in court. the contract terms are black and white. Default =default. Letters provide a minimul amount of protection to a consumer, and then only if the consumer keeps the terms.

 

[Ladynred]

Folks, by his/her own words, Jazzy13 is or was a debt collector:

I have over 15 years experience in the credit and collection industry

So, consider the source when reading his/her information...............

 

[tiffanyap2]

Thanks for Information

Thanks for the information. Yes, all the payments that I am making are directly with the original creditor. The ones that I am not paying are with third party collection companies. Because of a situation I had were I paid a collection agency debt with the promise of removing the status on my credit report and not happening. I feel why should I pay off the third party collection creditors if they are going to keep my credit report status the same as if I didn't pay (with the exception of zero balance).

 

[jazzy13]

Doing the right thing

Pay because it is the right thing to do. You obligated yourself when you borrowed the money; purposefully not paying it means you took the money (with no real intent to pay it back). I truly believe most people get into trouble because of the buy now-pay later mode of thinking. Beyond that, assert your consumer rights in getting your credit report to reflect the accurate status of your accounts. You can have your credit report updated to paid and the zero balance is the best that it gets once you allow an account to go into default. Some will say it doesnt matter, or that it doesnt improve your score or even that is a negative mark. Dont be fooled. Potential creditors almost always look at your debt to income ratio in determining creditwothiness, its an indicator of your potential ability to repay a note. The most derrogatory status (excluding judgments/bankruptcies and other negative public records) is an UNPAID COLLECTION ACCOUNT; and how long it remains unpaid. It does matter. That's one reason people who file bankruptcy qualify for credit again, because their debt is gone,freeing their income; however they get stuck with 20+% interest for several years due to their previous hsitory of unpaid accounts. the only way to truly improve your situation is to take individual responsiblity regarding the decisions you make. Hold yourself accountable first, others second and youll be glad you did. Logically, I think you know what is the right thing to do. You can always find someone who is willing to tell you otherwise, but remember, they will not pay the price--you will.

 

[Aegis]

[Opinion]

I agree except for one exclusion:

Once the debt is sold to a third-party, I see no obligation to pay them (other than legal). I entered no agreement with the third-party (and half the time you don't know who they are or which debt they are harassing you about).

My obligation is to the original creditor. If I default and they write that off, I'm morally [NOT LEGALLY] absolved of that debt. They get the write-off, plus whatever the third-party pays them for the debt. The third-party is just a gambler hoping they can get more than the $2000 they paid for a $4000 debt while trying to raise it to $6000 to scare you into payment. They roll the dice... They know the risk...

As to the comment about purposefully not repaying the obligation: I'm sure there are some that do that [and such fraud should be actively pursued], but a great many are given credit without any education regarding credit (i.e. college students). The decision not to repay was made AFTER reality [schoole of 'hard knocks' education] set in, not during the application and approval process. While I recognize the creditors' pain, they are also, again, in my opinion, just as responsible for taking advantage of the naiveness of these kids.

That's not to say these kids should just give up on their debt payments, but I can't see placing SOLE responsibility on their shoulders.

[End opinion]

 

[Ladynred]

Credit education should be mandatory in all high schools. I was reading recently that there is only ONE high school in the entire nation where personal finance is a required course - that's pathetic.

Anyway...

Creditors look, and lend , on FICO scores. FICO rules the day and, unfortunately, our lives when it comes to credit. Debt to income, utilization vs. available credit - ALL figures into the FICO score and thats about ALL they care about !

As for paying a collection to improve your FICO scores - sorry -- ain't happening. Its not MY word, read the following article, even the guy who is the head honcho at Fair Isaac says paying off a bad debt will HURT your scores, NOT help !!!

http://moneycentral.msn.com/content/SavingandDebt/P59862.asp

 

[jazzy13]

obligations

When consumers sign most credit card agreements, they are obligating themselves (legally, morally , and ethically) to pay as agreed. Which is to say the minimum monthly payment due on or before the due date. Failure to do this and then complaining about ending up in collections is riduculous. Consumers obligate ( or over-obligate themselves) to the terms and conditions of the original agreement which usually states that the original creditor has the right to remedy any defualt by selling or assigning the accounbt to a third party. If conusmers do not want to accept those terms, they should not use the credit line extended under those terms. To borrow money under certain term, and then balk when the terms are enforced is irresponsible. Credit reporting agencies will confirm theat unpaid deliquent accounts are the most derrogatory information excluding negative public records. Good luck!