Credit Repair Tip 11

I hate collection agencies

Collection agencies are at the bottom of the barrel when it comes down to business.  The only thing they care about is cold, hard cash.  They don’t care if you’ve just lost your job, your spouse, or your health.  Their job is to bleed you of money any way they can.  However, you can stop them in their tracks by applying your newfound knowledge and the law.  There are several tactics you can use in standing up to a collection agency, including saying the right words, sending a detailed letter, or quoting the law.

What is a collection agency?

Collection agencies are third-party companies that use aggressive tactics to collect outstanding debts from consumers.  Old debts are either assigned or sold to the collector by a creditor.  If the debt is assigned to a collection agency and the collector obtains the money, a percentage of it is kept by the agency, while the remainder goes to the creditor.  If the collector buys debts for 10 cents on the dollar, they own it, and they will want 100% from you.​​​​​​​

Why was my account turned over to a collection agency?

  • Your debt is over 180 days late.
  • The creditor could not locate or contact you.

These are the primary reasons why a creditor or a credit card company would assign or sell your debt to a collection agency.​​​​​​​