Have you ever imaged the answers to the following questions: how to respond to a collection letter when the debt is not yours, will a debt follow me if I moved to another state, what happens if I signed for a certified mail receipt coming from a collection agency, what happens if I send a post dated check to the collector, does it matter if the collection agency owns the debt, why were little bills in the $50 dollar range placed on my credit report, and what happens if the collection agency tries to sue me when the statute of limitation on the debt has expired. Well, in this article, I will provide you with the answers to all the above questions.

Answers and Questions

The debt they said that I owe is not mine. What Can I do?

Send the creditor and the collection agency a validation letter within 30 days of receiving their notice. At the same time, pull a copy of your credit report to see whether the debt has been reported. If the negative item has not been reported, wait for your validation letter, which should prove that you do not owe the debt.

If the item is being reported on your credit report, send a second letter to the credit bureau and collection agency disputing it and stating that they are in violation of the FCPA and the FDCPA. State that they must delete the item now, or you will file a lawsuit. If you do hear back from the credit bureau and collector stating that the debt is yours, then file a complaint with the FTC and the attorney general's office. In addition, talk with an attorney about seeking damages and an injunctive relief in small claims court.

Can the collection agency come after me if I move to another state?

No, the creditor cannot assign your debt to a collector in the new state you live in. They must try to collect only in the state that the debt was created in, unless you are sued and they get a judgment. If this happens, they can transfer the judgment to you in your new state.

Should I sign for certified mail from the collectors?

No, because it gives the collection agency proof that you received their demand letter, and they can use it against you in court.

Should I send the collection agency a postdated check?

No, never send a post dated check because they will simply break the law and cash it before the cash date. This will put your checking account into the negative if you don't have the money to cover the check. Don't give out your account number when setting up a payment arrangement because they will debit what they want until the debt is satisfied. Just send them a money order from the post office or a cashier's check from a bank that you do not belong to.

Why do I care if the debt is assigned or bought?

With assigned accounts, the collection agency does not own the debt, and therefore you don't owe them any money unless you have a clause in your original contract stating that you are responsible for paying back the money to your creditor or whom they assign.

Why did the collection agency place little debts on my credit report?

They placed the small outstanding debts on your credit reports hoping that once you needed a credit card, you would call them up and pay the bill.

What if they try to sue me over an expired debt?

Go to court and argue that the state statute of limitation of the debt has expired, and then file a counter claim claiming violation of the FDCPA for trying to collect on an outdated account.

As you can see, there are many things you must know about collection agencies. The question and answers above are just a few things you need to know to better prepare you for the big bad agencies. Now that you are empowered with more information, go out there, and take action.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets on credit repair, debt settlement, stopping collectors, rebuilding your credit, and raising your score, please read the first chapter of The Credit Repair EBook for Free and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com
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