Collection companies are organisations much like other, most buy unpaid 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 sometimes the reason for the constant harassment from debt collector.
It is important to understand that you have individual rights in reference to how debt collector interact with you in reference to any debt. If they do not, they must follow these laws and you also have the right to sue them.
A debt collection agency by law can not call you prior to 8.00 am and after 9.00 pm and need to likewise stop calling you once you instruct them to by putting it in writing. It is also possible to eliminate collection accounts from your credit report.
In order to do this it depends upon the stage of the collection account, if its older than 7 years then you can have it gotten rid of with a basic letter zfn processing to the credit bureaus. If its an account where the collector is still calling you, you can negotiate a lower payment in exchange for them deleting it from your report.
It is extremely important that you get this in composing PRIOR TO you pay them any loan. Bear in mind that they bought 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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