Crazy Credit Repair Collection Facts
Many Collections are Not Valid
Many people in credit repair programs face some level of collection activity. Between phone calls, dunning letters, and the often cryptic list of debts that appear on credit reports, it can be problematic to identify legitimate debts and determine the best course of action.
A Unique Breed of Collector
There is a unique breed of collector that specializes in buying and dunning ancient collection accounts; debts over seven years old. These accounts are unattractive to first level collectors as they are beyond the statute of limitation for enforcing through the courts. They are also beyond the credit bureau reporting period limit.
Profiting From Ignorance
Of interest to anyone in a credit repair program, the age of the debt means that legal action can be neutralized by the statute of limitation defense, and any threat of reporting to the credit bureaus is not valid. The lack of legal leverage does not stop these collectors from vigorously practicing their craft. In fact, these last-chance collectors represent the most profitable part of the collection industry!
Credit Repair Education Pays
What is their secret? They prey on consumers who do not know their rights. If you are contacted by a collector about an ancient debt, just examine the statute of limitation, check out the reporting period limit, and send the collector a cease communication letter. They will go away forever. There are many great credit repair resources online. A little education goes a long way!
Another Common Quirk
While a bit of credit repair education can arm you with the knowledge you need to vanquish these collectors of ancient debt, there is another type of collection account that can be eliminated quickly with a dispute letter, if you know what to look for…
Compliance Failures
A significant percentage of all collections on credit reports fall into a very special category. These accounts are everywhere. Left alone they can linger for years, in some cases decades. They have the power to depress the credit scores of their unfortunate victims, often dramatically. And they should not be reporting.
Failure to Vacate
Collectors buy and sell debt. Over the last decade this practice has become commonplace, and much more frequent. Many collectors will sell an account in as little as six months if it does not pay. When an account is sold the collector is supposed to vacate all credit bureau reporting. Sadly, this often does not happen. And yet a little credit repair could eliminate the offending account completely.
The Credit Repair Solution
If you have collections on your credit report, it is fairly certain that you are a victim of this type of defunct account. Credit repair is the answer. The first and most obvious indication is the presence of more than one collection account for the same debt. If you examine your credit report and find several collections for the same debt, all but one is erroneous. And the last one may be too!
The Value of Vigilance
Given the speed at which collectors churn their portfolio these days. It is quite feasible that even the most recent collection on your report is in error. Once you remove all of the duplicates, examine the last, most recent, account. It may be legitimate, but if the reporting date is over six months, or if you have been contacted by a different collector since the reporting date, it may be a candidate for credit repair as well. Good luck!
Copyright © 2010 James W. Kemish. All Content. All Rights Reserved.
Questions and Answers
The SOL starts on the date your last payment was scheduled but not received. In some cases, your creditor may try to get a hold of you in respect to the debt. If you really don't respond, the SOL may be changed to the date of their very last attempt to get in touch with you. That's why you need to stay on top of these things.
It is absolutely essential for anyone attempting credit repair to know the statues of limitation for reporting of derogatory information as it applies to the credit bureaus. Credit repair expert Jim Kemish offers some insight on specific statute of limitation information that may surprise you.
The vast majority of consumers don't know much about the laws of credit, especially those that govern when and how long a creditor can sue. Following is a brief overview. Knowing your rights is one of the first steps you should take when trying to do credit report repair on your own. Credit Report Repair: Why It's Important to Know Your State's Statute of Limitations You just might find that there are some items on your
Getting contacted by a collector is never a good thing. But there are laws that govern the behavior of collectors, and there are steps you can take to control the situation. Credit repair expert Jim Kemish discusses the rights and remedies that anyone facing a collector should know.
Persons wishing to be financially protected can utilize this very same system to their finances and debt in order to get their finance back in line. To approach your monetary scenario holistically you ought to take into account at minimum the subsequent: ? What are my debts and how much of this debt is secured and unsecured? What are my goals for my personal potential? What is a fair way to reach these ambitions and lessen my credit card debt? How can I make a healthful w...
Registering a company is no longer a time-consuming and tedious business. With the new online company formation services available you will be able to register your new company in just a few clicks of a button.
Establishing large credit card debts in college develops poor money management skills. Also, high interest rates keep students in debt well after school.
If you're planning a holiday with your family, don't forget to include your credit score with you. Monitoring your credit score while you're away can be a big help. If the thought of thieves running up a huge debt on your credit card scares you, then online monitoring is what you need. Read article to know more.
Lots of people want to know how to clean up their credit report. While there are plenty of agencies out there who will do the work for you for a price, it's also possible to clean up your credit report yourself if you're willing to put in the time and effort.
Your credit score is an important thing when it comes to how lenders, dealers, companies or banks see you. It is what they look at to determine if you are worthy enough to get a loan or even to get that job position you've been longing for.
2012 is upon us and there are unprecedented credit repair opportunities available in the New Year ahead.
Sending dispute letters is a central part of the credit repair process, and here are a few ways to the make it super successful.
Ouch! Getting a collection letter is uncomfortable, but it may also present a number of valid credit repair opportunities worth pursuing.
Living beyond your means? If you want to succeed at credit repair you need to balance your budget. Here are some sweet ideas about financial equanimity.
Here are a few turbo charged credit repair tips that will accelerate your credit recovery. Pick the ones you want and put them to work today.
Discuss this Article
