Collection business are companies similar to any other, most buy debt from the initial creditor for a fraction of the initial quantity owed and then try and gather as much as possible from you.
If you had an unpaid credit card balance of $2000, a collection company might purchase it from the creditor for $400 and will attempt to collect the complete quantity from you. This is often the reason for the continuous harassment from debt collector.
It is important to understand that you have personal rights in reference to how debt collection agency interact with you in reference to any debt. They must follow these laws and you also can sue them if they do not.
When you advise them to by putting it in composing, a collection agency by law can not call you prior to 8.00 am and after 9.00 pm and need to also stop calling you. It is also possible to remove collection accounts from your credit report.
In order to do this it depends on the stage of the collection account, if its older than 7 years then you can have it eliminated with a basic letter to the credit bureaus. You can negotiate a lower payment in exchange for them deleting it from your report if its an account where the collector is still calling you.
It is extremely important that you get this in composing PRIOR TO you pay them any loan. Bear in mind that they purchased the account for less and this will also allow them to settle the account for less than what you originally owe on it.
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