What happens to me when the debt is sold? Once your debt has been sold you owe the buyer money, not the original creditor. The debt purchaser must follow the same rules as your original creditor. You keep all the same legal rights.
Yes, they can sell it without your permission. The law doesn't prohibit them from doing this and trust me when I say that they routinely do this. Because they have the right to collect, they have the right to sell the debt to anyone. This applies not just for credit card companies, but to any person that is owed money.
You also have the right to dispute the debt if you believe it is inaccurate, the amount is wrong or you don't recognize the debt. You can request validation from the debt collector, requiring them to prove that you owe the debt and that they have the legal right to collect it.
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
Specifically, the rule states that a debt collector cannot: Make more than seven calls within a seven-day period to a consumer regarding a specific debt. Call a consumer within seven days after having a telephone conversation about that debt.
Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.
2) What is the 609 loophole? The “609 loophole” is a misconception. Section 609 of the Fair Credit Reporting Act (FCRA) allows consumers to request their credit file information. It does not guarantee the removal of negative items but requires credit bureaus to verify the accuracy of disputed information.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.
Do You Have to Pay Debt Collectors? Yes, if a debt collector has contacted you about a legitimate debt, you are legally obligated to pay it. However, it's essential first to verify that the debt is yours and the amount is correct.
Your creditors can transfer and sell your debt to a collection agency without your permission. However, the collection agency must contact you about the sale before attempting to collect the debt.
While smaller debts are less likely to result in legal action, there are no guarantees. In many cases, though, debt collectors will prioritize larger debts, as they offer a higher return on the time and legal fees associated with a lawsuit.
A 609 letter is a tool you can use to request information about items on your credit report or to challenge incorrect entries. It's named after Section 609 of the Fair Credit Reporting Act (FCRA), a federal law that protects consumers from unfair credit reporting practices.
4) 623 credit dispute letter
A business uses a 623 credit dispute letter when all other attempts to remove dispute information have failed.
The "credit card debt loophole" refers to certain strategies people use to minimize or eliminate credit card debt. Common methods that fall under this umbrella include: Transferring debt to cards with low or 0% interest rates for a promotional period.
Paying an old collection debt can actually lower your credit score temporarily. That's because it re-ages the account, making it more recent again. This can hurt more than help in the short term. Even after it's paid, the negative status of “paid collection” will continue damaging your score for years.
Even though your card issuer "writes off" the account, you're still responsible for paying the debt. Whether you repay the amount or not, the missed payments and the charge-off will appear on your credit reports for seven years and likely cause severe credit score damage.
When you answer the phone, as soon as you know it's a creditor or debt collector, HANG UP THE PHONE. If they call again, HANG UP THE PHONE. Do this as often as you need to until they stop calling. Tell your friends and family to do the same thing if they are called about your bill, debt or judgment.
A debt collector cannot lie or use deceptive practices to collect a debt. They cannot falsely claim to be attorneys or government representatives, misrepresent the amount you owe, falsely claim you've committed a crime or threaten legal action they cannot or do not intend to take.