Read terms and conditions on your statement. Every time. If someone tells you something if you don't believe, chances are it's in fine print, which IS NOT illegal. It's just common sense. Like he said , debt is not less valid because you didn't know about the terms you signed up for
@@freddygonzalez1955 yrs ago like 20 yrs ago I had a Discover card I didn't pay because I lost my job laid off. The debt was over $6000.00 and they sent to collections and threatening phone calls but they did not take me to court. It came of my credit 7 yrs and 2 months.
If your a year behind try to pay it and make a deal they will remove the negative Mark's on credit report, get in writing. If it's been 4 years or so just wait for it to come off in 7 yrs. Just don't make the mistake again. Learn from our mistakes.
I worked with this guy years ago to settle my debts and he was beyond awesome. He would often push me to handle accounts myself if I could, and I had to practically chase him to accept payment when he did intervene, and he’s super generous with his advice and consults. Just like in this video he’s no-nonsense, and mostly doesn’t entertain the gymnastics other advisors on RUclips peddle. For example, I’ve seen several videos of people advising that you dispute Midland Credit and ask for evidence. While I’m sure that’s worked for some Michael is the only person I’ve seen post a case study where that has totally backfired.
One thing I think he was incorrect on was the debt validation issue. The majority of collection agencies do not have the proper documentation to verify the debt and it is up to them to validate it once you request it. This must be done at first notification to you that they are attempting to collect, usually within 30 days. I believe the FCRA requires the collection agency to provide you with a copy of the original contract, the date of your last payment, the date it went into default and the amount due at the time of default (to avoid them from slapping additional interest or fees). Some have the proper information but many do not. Many just have a spreadsheet printout of the debts they purchased in bulk and if they are unable to validate the debt, you are not obligated to honor it and can dispute it on your credit report.
They do not have to provide the original contract. The threshold for validation is low enough to trip over. They do not have to answer you in 30 days. You are referring to debt that is sold, but the vast majority of debt today is not sold. It gets sent to different collection agencies to be sure, but the credit card bank retains ownership. Recent OCC guidance (2 years ago) to banks selling debt is to pass on the media needed for the purchaser to prove their claims.
Yes I was referring to debt that was sold. I wasn't sure about a copy of the original contract, but I do recall that they must name the original creditor if it had been sold multiple times, and the date the last payment was made which would show the default date and the amount at that time. They do not have to answer within 30 days, but I believe you must dispute the debt or ask for debt validation during that period of time which is what I meant. Otherwise they simply state that a notice was mailed to the last known address of the debtor and no response was made so they claim they met the legal requirements.
I had a debt collector take me to court. I won the case because there was no contract binding me to the collector. So I did not have to pay collections. I've never paid collections and my debts are no longer on my record.
Hello Brother, Did you go to court by yourself or some legal firm represented you.. I'm going through similar situation but I'm from Toronto, Canada.. Any advice pls.
@@ram0210 a lawyer. Not sure how Canada works. Check the original contract first. Also if you don't owe to much just pay it but get a written statement from collections first saying it will be deleted from your credit report. But I would talk to a lawyer first and get the best advise you can. Love Canada by the way. Spent about a week in Calgary, for the Calgary stampede
You got lucky bro. That debt collector dropped the ball, and is definitely an anomaly. Most of the better (or worse) collectors are not that careless. People like Calvary Portfolio or a few others will have all the media, contracts, etc, in order to successfully sue you. If you ignore debt, or not pay it, you're rolling the dice. Sometimes you can get lucky and get out of the mess scott free, but other times, they wills screw you to the bone.
I've gotten more calls from fake "legit" debt collectors on things I've never had. Car payments and credit cards. Never even owned any of those. I always ignore these calls and I don't see how it will be any different if I ever do take out a real loan. How can this guy sit here and tell us these collectors are real and will hunt us down? They don't care about what we do or have time for that. This guy sounds like a spokes person for the debt collectors
Most people dealing with legitimate collections are looking for solutions to the problem. These videos are focused on helping people trying to resolve real debts. You mentioned fake collection scams, which are , unfortunately, a real concern. Here is a video covering the topic: ruclips.net/video/8Et7HlitGF4/видео.html I also have an article about that here: consumerrecoverynetwork.com/question/debt-collection-scams-fakes/
It's not uncommon to contact a person with a matching name, normally a few verification questions related to an account will let the collector know if he/she is actually speaking to the right person. In some cases, a collector can assist you in exposing fraudulent activity in relation to an account and at least point you in the right direction to help you.
+Sarah Divinetrix Jumping on MB's points, that's exactly the truth. As I posted in another reply, just because that's true for you doesn't mean that's true for others. I had collectors contacting my ex wife, my job, old roommates, and they were all for legitimate debts that I owed years ago. It gets old hearing from people like you who have these "Specific" experiences with collectors, and that you feel like that's the truth for everyone. Even in the collections industry, they can reach farther than others in their own field. Which means you may have a debt sold to a smaller company who doesn't necessarily have the resources to "skip trace" and find you, yet another debt is sold to a company who does have those resources, and you find that they are hunting you down like a wild animal hunter. It all depends on the situation. It's not a one size fits all, and all debts are sold to one collection agency that behaves in the exact same manner. Even with the FDCPA act laws, some collectors still harass and threaten. If the advice Michael gives doesn't fit your situation, it doesn't mean it doesn't help thousands of others who are in collection situations different from yours.
You're generally right but what he's telling you is as somewhat of the truth but he's holding back a little bit it's like throwing a ball but holding back a little bit it's the oldest f****** trick in the book
The thing is the person you had the debt with sold it to a collector pennies on the dollar. So you had a contract with that company, not the debt collector.
Exactly, listen to this wizards magic words when discussing this: 'they sold your debt but that doesn't make it less valid'. Yes, the debt may still be 'valid', but that doesn't mean that you have to pay the debt purchaser as you have no contract with them.
No, you don't have to pay. They are not forcing you to pay ..but again, it's still YOUR debt. You owe it. Don't pay it? Want to cuss your collector who's just doing their job.?? Well in 6 months when it's on your credit report....well, your problem. Don't call the company who tried for months to collect and yell we reported negative remarks. Don't give a shit about your credit? Well, try and buy ANYTHING on credit again once you have a charge off...good luck!
And no...it's not pennies on the dollar. Idk why ppl say this...it's the dumbest shit I've ever heard. Actually late fee equal to $27-$38 per late fee, and no, even if you pay a day late, we could give a shit less your a good customer all year, there will be a late fee....we won't remove EVERY LATE FEE because your entitled ass thinks you deserve it. If you do, then ask nicely, if we can't, then take it and move on. So there will be late fees and interest which can be higher than that, adding up each month...THATS what collections gets, and we add fees and interest until it charges off and is an uncollectable debt...we don't add money, or get a 'quota' for getting so much money a day. Pay your bills and this fight won't be a big deal. I've been a collector for over 5 years, and I'm good at my job. I'm not a scammer, I could give a damn less if you pay it not...but SOMEWHERE out in the world there are ppl who actually appreciate we call when they are late. No, no we do not sell your account pennies on the dollar...it's the same you owe when we get it as when it left the original office.
@@madilynandujar163 you actually can, but they can take up to 6 months to get all the accts straight Meanwhile it's showing your past due until almost charge off date at 180 days. So they won't be able to remove that, and if they can during that six months the damage is done to your credit. Most bureaus won't remove a negative temark because you consolidated. You can start a PMT plan even when your not past due.I think those companies are scams to make money off you. They take 15% on top of all your "consolidated debt" when honestly most of your credit companies can do these plans and settlements for free to help you. Instead of paying someone else to get you the same thing.
Are you saying that in reference to the SOL to sue resets the SOL like I mention, or that paying a 3 year old debt gives it 7 new years of credit reporting some how? It does not. A paid tax lien would do that. Most any other debt would not.
You're spreading misleading information. The date of first delinquency is hard set in stone. No one can reset it. Paying a tax lien is the only thing that will reset the date. FCRA act specifically states that it is 7years from date of first delinquency, not last activity on debt. Ive no idea where you people get that from.
Gwen Davis every company has an expense account for bad debt; they can record it when it happens or do an estimate monthly (ex. 5% of total debt is deemed uncollectable.) Most company do the estimate and write off that entire amount each year, doesn't matter if they have "uncollected debt" to apply. If they do collect that amount the following year, then they do an adjustment to their books the following year to pay for the taxes for the amount they collected.
Exactly! Once written off, it's gone! The non-payment will remain on your credit report but that only comes into play if you try to get a loan to buy a house - with a low annual income. If you have a good job now (consider yourself lucky due to this virus thing), that is more important to a bank than something you didn't pay several years ago. WE bailed out all of these banks in 2008.. so literally, they owe US.
Actually, we can use disability and other forms of voluntary payment from any sort of check. We cannot legally collect from that source of income, but we can take you to court and propose a certain amount each month, called garnishment....and if not a collectable source of income, then it charges off, you have bad remarks on your credit card and they won't approve you for a loan ever again.
Nancy Davieau yup ., I had a lawyer that recommended chapter 7 over 16k and my annual income is like 60k and I only had 3 balances 🤦♂️then I asked . If I do go with it am I good to do anymore spending ., she it the debt doesn’t matter because it gets wiped . But I did my research and realized that I would have been screwed trying to take that to court and ask for a chap 7 when I racked 7 k in 3 months of working with the lawyer 😫
@@djcandyman661 was their comment directed at you? So why are you picking on people for no reason? If you are curious about something just ASK like a normal human being instead of calling people "keyboard" warriors. I mean what are you 12?
