Disputing an old collection account can trigger the collection agency to renew their collection efforts or sell the debt to a new debt collector.
Proceed with caution if a debt collector calls you out of the blue. It may be a scam collector especially if they threaten arrest, legal action or wage garnishment.
If a debt collector cannot provide debt validation, you may be able to negotiate a reduced settlement of the debt, or even eliminate the debt in full.
If a debt collector charges high interest, review your state debt collection laws along with the Federal FDCPA which puts limitations on debt collectors
Don’t let medical debt unknown to you sit on your credit reports, there are steps you can take to have the negative marks deleted.
Collection agencies that sell a debt should delete their negative notation to avoid multiple debt collectors reporting simultaneously for the same debt.
Debts often change hands. It’s not unusual to have more than one debt collector on credit reports for the same debt. Most debt collectors will delete their reporting on debts they are no longer pursuing once you request or dispute the debt.
If you have ever been contacted by a debt collector regarding a debt you are sure is not owed, you are not alone. Phantom debt is on the rise and becoming a very lucrative practice — although it is illegal. Phantom debt is debt that you do not legally owe. The continued growth of the…
Once a collection account lands on your credit reports it can stay for up to 7 years from the date of the original account’s default regardless payment.
An inaccurate or misleading collection account will lower your credit score. Either because of clerical errors or miscommunication, collection accounts are among the most common errors on credit reports. That’s why factual disputes are better than disputing “account not mine”, especially if the account is really yours. To find factual errors go through the negative…