People with credit scores that prevent anyone but their mom from lending them money are suddenly receiving offers that allow them to have a credit card — on the condition that they pay back part of an old debt that they are no longer legally obligated to pay. [More]
No one likes to be contacted by a debt collector. Those who do the job know this better than anyone, and come prepared to get you to acknowledge them whether you’d like to or not. Some in the profession have a reputation for crossing legal and moral lines when attempting to shake you down, so it’s best to know how to operate if you come in contact with a collector. [More]
Melinda has an MBA from Kaplan University, and has enough business sense to know that she shouldn’t have to pay debts that aren’t hers in the first place. The for-profit college, part of the Washington Post Company, has decided that she owes them more than $3,000 even though her tuition was long ago paid with federal financial aid. No one can show her a detailed breakdown of the bill, or explain why no one noticed that she owed the money until months after graduation. Update: Kaplan has since resolved Melinda’s problem. [More]
Curt says his roommate can’t shake a pushy debt collector who won’t get it through his head that he mixed up his identity with some guy who owes AT&T for DSL service. He contacted AT&T but the company seems unwilling/unable to call off the dogs. [More]
S. writes that in 2008, she owed a lot of money–about $8,000–to her dentist. She worked out a payment plan with the office, and asked them to auto-bill her credit card every month. They frequently forgot to bill her, but she wasn’t too concerned about the situation. At least, until a debt collector called her, saying that the dentist had sold her balance to them. The dentist’s office claims that this is a mistake. Now both entities want S.’s money, and she’s not sure who she should pay. [More]
Hey, um, “Zoran,” if you owe money to Bank of America, can you give them a call because they seem to think you live at reader Kimber’s house and they are just not willing to accept that you don’t. Kimber says they call the house at “all hours of the day, during meal times and weekends” looking for you. [More]
When a Florida man suffered a heart attack, he needed to leave his job. Between everyday expenses and medical bills, he fell behind on his mortgage and other bills, and debt collectors began calling. And calling. And calling. Eventually, a lawsuit alleges, the stress from the harassing and abusive phone calls led to the man’s death. Frivolous lawsuit? Maybe not.
The Better Business Bureau has released a warning to be aware of scammers calling to threaten people with arrest “within the hour” for defaulting on payday loans. What makes them stand out from normal debt collecting scammers is these callers have huge amounts of personal info on their victims, including Social Security and drivers license numbers; old bank account numbers; names of employers, relatives, and friends; and home addresses.
“Litigant Alert” from WebRecon promises to help debt collection companies ferret out “overly-litigious debtors” with “a history of suing collection agencies.” It’s basically a Do Not Call list of troublemakers who had the nerve to fight aggressive collection practices with the law. Debt collectors are apparently willing to pay $1,595 to figure out who they should leave alone.
Getting into debt is easy. Winding up in default is easier yet; all you have to do is not pay your bills for several months! So how do you deal when the lender doesn’t want to wait around for you any longer and has moved on to more drastic action? Here’s three ways, only two of which are advisable.
Who is responsible when dead people owe money? The New York Times says that the law varies but, “generally survivors are not required to pay a dead relative’s bills from their own assets.” That doesn’t mean they’re going to tell you that when they come calling about an unpaid bill.
Apparently the answer to that question is “yes.” CNN is reporting that several states have outsourced bounced check collections to a company that will track you down — even for minor accidental bounced checks — and make you take their personal finance class. By the way, the class costs $160.
The nation’s economic woes make debt collection a topic du jour, but while there are some good bits mixed into the Washington Post’s article, “When Debt Collectors Disrupt Dinner,” it probably should have been titled “What Debt Collectors Would Like You To Say And Do When They Call About The Credit Card.” Read it with a shaker of salt. Read on for the good, the bad, and the lazy reporting, plus what you should actually to protect and exercise your rights as a debtor…
There are lots of good ways to escalate your complaints. Going to the store, dousing yourself with lighter fluid and setting yourself on fire is not one of them. Unfortunately, that’s exactly what one Newark, NJ man did after becoming frustrated with the amount of late payment notices and collection calls he was receiving from Rent-A-Center.
How A Forgotten Blockbuster Video Caused A 2 1/2 Year Battle With Discover Card And Collection Agencies
“Universal Default” is when your credit card company adjusts the terms of your loan because you “defaulted” with another company. In reader P.’s case the “default” was a Blockbuster video that his friend forgot to return. Discover Card took this opportunity to double P.’s interest rate. When he tried to fight it by closing his account, it launched him into a 2 1/2 year legal battle with Discover, a collection agency, and now the credit bureaus.
Some debt collectors are mighty persistent.
Indiana broke its own record for computer security breaches last month, when a server containing personal data on 700,000 people was stolen from the offices of Central Collection Bureau, a debt collection agency. The stolen data included names, personal billing information, last known addresses, and social security numbers of people who hold delinquent accounts with a variety of companies, including utilities and hospitals. The company said the server was behind “three locked doors” and “was protected by two passwords, but was not encrypted.”