"NO CONTACT, CONTRACT WAS CANCELLED." That is all you have to post on every credit reporting bureau! (In regards to collection accounts)(state of Texas)
If you get a call and then reply with, I don’t have a contract with you, then you might not have read the contract from the OG creditor where you agreed that if lapsed and/or unpaid you would be sent to collections. Not only that, but the OG creditor is still actively involved in retrieving their money from you. Which means you will be provided with the OG contract you signed with highlighted fine print mailed from the collection agency. Stay on the phone. Prove your point. Get to the bottom of it. Hanging up does nothing.
That doesn't erase the debt, all it does is push it off the. Eventually it will come back , because you opened an account you had a contract, dont matter if it was signed physically most places now dont do physical signature contracts, they have you sign electronically etc. This is just a cheat tactic to try and avoid debts and it doesn't work when you actually did have a open account with a company
I NEVER paid the collector, I actually went back to the ORIGINAL creditor, paid them directly, and then disputed the collection acct on my credit reports as paid to original creditor. I provided proof of payment made out to the original creditor and ALL of the collections were taken off. I had three accounts that were like this and ALL three were removed. So, nah, you're not right. People need to check statutes for their states and know the laws for their states.
Were these medical debts or something other than bank loans or credit cards? I highly recommend what you did when dealing with medical debts that were sent to debt collectors.
And it is legal to pay the original lender no matter what because they are who you took out the loan or credit card with. Your info is still in their system, which includes the amount owed.
I couldn't agree with you more! I studied the statutes of my state and compared to what he's talking about, he's leaving out a whole bunch of fact! Plus, he's only talking like the whole subject matter revolves around credit cards when there's all kinds of debt!
Serendipitous One i have an active collection account and the original creditor is T-Mobile. I am getting calls from a collection agency to setlle the debt. what would be the course of action?
I'm not going to get into the whys of my reasons for refusing to pay two creditors, but neither are on my credit report and they both stopped calling me. I explained to the first two or three callers why I refused to pay it, then said "listen carefully. I won't even pay this when Christ returns! " Worked both times
In both cases I refused to pay the bills because of the actions of the creditors. The first one was the Canadian Imperial Bank of Commerce who my ex husband worked for as a bank manager. When I left him, he forged my RRSP's (K 14's I believe they're called in the US) He then deposited them into our joint account he told me he'd closed, then withdrew the money (over $8000) When I found out the bank told me that it was between me and my husband. NO! Their employee commited fraud and they didn't do anything about it. I ended up having to open another account with them so he could pay child support. Ten years after, he decided he wasn't going to pay anymore, which left an unpaid $500 overdraft. I refused to pay, telling them I wished I owed more. Second one was a legal aid lawyer I was using during my second divorce. He wanted me to settle for $450,000 less than I was entitled to from the business my ex husband and I owned, and I refused to. We were going to trial in a few days, and he told me he wouldn't be my lawyer if I didn't settle. I said fine. The day of the trial, he called up my ex's lawyer and gave her false information which the judge believed. I haven't heard from either of these creditors again, and it's been over five years, nor is it on my credit score
I already have a mortgage, buy all my cars with cash, and I have a bogus medical bill that will probably go to collections. Screw my credit score, fight me!
Many years ago, I moved to another state. Almost immediately, I got calls from collectors. Even after I explained that I was not the person they were looking for, they persisted. It culminated in my being served by a deputy sheriff. Fortunately, I knew a man that was a partner in a large established law firm. He sued them for $800, and I never heard another thing.
My wife had an account with company, the state allows drop off credit after 7 years, so on the end of the sixth year, the company made claim my wife made a payment of one dollar, and that allowed them to renew the debt on her credit report. So this means they can keep it on her credit forever by just saying she made a one dollar payment every six years and eleven months.
Adding any new amount of time to credit reporting is a violation of federal laws that limit how long negative items can appear on your credit. There are limited exceptions, such as a tax liens. What was this debt about? You mentioned the state.
when it is charged off by original creditor..there is no contract .the filed taxes for the yr it was charged off.therefore it is a violation of the f.d.c.p.a.
Charge off is an account function. Debts are collectable after a charge off. Trying to collect on a debt after charge off is normal and not a violation. Here is more about credit card charge offs: consumerrecoverynetwork.com/charge-off-and-credit-card-debt-what-it-means-to-you/
@@djmoreno1100 this is what they all do. Any financial assets are insured by the bank issued. So it it 2X dipping. And see how its all credit that was supplied by your signature means u dont owe anyone anyways. Just because its an accepted practice doesnt means that its legal.
@@aredubbz bullshit. Banks take a risk of loss when they lend money. Even if they have insurance for a bad debt, the insurance company will then have the right to come after you for the debt. They will sue you in the bank's name to do it. Same thing if you are at fault in an auto accident, and the other driver's insurance covers it. They can come after you to recover what they paid. It is called subrogation. There is no double dipping.
Untrue, charged off and being sold are separate things. He clearly explained this, you had a contract with the original company and even I'd it was sold that doesn't change the fact it's your debt. Like it or not its gonna end up hitting your credit and rightfully so if you decide you won't pay your bill . It's so simple. If you domt want to pay the bill you don't open the account. .. his us that hard to get? And again that statement is false, collections is not the same as debt buyers which again he clearly explains in the video
Believe this guy. He is either an Attorney or a veteran collector. I would recommend this company to resolve collection issues based on Mr. Bovee. He is giving a free consultation and he knows his biz!
@@scottchristianson7599 i settled it before it got sold so there is no collection it shows up settled for less charge-off. as for as the charge-off im under the expression 6 years and 10 more months from now it falls off. because it's 7 years from charge off. i hope i worded it correctly.
I don’t know about the US but in the UK, if you don’t pay your debts, you could end up with a county court judgement or even an attachment of earnings. It’s in your best interests to pay off your debts.
+Adam links, yes they in fact do. I know that for a fact because I have a debt collector who asked me a few detailed questions about items on my report. The contract they purchase from your original creditor gives them every right to pull your credit report on demand. Nothing you can do about it. You should do some due diligence before you accuse experts of lying.
An attempt to collect a debt is permissible purpose for a debt collector to access your credit report. Debt Collectors indeed have access to credit reports, legally. How do you think they find your new phone number magically after an inquiry?
As consumers become more educated over time many are more than willing to schedule payments with debt collectors based on the fact that they have the power to remove them from your report when the debt is satisfied and can update them as needed. So they absolutely have access to your report.
Let me tell you something I got out of all of my hospital bills and credit card debts by no Contracting and disputing them off. I have not heard a word in over a year-and-a-half now from any of them on the matter do you know why that is because they're absolutely bogus contract that you're duped into believing are real
Personal experience: Years ago I had an old balance on a major department store for $480.00. It was 6 tears old. I wanted to clear my credit so I asked them if, I paid now, would they cancel the report on my credit report. They said no. I said OK, I will let just let it drop out of the report by itself next year. And it did. I think this is extremely stupid on the creditors' part.
Or you could save a bunch of time and headache and file for bankruptcy. A few months later you will start to get credit card offers in the mail, and after a few years, you can qualify for a mortgage. Sure, your credit score takes a hit but if you are currently in collections, your credit is mostly likely toast anyway. Fresh start!!
Simple, answer the calls, and do not confirm data protection bs. Let them take you to court. Request proof of contract. Then move onto discovery, then move onto discussion of debt. All moves cost them money. They can’t add additional costs once proceedings are in motion. If it is a low amount debt and you want to take it through to motions, they will back off.
A debt collector does not have to validate a debt until asked. If that’s true that’s an INSANITY could you Imagine if you went out to eat and someone says this is what you owe without a breakdown of the bill at the end of the meal and just says “ well you didn’t ask for one” what a joke
Sure, but I wouldn't pay an "outside" debt collector. If I owe, I will pay, but ONLY to who I owe. Period. These collector leeches aren't worth the time of day. They try to convince you you can't, but you can.
The FDCPA was enacted for a reason, and as of 2019 still exist. There is a reason for that. Every debt collector has a plan until they get hit (with the law).
I do like Mr. Bovee’s videos a lot, but I think he leaves out in this video an important question. If you have a 6 year old collection and you pay it, it won’t extend the reporting period but it will hurt your credit for the remainder of the reporting period, because the last activity on the account is more recent, and newer negative information carries more weight than older negative information. If you see this comment Mr. Bovee, I would love to see your response.
I too have seen someone's credit score drop temporarily when resolving a really old debt (though it is common for the score to increase quickly), but regularly still help and suggest it for people needing to qualify for a mortgage, or reach other goals. If it were me with an unpaid collection that is passed the SOL to sue in my state, and I am not trying to buy a home, or other major financing goal, I am likely letting accounts age off my credit unresolved. More so if it is only a year out from dropping.
I'm currently in debt for £400 for energy bills (they added over £100 in late payment fees). So a debt collection agency bought my debt off Scottish Power and I've not been answering their calls (calling me several times per day). My question is, on what grounds do I owe these people money? I never signed or agreed anything with them, never even spoke to them.
Never, never, never ask for debt validation from a debt buyer like Portfolio. It puts a target target on your back and they will eventually sue you. Best to avoid them and challenge them with the credit bureaus with factual errors on your report.
