You may have ignored the unrelenting collection calls for months as you thought of ways to gather the funds to make necessary payments. You may have even acquired a debt collection attorney to negotiate a repayment schedule, but you have yet to make the necessary payments. Such circumstances can result in your debt going into collections which is likely to occur three to six months after you have defaulted on your payments. This can be most damaging not only to your current financial situation, but also your credit report.
Before your debts are ever assigned or sold, your delinquency is reported to the credit bureau and your credit score takes a devastating hit. A low credit score can prevent you from getting a loan, purchasing a car, or even a home. Your debt is likely to be assigned to a collection agency or sold to a debt buyer as a way for the initial lender to get some sort of return while enabling a third-party agency to relentlessly pursue debt payment.
When your debt is assigned, a collection agency is contracted to collect on the amount owed. Being that they are on contract, they will take instruction from the creditors. If they are instructed to collect your debt in full, they will not stop contacting you until they have done so. Accepting anything less would have to be approved by the creditor.
You can also expect collection agencies to move rapidly. Depending on the contract, the collection agency may have agreed to keep 60% of the assigned debt if collected. This is why many collection agencies waste no time locating and contacting you on multiple platforms; getting you to pay your debts is payday for them. This reason alone is why many collection agencies go outside the confinements of the law to collect outstanding debts.
Purchased debt differs from assigned debt because the collection agency that ends up with your debt is in no way connected to the original creditor. They are not on contract and do not take orders from the original creditor. Your debt is simply sold via an electronic file to debt buyers who can decide to either resell your debt or pursue collection.
Collection agencies that purchase debt or “debt buyers” will only purchase the information they see necessary. It is likely that they will not have your account details, a copy of your contract, or payment history. Many debt buyers simply target a vast number of Americans who may be in debt and attempt to convince them that the explained debt is theirs and require immediate payment.
It is important that you learn about your legal options when handling credit and debit card debt. The non-bankruptcy attorneys of Illinois at Benveniste Law Offices can guide you out of debt without the repercussions of bankruptcy. Attorney Heather Benveniste has worked diligently to resolve issues of those being sued for credit card debt and can do the same for you. We will not settle until your debt is resolved on the most favorable of terms. Contact us at 1-800-497-5358 for a free consultation and take the first step toward a debt-free life.