If you’ve ever been contacted by a collection agency, you know how stressful and uncomfortable it can be. Dealing with debt can be overwhelming, but it can be even more challenging when you have to deal with collection agencies attempting to collect the debt, which is often done aggressively. But did you know that there are things that collection agencies don’t want you to know? In this blog post, we will be revealing the top things that collection agencies don’t want you to know, so that you can protect yourself and your finances.
1. They Cannot Threaten Legal Action:
Many collection agencies use scare tactics as a way to get debtors to pay off their debt quicker. However, it is important to know that it is illegal for a debt collector to threaten legal action against you if they do not plan on taking legal action. If a collection agency is threatening to sue you, make sure to ask the collector for proof and to speak with a lawyer if necessary.
2. Old Debts Can Be Written off:
While you may feel that old debts will stay on your credit report for the rest of your life, it’s important to know that this is not the case. Collection agencies can only try to collect unpaid debts for a certain amount of time, and after that, the debt can be written off. This is known as the statute of limitations, and it varies from state to state.
3. You Have the Right to Request Validation:
Many collection agencies will try to collect a debt without providing you with any proof that you are responsible for it. As a debtor, you have the right to request proof that the debt is, in fact, yours. This is known as debt validation, and it can help to ensure that you are not paying a debt that you do not owe.
4. Debt Settlements Are Negotiable:
If you are unable to pay off a debt in full, you may be able to negotiate a settlement with the collection agency. A settlement is an agreement between you and the collection agency for you to pay less than the full amount owed. Keep in mind that collection agencies buy debts for pennies on the dollar and their goal is to collect as much as they can, so don’t be afraid to negotiate your terms.
5. You Can Dispute a Debt:
If you believe that you do not owe a debt that a collection agency is attempting to collect from you, you have the right to dispute it. You can dispute a debt in writing within 30 days of being contacted by the collection agency, and upon receiving your dispute, the collection agency is required to provide you with proof that you owe the debt.
Conclusion:
Dealing with a collection agency can be a stressful experience, but it’s important to know that you have rights as a debtor. Collection agencies do not want you to know these rights, but by understanding them, you can protect yourself and your finances. Remember that you have the right to debt validation, to negotiate a debt settlement, to dispute a debt, and that collection agencies cannot threaten to take legal action if they don’t plan to do so. Always stay informed, and don’t let debt collection agencies take advantage of you.