Daily Tea Sips's video: LIVE - Why You Should Never Pay A Collection Agency Above 700 Credit Score Series

Why You Should Never Pay Collection Agencies or Debt Collectors Here is what happens when your account is placed into collections. Now, I'm not referring to in-house collections. I am referring to when your account has been sold to debt collector for collections by the company that initially extended credit to you. You default on paying. At some point, the institution attempts to collect the debt. When they are unable to get you to pay they charge the debt off then sell it for pennies on the dollar to a debt collection agency. Once the institution has charged the debt off they can then claim the debt as a loss on their taxes. You never signed a contract with the debt collector so the burden of proof is on them to prove you owe the debt. Also, when the debt collectors contact you via phone they always say they are calling on a recorded line. If you confirm any information with them during that call then they have you on the recording saying the debt belongs to you. Here is what I would say: if you have a debt for someone at this address use the name and address you have on file for that debt and send the signed contract proving the debt belongs to the person you are trying to contact. Until then I am unable to provide any additional information to you over the phone. Also, you do not know if the debt collector contacting you is legitimate. You don't want to agree to pay a debt or confirm information only to find out the debt has not been paid because you paid some scam company. We are not telling you to ignore debt collectors. If you choose to do this it can escalate to wage garnishments. etc. The person contacting trying to collect the debt may not be legit so ALWAYS do a debt validation. What we are saying is to validate the debt. You could be in a situation where your identity was stolen and loans and credit cards were taken out in your name. Again, just let them know whatever information they are looking at to send a letter to the address they have listed. If they have the correct address and I receive the letter I will respond accordingly. If they persist simply say the following: anything you want to discuss must be done in writing. Thank you. Then hang up. Even if you pay a collection debt it will remain on your credit report for 7 years. Statute of Limitations on Debt Collection The law that restricts how long the owner of the debt can go after to you collect the debt is called the statute of limitations. Now the statute of limitations for being able to legally recover on that debt depends on the state in which you reside. I reside in Illinois so the statute of limitations in 3-20 years depending on the type of debt. To find the statute of limitations for your state go to Google and type "statute of limitations on debt collection in (add your state)". I will put this in the description section below. The statue of limitation on debt collection does not apply for government student loans. Non-government student loans, as I discussed in the Above 700 credit score series would apply and it is possible to get non-government student loans removed. Above 700 Credit Series - https://www.youtube.com/playlist?list=PLTxBO_hyj6IqBoj7F95QnIp3qJn3FSHP7 Video 1 - How To Increase Your Credit Score Fast Video 2 - How To Increase Your Credit Score Using The Piggyback Method Video 3 - How To File A Credit Report Dispute Video 4 - How I Increased My Credit Score By 65 Points In 48 Hours Video 5 - These Three Credit Lines Can Help Or Hurt Your Credit Score Video 6 - How To Remove Hard Credit Inquiries From Your Credit Report Video 7 - How To Control Credit Card Debt Video 8 - 8 Tips To Increase Your Credit Score Video 9 - How To Obtain A Second Chance Checking Account Video 10 - Why You Should Never Pay Collection Agencies or Debt Collectors Connect with me on social media: Instagram - https://www.instagram.com/dailyteasips/ Facebook- https://www.facebook.com/dailyteasips/ Twitter - https://twitter.com/dailyteasips Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. No copyright infringement intended.