That’s not always true. It can depend on how much you owe the original creditor. If they purchased this debt for Pennie’s on the dollar and the debt is less then $1,500 more then likely they will not even bother to go after you because it cost them more to do that. They literally have to prove everything in court with the debt. I’ve been sued by a collection company and won easily against them..
My delinquent account is marked on my credit as a "charge off", meaning they're writing them off as a loss. If another 3rd party buys it up and tries to make me pay by intimidating me, that's their problem. Sorry about your luck boys. You bought the wrong account.
A charge-off will damage your credit rating. I was listening to this on a different Channel and one of my bank Representatives talk to me about that. Don't think a charge-off is a loss on there and it's also a loss on your end especially if companies want to see your credit report before hiring you. I'm also told that you have to pay the tax on the money they charged off because the IRS considers that income. Verify that please because I'm guessing based on what I was told by bankers who talked way too fast and have loaned out way too much money to way too many people.
I used to be horrible at paying my bills. Always played the game of letting it go collections & then try to get out of it & Dispute it etc. It's dumb. You need to just pay it. Pay it immediately, as soon as you get a letter. Call the creditor or collection agency immediately & pay it right away, before it reports.
Me, too; this happened to me after the insurance company I worked for was taken over and I was let go. I had trouble paying my bills, I used to get collection calls, and I can tell you, this is not one bit pleasant. I got a windfall after my father had passed on, and I was able to settle these debts for less than what they were worth.
Cheryl Keil ye, I know. There was this small loan that I owed about $800 on. Called the creditor and was ready to pay the full amount, but it was too late. They already sent it to collections. I contacted the collection agency and was able to settle for about $400. $400 was less than the amount I borrowed. So, I actually made money.
Thanks for the info. I have a very small debt ($125) from a couple years ago that has since gone to multiple collection agencies. The latest one says I now owe $475. Those are just fees added by other agencies! Do I have to pay those fees? Should I send one of the form letters we see online asking for proof, etc., and offer a small percentage? In their letter they offered my 60% off that amount. Thanks for any help!
@Sherry Gustafson I tried that once, when I wasn't even aware something had been sent to collections. They said they weren't allowed to accept it, because the debt was sold, and owed to the collection agency.
That's not true, because I payed a debt collector $300 from a debt I owed back from a year ago, guess what? That negative mark did not go any where. So, it did not get me on the right track at all. It was from a slimy credit card company when I was young and didn't know much about credit cards and did not read reviews before applying. I just wanted them to stop calling me and harassing me all day.
Hello sir, I have a question... I have two debts both phone carrier debts, at&t and sprint. Both are over 4 years old and a company called ERC has both of my debts. The AT&T debt is $325 and the Sprint debt is $225, I received a letter in in the mail asking me to pay the debt for "sprint" and they're willing to even reduce my current balance of 225$. I definitely would like to pay this off ASAP any tips you can give me once I pay it off what normally happens? I just want to make sure they erased this for good because it's killing my credit
They generally are not going to drop it from your credit reports, but update it to show paid, which will still allow for improvements to your credit and options for financing.
It's always going to negatively impact your credit. You're better off investing the money you would spend on paying it off, in a loan, or other forms of credit building which will positively impact your credit. I went from 590 to 712 only with secured cards, self lender loans, eventually normal cards, focusing on low utilization, all while having 3 hits on my credit, ATT for 600$, Comcast for 300 something and a 60$ from some random company. Round 1k in debt. Yet I was able to get into 700s despite not paying them. Two of them write off next year in June and while I focus on building credit further in the meantime, I'll only be better off in June of next year all without blowing 1k on some random debt company on behalf of original debtors.
I just paid $934.00 After receiving a letter saying I'm being sued! I had a docket # from superior court & I called the court they had my info & said send them a money order with a letter take a picture etc. I did all that! Sent it over to the Law office that I got the letter from which had 3 pages & Said I signed to agreement to have my Kohls card. I dont know if I feel stupid or I should've done that because it was through court. 😔
Hello Michael, You have great information. Thank you for sharing your knowledge. I have a situation with a student loan I have from 2006-07. The loan was given to the IRS to handle & they have been garnishing my income tax since 2010. They harass me saying I haven't paid them when they are taking my income tax each year. The interest is always like a thousand per year. The initial amount was for $5000. But it will never go down past $1200. I am tired of them garnishing my income tax each year. How can I deal with this. I feel like I am being robbed each time.
Yup. More like a lottery ticket that costs the same as a sports car or more. For every one "success" story I've heard with student loans, I've heard 5+ of people drowning in debt with jobs barely able to pay the payments. Sad. I'm glad I never got hooked into that bullshit.
Not a myth. I disputed after my debt was purchased and it was removed from my credit. I didn't owe that company and penny, never did business with them. I also never acknowledged a debt with that collection agency because I didn't have one with them.
And there is GDPR protection which means that you have all the rights to get your data deleted. P.S. I’ve got my debts written off in UK and it really worked…
Yeah. I've been in situations where they called me asking to verify who I am by giving them my name without even telling me who I'm talking to. If the first thing they're going to say is Hello, is this ____ ___________? I'm immediately going to be suspicious and ask questions like, "who is this"? and "how did you get this number"? Not a very professional way to start a conversation, especially if they won't talk to you if you don't verify your DOB and soc number over the phone. They'll call from call centers in Texas or Tennessee but have an instate area code. Sorry, but they just come off as scam artists. I don't give nor should anybody give their personal info like that over the phone.
You should always pay debt that you owe. If you can't afford something due to lack of income, don't get in debt to purchase it. If you loose your job and can't pay, then get another job and pay! Always pay your debts. It's the best way to keep an outstanding credit rating/number/score.
I'm still getting collection letters from a collection agency in CA from rental apartments that I never lived in, stupid me offered my credit to help someone I trusted. Long story short... this person left the apartment after 3 month and never paid rent. This happened in January 2011 and almost 10 years later and I still get the collection letters. I never paid the them or settle any type of paymen
Unless the collection went to court years back, this would be zombie debt that cannot really impact you. More on that in this video: ruclips.net/video/AehXi8m3IT4/видео.html
Do you know a chapter 7 is only supposed to be on credit report for 7 years? They bumped it up to 10 years now😢 if you already had your bankruptcy, then you should get grandfathered in for the 7 years you know? They could just change it on you like that ?
Well, banks can also sell your debt rather it's good or bad. Selling debt is selling debt. You'll just continue to pay that institution into your account. It doesn't change the terms of your account.
A debt collector is asking me to pay a $1200 debt generated from an apartment complex 2 years ago. I called them and tried to settle for $600. The would not budge or settle. It is the only only debt I have at 47 years old. My credit score is climbing quickly and paying this will help, but why wont they settle for less. Any insight would greatly be appreciated.
I would not expect to settle with one phone call. It can take many, and it is not all that unusual to hear no on the first few calls. There are debts that will not settle for less some times, but you can usually get a slight reduction of 20% without too much hassle.
Thank you very much for this video sir. I really appreciate it. On a completely side note, I don't know if you are a fan of the TV show Whose Line Is It Anyway? But it is awesome and everyone on this is awesome and if you take Ryan Stiles and Colin Mochrie and morphed them together it would look exactly like you. That is a compliment sir. You have a very friendly and non-intimidating face.
I’ve already been served by a collection attorney. I called his office. So far they’ve offered to settle for about $550 less than they’re seeking in the lawsuit. I think I can probably get them down more. My biggest concern is if I pay them a lump sum for a final settle that it will really end there. I’m worried they will continue to go after me or proceed with the lawsuit. Should I be so worried about paying them?
You would want to get the settlement in writing before you pay. Attorneys in the middle of litigating a case are typically just as eager to get things in writing as you are.
No argument that debt collectors would like it if no one shows up, and that the whole legal collection framework relies heavily on getting default judgments. That is more than accurate. But what about what I say in the video is misinformation? Debt collection in the courts evolves. The OCC now requires banks to sell their debt with the required media to back up their claims. Some states require the foundational documents to support a claim be in your possession prior to filing. It is harder to win, or get cases dismissed on documentation alone, than it was 10 years ago.
#3 Debt Validation -- You have a different definition of debt validation than I do. Yes, the debt is considered valid if there was a line of credit behind it. However, there's also the consideration of whether an individual charge itself is valid. I've had times where creditors have tacked on additional surcharges for monthly services. Unless the original creditor can validate that the remaining balance indeed comprises valid charges for services rendered, then the debt is actually invalid. If the original creditor cannot provide documentation for specific charges (i.e., itemizing the charges to specific services rendered), then the debt should not be paid. As an example, I attempted to have AT&T send me documentation 3 times regarding a charge sent to a debt collector. None of those three attempts could AT&T pull up the charge in their computer system and provide documentation of services rendered that links to those specific charges. In fact, I couldn't even find a bill sent to me by AT&T that had that specific dollar amount collected. Because AT&T couldn't provide such documentation (a bill or similar) stating what the charges link to, I told both AT&T and its collector to go take a hike.
Question : There are a lot of telephone scamming going on lately. How do I tell if it's a legitimate phone call from a collection agency or three people in a living room with laptops scamming people out of money online.?
If you have a legitimate debt and are worried if a collection agency contacting you is legit, you can call the creditor and ask who they placed, or sold your account to.
