Archive for the ‘Debt Collectors’ Category

Will paying off debts older than 3 years hurt your credit score?

Posted on: December 19th, 2012 by Kenneth Long No Comments

(Ask a Question) I’ve been told that, paying off 2 small debts I have (one for $70, the other for $200) These are bills that I didn’t know about & have gone into collections (obviously, I rarely check my credit report) & just found out about them.
I was about to call up the collection agencies & pay them off, when my friend informed me not to, that it would only serve to diminish my credit score.

This seems contrary to logic (but then so does credit, to me). Either way, is my friend right? Am I better off, just not paying those two past due bills, since they’re both older than 3 years? (more…)

Will paying an $88 medical bill hurt my credit?

Posted on: December 1st, 2012 by Kenneth Long 2 Comments

(Christina) I am in the process of buying a house and we are closing in 3 weeks. My lender asked me to explain two negatives on my credit, one being an $88 medical bill from 2009 that I was unaware of. I did not realize this was for underwriting purposes only, so yesterday I called the collector to find out about the account, and paid it in full thinking it would help. My lender then told me this would “dramatically” impact my credit in a negative way. After reading about the “Fair Isaac” decision on no penalty for paying off a debt collection in full, I am doubting what my lender told me. With three weeks until closing, how quickly might this be reported to my credit, and what impact might it have on my closing? We have been approved for FHA and losing this house over paying an $88 debt will be crushing for us. Thank you. (more…)

When a debt is sold can the new company get an additional 7 years to report on my credit report?

Posted on: April 26th, 2012 by Kenneth Long No Comments

(Barbara from South Carolina) I have old accounts that have been transferred to or sold to other lenders. The date of last activity exceeds the 7 year FTC law. Does the new company get an additional 7 years to report on my credit report? If not, what do I do to resolve this? (more…)

Is there a maximum time limit a creditor can attempt to collect a debt?

Posted on: January 16th, 2012 by Kenneth Long No Comments

(Gary from Indiana) Is there a maximum time limit a creditor can attempt to collect a debt? (more…)

Telecom Shows Charge Off for Line Never Installed

Posted on: November 10th, 2010 by Kenneth Long No Comments

(Andy from New York) Last year I tried to initiate phone service with a major company. They were entirely incompetent to the extent that they never even managed to install the line. I never made or received a call. I never signed a contract, and never received a bill from them.

I have just learned that they marked a “charge off” on my credit report for $350. I plan to contact them to see if it can simply be removed, but do not trust them. If they refuse, what is my next step? Do I have grounds for a lawsuit?

Many thanks,

Andy

(more…)

Fair Debt Collection Practices Act (FDCPA)

Posted on: October 29th, 2008 by Kenneth Long 3 Comments

This is a federal act enacted in 1977 with the goal of preventing abuses by third-party debt collection agencies. These abuses were believed to be one of the main causes of the increase in bankruptcies filed at the time. (more…)

Ellis Crosby Loses $1.3 Million Judgment

Posted on: April 14th, 2008 by Kenneth Long 1 Comment

On April 7, 2008 Florida Attorney General Bill McCollum announced a judgment of $1.3 million to be paid by a debt collector that violated collection laws. Ellis Crosby & Associates, including the owner Ted Ellis Crosby himself, engaged in willful violations of Florida’s Consumer Collections Practices Act and Deceptive and Unfair Business Practices Act. (more…)

Debt Collectors: Know What They Pay

Posted on: January 21st, 2008 by Kenneth Long No Comments

Have you ever wondered how much debt collectors paid for your debt? Knowing their investment in the debt can help you know what they might be willing to settle for. The answer might surprise you! (more…)

National Action Financial Services Penalized

Posted on: December 19th, 2007 by Kenneth Long 6 Comments

New York Attorney General Andrew Cuomo successfully settled with a debt collector accused of abusing debtors. National Action Financial Services (NAFS) of Williamsville, NY has agreed to pay $85,000 in penalties and costs. (more…)

Credit Card Charge-offs Up 20 Percent

Posted on: December 5th, 2007 by Kenneth Long No Comments

According to Collections & Credit Risk, credit card charge-offs rose 20% in the third quarter of 2007 over the same period in 2006. Bank of America, Chase, American Express and Citigroup set the pace with a combined $5.57 billion in charge-offs for the three months ending September, 2007.

This is less than the second quarter’s increase of 22%. Here is how the individual issuers fared. (more…)

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