Gather your own records of the debt, if it is yours, including information about the original creditor and your payment history. A collection agency cannot apply a payment to a debt that you say you don’t owe. Debt collection lawsuits are no joke. What’s more, your chances of success increase significantly if you can give a good explanation of why you should be offered a payment plan instead of having to pay back the full balance.
What happens if I don’t pay any debts in debt collection?
If a lawyer represents you and you have told the collector, the collection agency must contact the lawyer. A collector can contact other people to find out your address, home phone number, and place of work, but they can’t usually contact them more than once and can’t tell them that you owe debts. Proof of judgment is available if you have no unexempt assets or income that the collection agency could obtain through a wage attachment if they sue you. In other words, paying from a collection agency may mean that the debt will affect your credit score longer than not paying.
Can you avoid paying collection agencies
It is important to know that even if you pay off a debt, collection in debt collection can affect your credit rating. Some lenders have specific policies that prohibit them from providing loans to anyone with unpaid debts in debt collection. And somehow, at this time, an alarm will sound at your nearest collection agency, telling them that you are losing hope and it is the best time to pursue you. If you are unable to agree with a collection agency, you should contact a lawyer who can provide you with legal advice regarding your situation.
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Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.