So in this post, I`ll do some specific things that you should keep in mind if you end up on the phone with a debt collector. In the absence of a legally binding agreement, you are not required to pay the collection office. Even a verbal agreement is considered binding if your answer is recorded. If there is a written contract, you are in most cases required to respect the agreement. However, there are circumstances that give you the right to stop paying. If z.B. debts exceed your state`s statute of limitations, the debt collection company is no longer able to claim repayment, regardless of the agreement reached. The statute of limitations for written contracts can be up to four years in California or up to 15 years in Kentucky. Your state`s attorney general`s office can provide specific information about the statute of limitations for your respective debts.
Sometimes collection companies can change the terms of repayment and ask for more by refusing to accept less. In this case, the collection office breaks the agreement. You can file a complaint with the Federal Trade Commission and your Attorney General`s office. Federal law prohibits collection companies from threatening you, but that doesn`t mean they`re not going to try to use fear to motivate you to pay the full amount. You must be your own advocate when a collection company calls. Even if the debt is yours, you don`t admit it to the Inkasson processor. You can file a complaint with the GFPB or with your Attorney General. Often, mentioning the CFPB or federal legislation such as the FDCPA will communicate your rights to the collection company you know. The CFPB guidelines follow common sense and follow consumer expectations: if a consumer orally accepts recurrent payments and the collection company registers and maintains that consent, the law is respected. Despite the CFPB`s clear directive, which authorizes oral consent for recurrent payments, consumer lawyers continue to sue collection companies for claiming that oral consent is contrary to the law. In the absence of appels court guidelines on this issue, prosecutions against debt collection companies continue, with an uncertain outcome in the courts.
In addition, these complaints undermine the ability of both consumers and collection companies to avail themselves of the GFPB law. Here are some other personal things you shouldn`t provide to collection companies: Often, a collection company may list a default in your credit report if you don`t pay in accordance with a claim. This is a common tactic to promote compensation.