Credit Repair and Rogue Collectors

Many people assume that collectors have the right to collect because they say so. This is not so. There are several situations that you should be on the alert for. In the world of collectors, forewarned is forearmed.

Sold Collections

What if someone knocked at your door and told you that they were there to collect money that you had lent to someone else may years ago? Wouldn’t you investigate their right to collect prior to handing over the money? If you receive a collection notice from a collector you have the right to demand that they furnish proof of their legal right to collect as well as an accounting of the amount they say you owe. This process is called debt validation and is a powerful credit repair tool, but must be done within 30 days of receiving a collection letter.

Collections Beyond the Statutes of Limitation

When a collection has aged beyond the statute of limitation the collector no longer has the right to enforce the collection through the court system. This is important credit repair knowledge and means that the collector cannot sue you, or if they attempt to do so you only need to assert your statute of limitation defense and the case will be dismissed; a positive credit repair outcome. Statutes of limitation are almost always far less than the reporting period limits on your credit report and should be researched prior to responding to any collector.

Expired Collections

A significant percentage of all active collections are for accounts that are not only beyond the statute of limitation, but beyond the reporting period as well. And yet collectors continue to pursue payment. And guess what? Many people pay due to a simple lack of information. Don’t be an accidental victim. It may also come in handy to know that reporting period limits cannot legally be reset by the transfer of a debt from one collector to another. Do your credit repair homework before acting on any collection.