Do you know to whom you owe that money?
You may be surprised to find out that many of those bills you have at home are
not being paid to who you think they are or to the original company who issue
you the loan or line of credit. It is common practice in the industry to sell
of debts to collection agencies, which then chase you down for a fraction of
the original debt amount. These collection agencies are given the right to buy
up your outstanding debt at times for as little as one penny to the dollar!
They have become such a facet of the credit industry that collection agencies
stock shares are now even being traded on Wall Street.
For debt related questions, call 888-314-1403
The good news
The upside to this debt shuffle is that these collection agencies are bound by
the law of FDCPA, the Fair Debt Credit Practices Act, put in place to protect
consumers and gives you a weapon to fight back against these creditors. Once
your debt has been moved out of the hands of the original creditor, you have
the opportunity put the burden of proof on the new owner of your debt.
What Do I Do Now?
First how do we know who has what collection accounts and are they the original
collector. The easiest way to get all the information current and in the same
place is to request your free credit report
now. Once you know the collection
agency and which account they have of yours you can start the process of making
them prove you owe the outstanding debt to them
Ask for the debt history
You need to put those annoying creditors to work, here is how. Consolidate your
. First, make them prove that they actually own your debt or that it has
been properly assigned. Contact them and demand to see the contract. Next
really stick it them and make them work. Ask some statements from your original
creditor for the account in question to be provided to you. You can this one
painful step further by demanding a complete payment history of the account,
beginning where it started, your original creditor. Scrutinize everything and
look for small factual errors that you can us to negate the contract.
Don't let them turn the table
Under the FDCPA, these collection agencies cannot turn around and ask you to
supply the payment histories or any documents for that matter. The burden of
proof lies solely with the collection agency, don't be fooled into thinking
otherwise. If you need help, connect with a credit specialist now by calling
Related Articles:Composing a Letter to Stop 3rd Party Collection Calls Debt Verification Letter: Free Sample/Template Debt Negotiation Letter: Free Sample/TemplateSample Letter for Mortgage Hardship, Loan ModificationSample Debt Letter Requesting Bank to Lower