Are you receiving calls from an unfamiliar collection company about credit card debt? If so, your debt was likely sold to a third-party collection agency or debt buyer. This occurs when an account becomes 180 days past due and credit card companies charge-off your account. They then reclassify it from a performing to a non-performing asset. From here, the credit card company can choose to hire a collection agency to pursue your debt or sell your account to a debt buyer.
Debt buyers often purchase credit card accounts without all of the necessary debtor information. Some collection agencies will simply cast a wide net to try and swindle an individual into accepting a debt as their own. In other cases, debt buyers will do their due diligence to locate a debtor. If a third-party collection agency is contacting you for an old debt, this is probably how they found you.
Credit buyers have the option of purchasing an account with specific debtor details enclosed. When they do, they obtain your name and address listed on your application. Contract details and Fair Debt Collections and Practices Act (FDCPA) restrictions limit the release of other sensitive information.
Many collection agencies use skip tracers to locate debtors. These individuals use traditional and high-tech methods of gathering personal information. They scour phone books, use cell phone records, domain searches, public records, email address finders, and many other tactics to collect and report debtor information back to the collection agency.
Friends and Family
Debt buyers who have trouble contacting you directly often reach out to family and friends. Debt collectors may contact neighbors, coworkers, parents, and relatives in their ultimate pursuit of repayment. Such practices are restricted under the FDCPA but are still common means of collection for many companies.
Collection agencies in alignment with credit bureaus have access to all of your sensitive information. Even companies that lack association can pay a fee to have your name added to the credit bureau’s locate list. Being on the locate list means that your information could be forwarded to the collection agency if you were to ever apply for credit.
Once a debt collector finds you, they will stop at nothing to get you to pay up. Rather than ignore the endless calls and emails, get in contact with an experienced Illinois Debt Settlement Attorney. Heather Benveniste with Benveniste Law Offices spent years of her career as a debt collection attorney. She now uses her inside knowledge of their practices and tactics to free afflicted debtors from the grips of consumer debt. Contact us today for a free case evaluation.