Call the number on the back of your card and ask for info on last call. It should always give a time even if you hung up. And they can give you info about you only your collector would know such as last purchase and amount. The St name you live on, year you were both, things like that. What bank you have on file if you have one, but only after you verify a few things because we legally cannot give out your personal info
Why would I be contacted by a collection agency, not pay the entirety of my debt BUT the collections never hit my credit report? I am living in fear that someday it will. How can I know if it will or won’t?
Can you tell me who you stopped paying and when? And does that creditor still show a balance as owed to them on your credit reports? In many situations, the creditor is still reporting an unpaid collection owed to them, and each collection agency they send it to will not show an additional collection item. Other times, the creditor may sell the account and the new owner of the debt will show collection item owed to them.
You forgot to mention that if a debt collector can't collect, they re sell it to another collector, who tries and the clock starts again. If they fail, they re sell to yet another and AGAIN the clock resets. I have 2 outstanding collections, the ORIGINAL date was from 2005 (cell phone due to cancellation) and my credit report keeps showing "Placed for collection" LONG after the original default. (The totals are less than $300 total, but I kept disputing the fees because the contract was long since satisfied and they tried to charge cancellation fees). This should have dropped off LONG ago, but because they keep getting re sold, the clock keeps getting reset.
I have a $7,000 Debt orginal creditor to my college in collections. It was almost 2 years old and I just noticed the company changed and the Original date was changed as well. However I am in CT & It was not as old as the comment above. In this situation, should I pursue them for resetting the debt?
Can you be more specific with the details? Often times debts become part of an estate. There are many times the debt can just cease with a persons passing.
Contacting the original creditor to find out who the debt is with would only work if it wasnt sold off to another Collections company a lot of times it can get sold off many times after the first Collection bought it.
This all makes sense for money that you've physically spent, such as a credit card. What about medical debt where you don't even have a dollar amount for your services until weeks or months later?
I have been trying to find answers to the same question. I had a baby in January, which more than doubled our debt, which *was* down to only my husband's student loans.
Credit, money, debts. All of these things only have value if people give them value. Chains of the rat race. We are all fleeting sparks of energy, credit, money, debt completely meaningless to those who see the big picture of a fleeting existence. If the vultures start circling, block, ignore and move on with your life. The problem is theirs, not yours.
I'm confused. They can sue you and garnish your wages without you even knowing that you were sued? I am not understanding the court process. How can I miss a court date if I didn't know it existed? That's unfair and seemingly illegal. So - I can sue someone not send them anything in the mail or at least certified mail and if they don't respond to my letter - then the court rules in my favor stating that they indeed owe the debt?
That is what has often been referred to as "sewer service" and is wrong. It is still a very real problem today. If that has happened to you I would talk with an experienced debt collection defense attorney in your state. I would also think about filing complaints against the plaintiff and the collection law firm with the CFPB. I would also look to file state bar complaints against the attorneys involved in your court filing.
Can you be more specific about the situation and details? Who is involved? How old is the bill? Were you on the account in any way? What state are you in?
Okay. Debts that are more than 4 years unpaid are passed the SOL to sue in California. That does not mean they cannot try to collect by calling and writing, but you can put a stop to that too. These debts sound like they are too old to show on her credit reports too. Check out this video on zombie debt, as that is what you appear to be dealing with: ruclips.net/video/AehXi8m3IT4/видео.html
I got a call from "global radius solutions". They asked if I was who they were trying to reach and I confirmed I was. They then asked for my address and social security which I refused. I asked in what regards this is for because I do have unsettled debts but they refuse to tell me until I give them my info and on top of that the number is a local number in my city.
They should send an initial collection notice within 5 days of that call, and that letter should give details about the debt. The local number thing is spoofing and trick they use, like telemarketers now do too, to get you to pick up.
Why must anyone pay off a debt that has been repaid to the original Creditor as a "write-off" against their taxes? They receive the ability to deduct the full amount as a bad debt which reduces their taxable income. Then the law permits that Creditor to sell the debt account, admittedly for a smaller amount, to a Collection Agency. This obviously benefits both Creditor and Agency, but not the Consumer. This system is hopelessly rigged against the Consumer. Why should we not demand a repeal of this double-dipping? Having the write-off on the Consumer's credit history for years is bad enough punishment. The added Collection Agency part seems very much like "cruel and unusual" punishment. Repeal this, Congress. Now.
If you let a rental company run a credit check on you because you are helping a friend get an apartment; however, you did not sign a lease or rental agreement, can the rental company sue you if the person bails on the apartment owing rent and damages?
I suppose they could try, but if they did I would get with an experienced debt collection consumer law attorney in your area real quick and see how they can help you not just defend, but bring an action against the collectors involved.
And don't forget, they have 5 yrs to put you in court. After about 7 yrs. All that crap will be removed off your credit reports, which will raise you credit ratings. In my case unbelievable high medical costs, which I refuse to pay. But keep the rest of your credit up dated, and you will be a HERO. Return any Certified Mail, that you are not expecting!
You'll probably find that it's in the terms of your agreement, that any arrears can be sold to and collected by a third party. Check your terms. And take proper legal advice. RUclips is not proper legal advice.
You can call the original creditor to verify that. You can see if the original creditor is showing a zero balance owed on your credit reports, even though it was not paid. This will often mean a new company is reporting the amount owed to them, though not always, as some debt buyers do not credit report. There are holes with relying on credit reporting when it comes to medical, utility, and other bills that are generally not reported by the service provider. It may be the collection agency reporting at all on these types of accounts. When it comes to credit cards and personal loans, calling and checking your credit is a pretty reliable way to check. You can also look for how the original creditor, and current owner, are often shown on the collection notices.
Michael, the link about statues of limitations by state is very helpful. I was worried about talking in the phone but feel better now. Are bills like old accounts with Verizon are typically the same as credit cards with regards to SOL?
I come straight for the comments by the experts
lextacy2008 lol
There's too many conflicting videos. Idk what to believe
I agree 100%
Read terms and conditions on your statement. Every time. If someone tells you something if you don't believe, chances are it's in fine print, which IS NOT illegal. It's just common sense. Like he said , debt is not less valid because you didn't know about the terms you signed up for
@@freddygonzalez1955 yrs ago like 20 yrs ago I had a Discover card I didn't pay because I lost my job laid off. The debt was over $6000.00 and they sent to collections and threatening phone calls but they did not take me to court. It came of my credit 7 yrs and 2 months.
If your a year behind try to pay it and make a deal they will remove the negative Mark's on credit report, get in writing. If it's been 4 years or so just wait for it to come off in 7 yrs. Just don't make the mistake again. Learn from our mistakes.
Dont pay , dont ever answer the phone
Show me the contract and I'll pay the debt.
Then why haven't you? You should have paid it before it went to collection.
So you like to be financially irresponsible.
And they will and then you will never read it and won't pay anyway because you don't like paying your bills you moocher.
I don’t know where you get your information from, but I’ve beaten 2 collection agencies in court by following the advice that you try to debunk.
He is a collector agent... like on their side when it comes to mindset...
They don’t sell debt the other people just buy the debt 😉🔫 ok debt buyers .. agree w u John
How? Pls share
I worked with this guy years ago to settle my debts and he was beyond awesome. He would often push me to handle accounts myself if I could, and I had to practically chase him to accept payment when he did intervene, and he’s super generous with his advice and consults.
Just like in this video he’s no-nonsense, and mostly doesn’t entertain the gymnastics other advisors on RUclips peddle. For example, I’ve seen several videos of people advising that you dispute Midland Credit and ask for evidence. While I’m sure that’s worked for some Michael is the only person I’ve seen post a case study where that has totally backfired.
One thing I think he was incorrect on was the debt validation issue. The majority of collection agencies do not have the proper documentation to verify the debt and it is up to them to validate it once you request it. This must be done at first notification to you that they are attempting to collect, usually within 30 days.
I believe the FCRA requires the collection agency to provide you with a copy of the original contract, the date of your last payment, the date it went into default and the amount due at the time of default (to avoid them from slapping additional interest or fees). Some have the proper information but many do not. Many just have a spreadsheet printout of the debts they purchased in bulk and if they are unable to validate the debt, you are not obligated to honor it and can dispute it on your credit report.
They do not have to provide the original contract. The threshold for validation is low enough to trip over. They do not have to answer you in 30 days.
You are referring to debt that is sold, but the vast majority of debt today is not sold. It gets sent to different collection agencies to be sure, but the credit card bank retains ownership.
Recent OCC guidance (2 years ago) to banks selling debt is to pass on the media needed for the purchaser to prove their claims.
Yes I was referring to debt that was sold. I wasn't sure about a copy of the original contract, but I do recall that they must name the original creditor if it had been sold multiple times, and the date the last payment was made which would show the default date and the amount at that time.
They do not have to answer within 30 days, but I believe you must dispute the debt or ask for debt validation during that period of time which is what I meant. Otherwise they simply state that a notice was mailed to the last known address of the debtor and no response was made so they claim they met the legal requirements.
I had a debt collector take me to court. I won the case because there was no contract binding me to the collector. So I did not have to pay collections. I've never paid collections and my debts are no longer on my record.
Hello Brother,
Did you go to court by yourself or some legal firm represented you..
I'm going through similar situation but I'm from Toronto, Canada..
Any advice pls.
@@ram0210 a lawyer. Not sure how Canada works. Check the original contract first. Also if you don't owe to much just pay it but get a written statement from collections first saying it will be deleted from your credit report. But I would talk to a lawyer first and get the best advise you can.
