Collection companies are organisations just like other, most purchase unpaid debt from the original financial institution for a portion of the original amount owed then attempt and collect as much as possible from you.
For instance, If you had an overdue credit card balance of $2000, a collection company might buy it from the financial institution for $400 and will attempt to collect the total from you. This is often the reason for the continuous harassment from debt collection agency.
It is necessary to understand that you have personal rights in reference to how debt collection agency interact with you in reference to any debt. If they do not, they need to follow these laws and you likewise have the right to sue them.
A collection agency by law can not call you before 8.00 am and after 9.00 pm and should likewise stop calling you as soon as you advise them to by putting it in writing. It is also possible to remove collection accounts from your credit report.
In order to do this it depends on the stage of the collection account, if its older than 7 years then you can have it eliminated with a basic letter to the credit bureaus. You can negotiate a lower payment in exchange for them erasing it from your report if its an account where the collector is still calling you.
It is very important that you get this in composing PRIOR TO you pay them any loan. Remember that they bought the account for less and this will also enable them to settle the represent less than exactly what you initially owe on it.
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