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Why You Should Never Pay A Collection Agency & Still Get it Off Your Credit Report
You've been called by them, and intiminated..its time for you to fight back.
Having loads of debt can really stress you out. It can be so bad that you want to just file bankruptcy and end those aggravating collection calls. The truth is these collection companies want to intimidate you so you will pay them. Collection companies have more scams than most websites out there. Collection agencies don’t want you to know your rights.
When you are in debt, the lender has a certain amount of years that they can come after you, and sue for the amount owed to them. This is called the statute of limitations. It can be different for every state and for different kinds of debts. Anywhere from 4-6 years is usually the average. Most people do not even know this, and just make payments to collection agencies anyway. Collectors have a way to scare you into paying them, and most of what they say are down right lies. I have had my share with them, and I know how mean and scary they can be.
The first thing you need to know is that by law, you do not even owe a collection agency until they validate the debt. They are not supposed to come after you unless it is validated. They ruin your credit report and score when they report wrong information on purpose just to scare you into paying them. In many cases, you don’t even have to send them a letter validating debt because the collection can be deleted from your report just by disputing it with the bureaus. Bureaus will delete the collection if they do not validate it to them. I had a debt that was listed on a collection on my report and they reported incorrect information re-aging the account. I disputed it with all 3 bureaus, and it got deleted every time. Always try to do that first. If that fails, then sending a certified letter to the collector for validation is the best. They must have proof of the original lender, the signed contract and bills.
Almost 100% of the time, they don’t have all those records. This is where you win, and even if you do owe money you can get out of it. Do not let collectors intimidate you and make you pay because paying on a collection hurts your score even more. When you pay a charged off account or a collection it can make it new. Collectors often re-age accounts, which is where they make a new date for when you last missed a payment, or the date of opening the account. This is actually against the law, and by itself can get the collector off your report. Re-aging sets the clock back on your account and can make it stay for an additional 7 years. Collectors do illegal things like this all the time just to be paid.
Don’t fall for these tricks! Never pay them unless they validate the debt, and make sure they don’t re-age your account. If you are in doubt about the account’s dates and payments, DISPUTE. It is easy to dispute you can go to Equifax, Experian, or Transunion’s websites and make an online dispute. Collectors are aggressive and will take on a debt way past the statute of limitations illegally. Don’t let them take advantage of you, fight back. Get yourself that good credit that you deserve, and you don’t have to go bankrupt.
Find out how to get your credit score for free without scams on a daily basis: http://jessicasmetz.hubpages.com/hub/How-To-Get-Your-Credit-Score-Anytime-You-Want-For-Free