Love Canada by the way. Spent about a week in Calgary, for the Calgary stampede
You got lucky bro. That debt collector dropped the ball, and is definitely an anomaly. Most of the better (or worse) collectors are not that careless. People like Calvary Portfolio or a few others will have all the media, contracts, etc, in order to successfully sue you. If you ignore debt, or not pay it, you're rolling the dice. Sometimes you can get lucky and get out of the mess scott free, but other times, they wills screw you to the bone.
I've gotten more calls from fake "legit" debt collectors on things I've never had. Car payments and credit cards. Never even owned any of those. I always ignore these calls and I don't see how it will be any different if I ever do take out a real loan. How can this guy sit here and tell us these collectors are real and will hunt us down? They don't care about what we do or have time for that. This guy sounds like a spokes person for the debt collectors
Most people dealing with legitimate collections are looking for solutions to the problem. These videos are focused on helping people trying to resolve real debts.
You mentioned fake collection scams, which are , unfortunately, a real concern. Here is a video covering the topic: ruclips.net/video/8Et7HlitGF4/видео.html
I also have an article about that here: consumerrecoverynetwork.com/question/debt-collection-scams-fakes/
It's not uncommon to contact a person with a matching name, normally a few verification questions related to an account will let the collector know if he/she is actually speaking to the right person. In some cases, a collector can assist you in exposing fraudulent activity in relation to an account and at least point you in the right direction to help you.
+Sarah Divinetrix
Jumping on MB's points, that's exactly the truth. As I posted in another reply, just because that's true for you doesn't mean that's true for others. I had collectors contacting my ex wife, my job, old roommates, and they were all for legitimate debts that I owed years ago. It gets old hearing from people like you who have these "Specific" experiences with collectors, and that you feel like that's the truth for everyone. Even in the collections industry, they can reach farther than others in their own field. Which means you may have a debt sold to a smaller company who doesn't necessarily have the resources to "skip trace" and find you, yet another debt is sold to a company who does have those resources, and you find that they are hunting you down like a wild animal hunter. It all depends on the situation. It's not a one size fits all, and all debts are sold to one collection agency that behaves in the exact same manner. Even with the FDCPA act laws, some collectors still harass and threaten. If the advice Michael gives doesn't fit your situation, it doesn't mean it doesn't help thousands of others who are in collection situations different from yours.
Because he is one ctfu and he only speaking of rare cases
You're generally right but what he's telling you is as somewhat of the truth but he's holding back a little bit it's like throwing a ball but holding back a little bit it's the oldest f****** trick in the book
So, are you debt collector? Is that how you make your living?
No, and never have been.
I was literally about to comment that same thing 😂😂
The thing is the person you had the debt with sold it to a collector pennies on the dollar. So you had a contract with that company, not the debt collector.
Exactly, listen to this wizards magic words when discussing this: 'they sold your debt but that doesn't make it less valid'.
Yes, the debt may still be 'valid', but that doesn't mean that you have to pay the debt purchaser as you have no contract with them.
No, you don't have to pay. They are not forcing you to pay ..but again, it's still YOUR debt. You owe it.
Don't pay it? Want to cuss your collector who's just doing their job.?? Well in 6 months when it's on your credit report....well, your problem. Don't call the company who tried for months to collect and yell we reported negative remarks. Don't give a shit about your credit? Well, try and buy ANYTHING on credit again once you have a charge off...good luck!
And no...it's not pennies on the dollar. Idk why ppl say this...it's the dumbest shit I've ever heard. Actually late fee equal to $27-$38 per late fee, and no, even if you pay a day late, we could give a shit less your a good customer all year, there will be a late fee....we won't remove EVERY LATE FEE because your entitled ass thinks you deserve it. If you do, then ask nicely, if we can't, then take it and move on. So there will be late fees and interest which can be higher than that, adding up each month...THATS what collections gets, and we add fees and interest until it charges off and is an uncollectable debt...we don't add money, or get a 'quota' for getting so much money a day. Pay your bills and this fight won't be a big deal. I've been a collector for over 5 years, and I'm good at my job. I'm not a scammer, I could give a damn less if you pay it not...but SOMEWHERE out in the world there are ppl who actually appreciate we call when they are late. No, no we do not sell your account pennies on the dollar...it's the same you owe when we get it as when it left the original office.
@keristen you know you can pay a credit repair company to remove that collection right.
@@madilynandujar163 you actually can, but they can take up to 6 months to get all the accts straight
Meanwhile it's showing your past due until almost charge off date at 180 days. So they won't be able to remove that, and if they can during that six months the damage is done to your credit. Most bureaus won't remove a negative temark because you consolidated. You can start a PMT plan even when your not past due.I think those companies are scams to make money off you. They take 15% on top of all your "consolidated debt" when honestly most of your credit companies can do these plans and settlements for free to help you. Instead of paying someone else to get you the same thing.
This person is giving potentially misleading information -- in favor of collection agencies. Payments on old debts do reopen aging on old debts.
Are you saying that in reference to the SOL to sue resets the SOL like I mention, or that paying a 3 year old debt gives it 7 new years of credit reporting some how? It does not. A paid tax lien would do that. Most any other debt would not.
It boggles my mind that Eddi Haskell wrote what he did when you specifically stated the opposite in the video, as you confirmed in your reply.
Eddi seems lost, I agree with Bovee
I know that's true, Eddi Haskell. It happened to me in 2001 paying on a charged off account and it stayed in my credit report until 2008.
You're spreading misleading information. The date of first delinquency is hard set in stone. No one can reset it. Paying a tax lien is the only thing that will reset the date. FCRA act specifically states that it is 7years from date of first delinquency, not last activity on debt. Ive no idea where you people get that from.
Each state has a statue of limation. Most are three to fours yours. They can't sue you after that
How can a bank be allowed to write off debt as a loss for IRS and allow you to repay something they have gotten credit for?
I would ask that of a tax pro. But I am sure they can add any money they receive as an offset and account for that in a follow up filing.
Gwen Davis every company has an expense account for bad debt; they can record it when it happens or do an estimate monthly (ex. 5% of total debt is deemed uncollectable.) Most company do the estimate and write off that entire amount each year, doesn't matter if they have "uncollected debt" to apply.
If they do collect that amount the following year, then they do an adjustment to their books the following year to pay for the taxes for the amount they collected.
Exactly! Once written off, it's gone! The non-payment will remain on your credit report but that only comes into play if you try to get a loan to buy a house - with a low annual income. If you have a good job now (consider yourself lucky due to this virus thing), that is more important to a bank than something you didn't pay several years ago. WE bailed out all of these banks in 2008.. so literally, they owe US.
disabled veterans collecting VA disability dont need to pay credit card debt as legally they cant take disability payments, soooo its a win win.
Actually, we can use disability and other forms of voluntary payment from any sort of check. We cannot legally collect from that source of income, but we can take you to court and propose a certain amount each month, called garnishment....and if not a collectable source of income, then it charges off, you have bad remarks on your credit card and they won't approve you for a loan ever again.
Finally, someone who is telling the truth and not blowing smoke up everyone's butt!!
Lawyers will disagree with u!
Nancy Davieau yup ., I had a lawyer that recommended chapter 7 over 16k and my annual income is like 60k and I only had 3 balances 🤦♂️then I asked . If I do go with it am I good to do anymore spending ., she it the debt doesn’t matter because it gets wiped . But I did my research and realized that I would have been screwed trying to take that to court and ask for a chap 7 when I racked 7 k in 3 months of working with the lawyer 😫
Why don't you site the ways in which they will disagree? Unless you're a lawyer, you're pretty much just a keyboard warrior without a clue.
@@djcandyman661 why should they have to prove something to you? Was that comment directed at you?
@@mannyrodriguez3933 Was my comment directed at you? No? Then don't worry about my retort to someone else.
@@djcandyman661 was their comment directed at you? So why are you picking on people for no reason? If you are curious about something just ASK like a normal human being instead of calling people "keyboard" warriors. I mean what are you 12?
"NO CONTACT, CONTRACT WAS CANCELLED."
That is all you have to post on every credit reporting bureau! (In regards to collection accounts)(state of Texas)
Marshall can you be a little more detailed. What do you mean "no contact, contract was cancelled"
If you get a call and then reply with, I don’t have a contract with you, then you might not have read the contract from the OG creditor where you agreed that if lapsed and/or unpaid you would be sent to collections. Not only that, but the OG creditor is still actively involved in retrieving their money from you. Which means you will be provided with the OG contract you signed with highlighted fine print mailed from the collection agency. Stay on the phone. Prove your point. Get to the bottom of it. Hanging up does nothing.
That doesn't erase the debt, all it does is push it off the. Eventually it will come back , because you opened an account you had a contract, dont matter if it was signed physically most places now dont do physical signature contracts, they have you sign electronically etc. This is just a cheat tactic to try and avoid debts and it doesn't work when you actually did have a open account with a company
I NEVER paid the collector, I actually went back to the ORIGINAL creditor, paid them directly, and then disputed the collection acct on my credit reports as paid to original creditor. I provided proof of payment made out to the original creditor and ALL of the collections were taken off. I had three accounts that were like this and ALL three were removed. So, nah, you're not right. People need to check statutes for their states and know the laws for their states.
Were these medical debts or something other than bank loans or credit cards?
I highly recommend what you did when dealing with medical debts that were sent to debt collectors.
