Debt collection companies use all types of unethical practices to collect on credit card debt. Some collectors threaten to arrest. Some say they will sue you. While they may be in their right to pursue legal action, more times than not that is a last resort option they will pursue if they have a reason to believe that you can pay the debt. One aspect I want to write about is how there are statute of limitations on debt.
If you are on private land such as a supermarket car park the “fine” is not actually a fine and will have come from a private company. Private parking charges are unenforceable in Court although they will often sell these “fines” to a private company and they will hassle you. Simply refer them to the driver of the car but don’t say who the driver is. That should get rid of it. Expect them to write to you lots of times but you can simply ignore the correspondence. A friend of mine has been getting letters from a Debt collection companies in respect of his overstay in a supermarket car park, for the last two years. He simply ignores them.
It has to be reflexive; when anyone calls about the loan that you aren’t completely sure is current, you have to automatically deny it’s yours. If you show the slightest amount of hesitation, they can use that as proof that you do owe them something. All you need to do is to ask them to send you proof. The Fair Debt Collection Practices Act requires that they provide you with this kind of proof.
The truth of the matter is that many of the credit accounts that go delinquent do not result in immediate lawsuits. What happens in many cases is that the original creditor, whether it is a department store or a financial institution, sells the delinquent account to a collection agency or junk debt buyer. Buying and selling debt is a very large business.
The original creditor does this to wash its hands of the bad debt, and the collection agency likes this exchange because it is able to purchase these delinquent accounts at a substantial discount, often for only a few pennies on the dollar. What does this have to do with you going to court on one of these cases? Read on.
Request your debt collector to stop collecting. Yes, you can actually request to a creditor or debt collector to stop contacting you about your debts by sending a letter. Under the law, creditors and debt collectors should respect this request. Nevertheless, this does not discharge you from your responsibility to pay for your debts.
How to pay off a debt collection company slowly is a matter of knowing what you owe, making a plan for repayment, and then standing firm on that plan. It may seem difficult at first, but there are things you can do to make the process go more smoothly; it’s just a matter of knowing what to do.