And it is legal to pay the original lender no matter what because they are who you took out the loan or credit card with. Your info is still in their system, which includes the amount owed.
You are 100% it is everyones legal right to only deal with the original.
I couldn't agree with you more! I studied the statutes of my state and compared to what he's talking about, he's leaving out a whole bunch of fact! Plus, he's only talking like the whole subject matter revolves around credit cards when there's all kinds of debt!
Serendipitous One i have an active collection account and the original creditor is T-Mobile. I am getting calls from a collection agency to setlle the debt. what would be the course of action?
That's dumb because if somebody decides to buy your deck it makes it there's no longer that's not mine no more.
I'm not going to get into the whys of my reasons for refusing to pay two creditors, but neither are on my credit report and they both stopped calling me. I explained to the first two or three callers why I refused to pay it, then said "listen carefully. I won't even pay this when Christ returns! " Worked both times
Returns from where, the clouds? lol
WeLikeItLikeThis really? You obviously don't believe
Yes I do believe! But it got my point across
What did you tell them like what were your reasons ? If you don't mind me asking.
In both cases I refused to pay the bills because of the actions of the creditors. The first one was the Canadian Imperial Bank of Commerce who my ex husband worked for as a bank manager. When I left him, he forged my RRSP's (K 14's I believe they're called in the US) He then deposited them into our joint account he told me he'd closed, then withdrew the money (over $8000) When I found out the bank told me that it was between me and my husband. NO! Their employee commited fraud and they didn't do anything about it. I ended up having to open another account with them so he could pay child support. Ten years after, he decided he wasn't going to pay anymore, which left an unpaid $500 overdraft. I refused to pay, telling them I wished I owed more. Second one was a legal aid lawyer I was using during my second divorce. He wanted me to settle for $450,000 less than I was entitled to from the business my ex husband and I owned, and I refused to. We were going to trial in a few days, and he told me he wouldn't be my lawyer if I didn't settle. I said fine. The day of the trial, he called up my ex's lawyer and gave her false information which the judge believed. I haven't heard from either of these creditors again, and it's been over five years, nor is it on my credit score
Thank you for this I’m tired of RUclipsrs saying I don’t have to pay my debts
Debt is money. Why do you have to pay? If you want to pay, pay. If you don't, then don't. Governments don't pay there debts why should we?
@@crbarnes001 I feel that
I already have a mortgage, buy all my cars with cash, and I have a bogus medical bill that will probably go to collections. Screw my credit score, fight me!
Lol hope you never have an accident where you lose that cash car or your happy home, but to be honest medical bills typically dont harn your cbr
You hate being financially responsible? Man that sucks for you.
Many years ago, I moved to another state. Almost immediately, I got calls from collectors. Even after I explained that I was not the person they were looking for, they persisted. It culminated in my being served by a deputy sheriff. Fortunately, I knew a man that was a partner in a large established law firm. He sued them for $800, and I never heard another thing.
My wife had an account with company, the state allows drop off credit after 7 years, so on the end of the sixth year, the company made claim my wife made a payment of one dollar, and that allowed them to renew the debt on her credit report. So this means they can keep it on her credit forever by just saying she made a one dollar payment every six years and eleven months.
Adding any new amount of time to credit reporting is a violation of federal laws that limit how long negative items can appear on your credit. There are limited exceptions, such as a tax liens. What was this debt about? You mentioned the state.
Pete Tetso
M
They committed fraud and you should have them investigated.
Do the opposite of what this guy says. If they bought your dept make them prove they bought it in court with full contract.
when it is charged off by original creditor..there is no contract .the filed taxes for the yr it was charged off.therefore it is a violation of the f.d.c.p.a.
Charge off is an account function. Debts are collectable after a charge off. Trying to collect on a debt after charge off is normal and not a violation.
Here is more about credit card charge offs: consumerrecoverynetwork.com/charge-off-and-credit-card-debt-what-it-means-to-you/
Michael, don't they get paid out by their insurance co.s when the charge off occurs. If so isn't that double dippping?
@@djmoreno1100 this is what they all do. Any financial assets are insured by the bank issued. So it it 2X dipping. And see how its all credit that was supplied by your signature means u dont owe anyone anyways. Just because its an accepted practice doesnt means that its legal.
@@aredubbz bullshit. Banks take a risk of loss when they lend money. Even if they have insurance for a bad debt, the insurance company will then have the right to come after you for the debt. They will sue you in the bank's name to do it.
Same thing if you are at fault in an auto accident, and the other driver's insurance covers it. They can come after you to recover what they paid. It is called subrogation.
There is no double dipping.
Untrue, charged off and being sold are separate things. He clearly explained this, you had a contract with the original company and even I'd it was sold that doesn't change the fact it's your debt. Like it or not its gonna end up hitting your credit and rightfully so if you decide you won't pay your bill . It's so simple. If you domt want to pay the bill you don't open the account. .. his us that hard to get? And again that statement is false, collections is not the same as debt buyers which again he clearly explains in the video
Believe this guy. He is either an Attorney or a veteran collector. I would recommend this company to resolve collection issues based on Mr. Bovee. He is giving a free consultation and he knows his biz!
Michael Bovee
i want to thank you so much i just got a 19% settlement from $1350 to $392 with C.O bank. thank you so much for your knowledge.
@@scottchristianson7599 i settled it before it got sold so there is no collection it shows up settled for less charge-off. as for as the charge-off im under the expression 6 years and 10 more months from now it falls off. because it's 7 years from charge off. i hope i worded it correctly.
I don’t know about the US but in the UK, if you don’t pay your debts, you could end up with a county court judgement or even an attachment of earnings. It’s in your best interests to pay off your debts.
Flat out lie! debt collectors DO NOT have REALTIME ACCESS to your CREDIT REPORT. Only when you apply for the loan or "debt" for the first time.
That is preposterous. What gave you that impression?
Check out this video: ruclips.net/video/y_TOcykYMKQ/видео.html
+Adam links, yes they in fact do. I know that for a fact because I have a debt collector who asked me a few detailed questions about items on my report. The contract they purchase from your original creditor gives them every right to pull your credit report on demand. Nothing you can do about it. You should do some due diligence before you accuse experts of lying.
An attempt to collect a debt is permissible purpose for a debt collector to access your credit report. Debt Collectors indeed have access to credit reports, legally. How do you think they find your new phone number magically after an inquiry?
As consumers become more educated over time many are more than willing to schedule payments with debt collectors based on the fact that they have the power to remove them from your report when the debt is satisfied and can update them as needed. So they absolutely have access to your report.
Thanks for the info!
8 rules of contract, you have no contract with a debt collection agency.
Dude. You're a real killjoy.
Phone bad. Mail good. You have a right to choose your method of communication.
You do, but those options often yield different outcomes.
Let me tell you something I got out of all of my hospital bills and credit card debts by no Contracting and disputing them off. I have not heard a word in over a year-and-a-half now from any of them on the matter do you know why that is because they're absolutely bogus contract that you're duped into believing are real
Hate to burst your bubble but that's not a very long time in terms of debt collection.
Personal experience: Years ago I had an old balance on a major department store for $480.00. It was 6 tears old. I wanted to clear my credit so I asked them if, I paid now, would they cancel the report on my credit report. They said no. I said OK, I will let just let it drop out of the report by itself next year. And it did. I think this is extremely stupid on the creditors' part.
Or you could save a bunch of time and headache and file for bankruptcy. A few months later you will start to get credit card offers in the mail, and after a few years, you can qualify for a mortgage. Sure, your credit score takes a hit but if you are currently in collections, your credit is mostly likely toast anyway. Fresh start!!
This is true. Filed in April 2018, and my credit score is already above 750.
This is horrible advice
Simple, answer the calls, and do not confirm data protection bs. Let them take you to court. Request proof of contract. Then move onto discovery, then move onto discussion of debt.
All moves cost them money. They can’t add additional costs once proceedings are in motion. If it is a low amount debt and you want to take it through to motions, they will back off.
Really, really good!!! Excellent public service thank you
A debt collector does not have to validate a debt until asked. If that’s true that’s an INSANITY could you Imagine if you went out to eat and someone says this is what you owe without a breakdown of the bill at the end of the meal and just says “ well you didn’t ask for one” what a joke
Sure, but I wouldn't pay an "outside" debt collector. If I owe, I will pay, but ONLY to who I owe. Period. These collector leeches aren't worth the time of day. They try to convince you you can't, but you can.
The FDCPA was enacted for a reason, and as of 2019 still exist. There is a reason for that. Every debt collector has a plan until they get hit (with the law).
School loans will hurt you
Would like to win the lottery 😫😫😫
I do like Mr. Bovee’s videos a lot, but I think he leaves out in this video an important question. If you have a 6 year old collection and you pay it, it won’t extend the reporting period but it will hurt your credit for the remainder of the reporting period, because the last activity on the account is more recent, and newer negative information carries more weight than older negative information. If you see this comment Mr. Bovee, I would love to see your response.
I too have seen someone's credit score drop temporarily when resolving a really old debt (though it is common for the score to increase quickly), but regularly still help and suggest it for people needing to qualify for a mortgage, or reach other goals.
If it were me with an unpaid collection that is passed the SOL to sue in my state, and I am not trying to buy a home, or other major financing goal, I am likely letting accounts age off my credit unresolved. More so if it is only a year out from dropping.
Hi Michael, I enjoy many of your videos and really appreciate you/them!
I'm currently in debt for £400 for energy bills (they added over £100 in late payment fees). So a debt collection agency bought my debt off Scottish Power and I've not been answering their calls (calling me several times per day). My question is, on what grounds do I owe these people money? I never signed or agreed anything with them, never even spoke to them.
thank you
Never, never, never ask for debt validation from a debt buyer like Portfolio. It puts a target target on your back and they will eventually sue you. Best to avoid them and challenge them with the credit bureaus with factual errors on your report.
That’s not always true. It can depend on how much you owe the original creditor. If they purchased this debt for Pennie’s on the dollar and the debt is less then $1,500 more then likely they will not even bother to go after you because it cost them more to do that. They literally have to prove everything in court with the debt. I’ve been sued by a collection company and won easily against them..
My delinquent account is marked on my credit as a "charge off", meaning they're writing them off as a loss. If another 3rd party buys it up and tries to make me pay by intimidating me, that's their problem. Sorry about your luck boys. You bought the wrong account.
A charge-off will damage your credit rating. I was listening to this on a different Channel and one of my bank Representatives talk to me about that. Don't think a charge-off is a loss on there and it's also a loss on your end especially if companies want to see your credit report before hiring you. I'm also told that you have to pay the tax on the money they charged off because the IRS considers that income. Verify that please because I'm guessing based on what I was told by bankers who talked way too fast and have loaned out way too much money to way too many people.
I used to be horrible at paying my bills. Always played the game of letting it go collections & then try to get out of it & Dispute it etc. It's dumb. You need to just pay it. Pay it immediately, as soon as you get a letter. Call the creditor or collection agency immediately & pay it right away, before it reports.
Me, too; this happened to me after the insurance company I worked for was taken over and I was let go. I had trouble paying my bills, I used to get collection calls, and I can tell you, this is not one bit pleasant. I got a windfall after my father had passed on, and I was able to settle these debts for less than what they were worth.
Cheryl Keil ye, I know. There was this small loan that I owed about $800 on. Called the creditor and was ready to pay the full amount, but it was too late. They already sent it to collections. I contacted the collection agency and was able to settle for about $400.
$400 was less than the amount I borrowed. So, I actually made money.
Thanks for the info. I have a very small debt ($125) from a couple years ago that has since gone to multiple collection agencies. The latest one says I now owe $475. Those are just fees added by other agencies! Do I have to pay those fees? Should I send one of the form letters we see online asking for proof, etc., and offer a small percentage? In their letter they offered my 60% off that amount. Thanks for any help!
Who is the original creditor? Who is the new debt owner if the account was sold? Who is the current collection agency offering the discount?
Just ride that out stop contact
@Sherry Gustafson I tried that once, when I wasn't even aware something had been sent to collections. They said they weren't allowed to accept it, because the debt was sold, and owed to the collection agency.
That's not true, because I payed a debt collector $300 from a debt I owed back from a year ago, guess what? That negative mark did not go any where. So, it did not get me on the right track at all. It was from a slimy credit card company when I was young and didn't know much about credit cards and did not read reviews before applying. I just wanted them to stop calling me and harassing me all day.
This video definitely conflicts with what I have been told.
Yo Michael ... Thanks
explain HJR 192 of 1933
You can't pay a debt with a debt
the green backs in your wallet are debt notes
Hello sir, I have a question... I have two debts both phone carrier debts, at&t and sprint. Both are over 4 years old and a company called ERC has both of my debts.
The AT&T debt is $325 and the Sprint debt is $225, I received a letter in in the mail asking me to pay the debt for "sprint" and they're willing to even reduce my current balance of 225$.
I definitely would like to pay this off ASAP any tips you can give me once I pay it off what normally happens? I just want to make sure they erased this for good because it's killing my credit
They generally are not going to drop it from your credit reports, but update it to show paid, which will still allow for improvements to your credit and options for financing.
Michael Bovee So should I pay it in in full or the discounted options they gave me?
An account this old will not matter much whether you pay in fill or take the deal. For that reason, if it were me, I would take the deal.
It's always going to negatively impact your credit. You're better off investing the money you would spend on paying it off, in a loan, or other forms of credit building which will positively impact your credit. I went from 590 to 712 only with secured cards, self lender loans, eventually normal cards, focusing on low utilization, all while having 3 hits on my credit, ATT for 600$, Comcast for 300 something and a 60$ from some random company. Round 1k in debt. Yet I was able to get into 700s despite not paying them. Two of them write off next year in June and while I focus on building credit further in the meantime, I'll only be better off in June of next year all without blowing 1k on some random debt company on behalf of original debtors.
leoleonardo good shitt!
I just paid $934.00 After receiving a letter saying I'm being sued! I had a docket # from superior court & I called the court they had my info & said send them a money order with a letter take a picture etc. I did all that! Sent it over to the Law office that I got the letter from which had 3 pages & Said I signed to agreement to have my Kohls card. I dont know if I feel stupid or I should've done that because it was through court. 😔
Hello Michael,
You have great information. Thank you for sharing your knowledge. I have a situation with a student loan I have from 2006-07. The loan was given to the IRS to handle & they have been garnishing my income tax since 2010. They harass me saying I haven't paid them when they are taking my income tax each year. The interest is always like a thousand per year. The initial amount was for $5000. But it will never go down past $1200. I am tired of them garnishing my income tax each year. How can I deal with this. I feel like I am being robbed each time.
You will want to get your loans out of default. Here is the information you need to get started: studentaid.ed.gov/sa/repay-loans/default/get-out
Yup. More like a lottery ticket that costs the same as a sports car or more. For every one "success" story I've heard with student loans, I've heard 5+ of people drowning in debt with jobs barely able to pay the payments. Sad. I'm glad I never got hooked into that bullshit.
Not a myth. I disputed after my debt was purchased and it was removed from my credit. I didn't owe that company and penny, never did business with them. I also never acknowledged a debt with that collection agency because I didn't have one with them.
Great video! Thanks for all you do sir.
I am being sued for a doctor bill. They have filed suit. It says if I don't answer in thirty days, I will owe the debt. It's from a lawyer.
Check out this video about collections in the court: ruclips.net/video/LdJnrNO5nmg/видео.html
Thanks for clearing this up. I'm so sick of hearing Never pay a debt collector or use your birth certificate to pay off your debt.
you may be sick to hear it, but that's the proper course of action...
@@66wow99 So basically its not worth paying a collector?
you got it, This guy is full of shit trying to suck you in to paying old debts.
And there is GDPR protection which means that you have all the rights to get your data deleted.
P.S. I’ve got my debts written off in UK and it really worked…
ok so unpaid debt can be reported on your credit bureau indefinitely meaning it never goes away. Pay your damn bills and this won't happen.
Most unpaid debt ages off the credit reports after 7 years from when you stopped paying on it.
Yeah. I've been in situations where they called me asking to verify who I am by giving them my name without even telling me who I'm talking to. If the first thing they're going to say is Hello, is this ____ ___________? I'm immediately going to be suspicious and ask questions like, "who is this"? and "how did you get this number"? Not a very professional way to start a conversation, especially if they won't talk to you if you don't verify your DOB and soc number over the phone. They'll call from call centers in Texas or Tennessee but have an instate area code. Sorry, but they just come off as scam artists. I don't give nor should anybody give their personal info like that over the phone.
You should always pay debt that you owe. If you can't afford something due to lack of income, don't get in debt to purchase it. If you loose your job and can't pay, then get another job and pay! Always pay your debts. It's the best way to keep an outstanding credit rating/number/score.
That is certainly conventional wisdom, but not all that helpful to someone already overwhelmed by debt.
You work for bank or collation.
Don't pay
I'm still getting collection letters from a collection agency in CA from rental apartments that I never lived in, stupid me offered my credit to help someone I trusted. Long story short... this person left the apartment after 3 month and never paid rent. This happened in January 2011 and almost 10 years later and I still get the collection letters. I never paid the them or settle any type of paymen
I never saw anything weird on my credit score. I was just trying to make the other person pay but never happened. Should I be worry?
Unless the collection went to court years back, this would be zombie debt that cannot really impact you. More on that in this video: ruclips.net/video/AehXi8m3IT4/видео.html
Little bit of Truth mixed with a lot of lies is quite a dangerous thing.
Do you know a chapter 7 is only supposed to be on credit report for 7 years? They bumped it up to 10 years now😢
if you already had your bankruptcy, then you should get grandfathered in for the 7 years you know? They could just change it on you like that ?
If rather go to court then pay them .....yoir credit is already bad and I trust the courts rather then these scam artist
Well, banks can also sell your debt rather it's good or bad. Selling debt is selling debt. You'll just continue to pay that institution into your account. It doesn't change the terms of your account.
A debt collector is asking me to pay a $1200 debt generated from an apartment complex 2 years ago. I called them and tried to settle for $600. The would not budge or settle. It is the only only debt I have at 47 years old. My credit score is climbing quickly and paying this will help, but why wont they settle for less. Any insight would greatly be appreciated.
I would not expect to settle with one phone call. It can take many, and it is not all that unusual to hear no on the first few calls.
There are debts that will not settle for less some times, but you can usually get a slight reduction of 20% without too much hassle.
If I owe you that's your problem.
Thank you very much for this video sir. I really appreciate it. On a completely side note, I don't know if you are a fan of the TV show Whose Line Is It Anyway? But it is awesome and everyone on this is awesome and if you take Ryan Stiles and Colin Mochrie and morphed them together it would look exactly like you. That is a compliment sir. You have a very friendly and non-intimidating face.
This only covers credit debt.
I’ve already been served by a collection attorney. I called his office. So far they’ve offered to settle for about $550 less than they’re seeking in the lawsuit. I think I can probably get them down more. My biggest concern is if I pay them a lump sum for a final settle that it will really end there. I’m worried they will continue to go after me or proceed with the lawsuit. Should I be so worried about paying them?
You would want to get the settlement in writing before you pay.
Attorneys in the middle of litigating a case are typically just as eager to get things in writing as you are.
They don't have everything to sue you majority of the time they're hoping that u dont show up
They get judgements by default. You're misinforming people with your information
No argument that debt collectors would like it if no one shows up, and that the whole legal collection framework relies heavily on getting default judgments. That is more than accurate.
But what about what I say in the video is misinformation?
Debt collection in the courts evolves.
The OCC now requires banks to sell their debt with the required media to back up their claims.
Some states require the foundational documents to support a claim be in your possession prior to filing.
It is harder to win, or get cases dismissed on documentation alone, than it was 10 years ago.
#3 Debt Validation -- You have a different definition of debt validation than I do. Yes, the debt is considered valid if there was a line of credit behind it. However, there's also the consideration of whether an individual charge itself is valid. I've had times where creditors have tacked on additional surcharges for monthly services. Unless the original creditor can validate that the remaining balance indeed comprises valid charges for services rendered, then the debt is actually invalid. If the original creditor cannot provide documentation for specific charges (i.e., itemizing the charges to specific services rendered), then the debt should not be paid.
As an example, I attempted to have AT&T send me documentation 3 times regarding a charge sent to a debt collector. None of those three attempts could AT&T pull up the charge in their computer system and provide documentation of services rendered that links to those specific charges. In fact, I couldn't even find a bill sent to me by AT&T that had that specific dollar amount collected. Because AT&T couldn't provide such documentation (a bill or similar) stating what the charges link to, I told both AT&T and its collector to go take a hike.
Question :
There are a lot of telephone scamming going on lately. How do I tell if it's a legitimate phone call from a collection agency or three people in a living room with laptops scamming people out of money online.?
If you have a legitimate debt and are worried if a collection agency contacting you is legit, you can call the creditor and ask who they placed, or sold your account to.
@@MichaelBovee Hey, thanx for the advice.
Call the number on the back of your card and ask for info on last call. It should always give a time even if you hung up. And they can give you info about you only your collector would know such as last purchase and amount. The St name you live on, year you were both, things like that. What bank you have on file if you have one, but only after you verify a few things because we legally cannot give out your personal info
Kirsten Hoyle hey, thanx man.:-)
Why would I be contacted by a collection agency, not pay the entirety of my debt BUT the collections never hit my credit report? I am living in fear that someday it will. How can I know if it will or won’t?
Can you tell me who you stopped paying and when? And does that creditor still show a balance as owed to them on your credit reports?
In many situations, the creditor is still reporting an unpaid collection owed to them, and each collection agency they send it to will not show an additional collection item. Other times, the creditor may sell the account and the new owner of the debt will show collection item owed to them.
You forgot to mention that if a debt collector can't collect, they re sell it to another collector, who tries and the clock starts again. If they fail, they re sell to yet another and AGAIN the clock resets. I have 2 outstanding collections, the ORIGINAL date was from 2005 (cell phone due to cancellation) and my credit report keeps showing "Placed for collection" LONG after the original default. (The totals are less than $300 total, but I kept disputing the fees because the contract was long since satisfied and they tried to charge cancellation fees). This should have dropped off LONG ago, but because they keep getting re sold, the clock keeps getting reset.
Those resets are violations. I would pursue them if it were me.
I have a $7,000 Debt orginal creditor to my college in collections. It was almost 2 years old and I just noticed the company changed and the Original date was changed as well. However I am in CT & It was not as old as the comment above. In this situation, should I pursue them for resetting the debt?
Who is responsible for someone that has died?
Can you be more specific with the details?
Often times debts become part of an estate.
There are many times the debt can just cease with a persons passing.
Contacting the original creditor to find out who the debt is with would only work if it wasnt sold off to another Collections company a lot of times it can get sold off many times after the first Collection bought it.
This all makes sense for money that you've physically spent, such as a credit card. What about medical debt where you don't even have a dollar amount for your services until weeks or months later?
I have been trying to find answers to the same question. I had a baby in January, which more than doubled our debt, which *was* down to only my husband's student loans.
Credit, money, debts. All of these things only have value if people give them value. Chains of the rat race. We are all fleeting sparks of energy, credit, money, debt completely meaningless to those who see the big picture of a fleeting existence. If the vultures start circling, block, ignore and move on with your life. The problem is theirs, not yours.
I'm confused. They can sue you and garnish your wages without you even knowing that you were sued? I am not understanding the court process. How can I miss a court date if I didn't know it existed? That's unfair and seemingly illegal. So - I can sue someone not send them anything in the mail or at least certified mail and if they don't respond to my letter - then the court rules in my favor stating that they indeed owe the debt?
That is what has often been referred to as "sewer service" and is wrong. It is still a very real problem today. If that has happened to you I would talk with an experienced debt collection defense attorney in your state. I would also think about filing complaints against the plaintiff and the collection law firm with the CFPB. I would also look to file state bar complaints against the attorneys involved in your court filing.
Is it true when they say your wife’s debt is your debt? They are calling me to try and pay her debt.
Can you be more specific about the situation and details? Who is involved? How old is the bill? Were you on the account in any way? What state are you in?
Michael Bovee we live in California and they would be dental bills for her kids. These were before we got married and we got married 10 years ago.
Okay. Debts that are more than 4 years unpaid are passed the SOL to sue in California. That does not mean they cannot try to collect by calling and writing, but you can put a stop to that too. These debts sound like they are too old to show on her credit reports too.
Check out this video on zombie debt, as that is what you appear to be dealing with: ruclips.net/video/AehXi8m3IT4/видео.html
I got a call from "global radius solutions". They asked if I was who they were trying to reach and I confirmed I was. They then asked for my address and social security which I refused. I asked in what regards this is for because I do have unsettled debts but they refuse to tell me until I give them my info and on top of that the number is a local number in my city.
They should send an initial collection notice within 5 days of that call, and that letter should give details about the debt.
The local number thing is spoofing and trick they use, like telemarketers now do too, to get you to pick up.
Do not pay! Debt collectors
Why must anyone pay off a debt that has been repaid to the original Creditor as a "write-off" against their taxes? They receive the ability to deduct the full amount as a bad debt which reduces their taxable income. Then the law permits that Creditor to sell the debt account, admittedly for a smaller amount, to a Collection Agency. This obviously benefits both Creditor and Agency, but not the Consumer.
This system is hopelessly rigged against the Consumer. Why should we not demand a repeal of this double-dipping? Having the write-off on the Consumer's credit history for years is bad enough punishment. The added Collection Agency part seems very much like "cruel and unusual" punishment. Repeal this, Congress. Now.
If you let a rental company run a credit check on you because you are helping a friend get an apartment; however, you did not sign a lease or rental agreement, can the rental company sue you if the person bails on the apartment owing rent and damages?
I suppose they could try, but if they did I would get with an experienced debt collection consumer law attorney in your area real quick and see how they can help you not just defend, but bring an action against the collectors involved.
@@MichaelBovee thank you
And don't forget, they have 5 yrs to put you in court. After about 7 yrs. All that crap will be removed off your credit reports, which will raise you credit ratings. In my case unbelievable high medical costs, which I refuse to pay. But keep the rest of your credit up dated, and you will be a HERO. Return any Certified Mail, that you are not expecting!
You'll probably find that it's in the terms of your agreement, that any arrears can be sold to and collected by a third party. Check your terms.
And take proper legal advice. RUclips is not proper legal advice.
Apparently everyone's either lying or wrong except for this guy who sounds like he really owns a debt collection agency
yeah so dont believe him and dont pay debit collectors and dont answer their calls
How can you tell if the debt is being sold to debt collector rather than if the debt collector is acting on behalf of the creditor?
You can call the original creditor to verify that.
You can see if the original creditor is showing a zero balance owed on your credit reports, even though it was not paid. This will often mean a new company is reporting the amount owed to them, though not always, as some debt buyers do not credit report.
There are holes with relying on credit reporting when it comes to medical, utility, and other bills that are generally not reported by the service provider. It may be the collection agency reporting at all on these types of accounts.
When it comes to credit cards and personal loans, calling and checking your credit is a pretty reliable way to check.
You can also look for how the original creditor, and current owner, are often shown on the collection notices.
What happened if you can’t pay back? Do you get lock up?
I just got a letter from a debt collector but I paid that off but the credit card company keeps trying to get money.
Michael, the link about statues of limitations by state is very helpful. I was worried about talking in the phone but feel better now. Are bills like old accounts with Verizon are typically the same as credit cards with regards to SOL?
It depends on the state, but yeah, mostly they are.
I tried ignoring a debt because I couldn't pay, and it went to a collection agency and I got sued and I had to pay
I guess I won't dispute with 609 or 611 dispute letters and just wait until it falls off in 7!years
Oh wait why did they remove all my collections did they make a mistake?
It’s a new rule debt validation in the states btw (: