Credit Collections

[ericwinters]

Anyone ever with to resolve an old apartment debt with success?

 

The company is National Credit Systems.

[+ FrankR]

Anyone ever with to resolve an old apartment debt with success?

Yes, I have helped a few people with this. These agencies buy the bad debt for pennies on the dollar and then try to recover the funds. That is how they make money. They can be mean and threatening - call at the most inconvenient times or even contact your family to embaress you into paying. I could write a book on this.

 

My suggestion:

1. Save 20c for each dollar owed on the original debt. They will try to add all kinds of interest - ignore it; its all a ploy to get more money out of you.

2. Wait until the last 3 days of the month when they are desperate to collect.

3. Offer them 20c on the dollar to be sent via wire but ONLY if they send you a written agreement BEFORE you send the money, that they are accepting the 20c on the dollar as full payment for the entire outstanding debt.

4. Keep that agreement until the day you die - as sure as I draw breath they will come back later and try to collect more. They cannot be trusted.

5. If they won't take it this month, tell them you are broke and can't pay the full amount. Try again next month by calling them the last 3 days of the month.

6. Never give them electronic access to your bank account - once they have it they will keep pulling money. Only pay via wire - never give them your account number. Ever.

 

Keep in mind that the statute of limitations on the period that a debt can sue a borrower - it is 6 years in most States (check yours). If the debt is more than six years old, they can't sue even if they threaten to. Always consult with legal council if they threaten to sue. ?

 

 

[thedanNYC]

Always consult with legal council if they threaten to sue.

 

Consider doing this, even if for a small fee through one of the online legal service platforms, before taking any of the other steps suggested above (including answering the debt collector's calls). Acknowledging the debt and making a payment offer are two of the many actions that can restart the statute of limitations. So proceed with caution.

[desertguy1954]

I still get a notice sometimes from a collection agency on an old debt. The first time i received one I almost took their offer. Then I read the full letter. Because of the age of the debt, they could not report it to the credit bureaus or garnish any wages. So, I threw that letter away and any ones I have since received. So, be sure and read the entire letter. You may not have to do anything.

[+ bashful]

Keep in mind that the statute of limitations on the period that a debt can sue a borrower - it is 6 years in most States (check yours). If the debt is more than six years old, they can't sue even if they threaten to. Always consult with legal council if they threaten to sue.

 

Be careful. I have heard, but cannot verify, but if any payment is sent, it can restart the clock. As @FrankR says, consult with legal council.

[sincitymix]

Be careful. I have heard, but cannot verify, but if any payment is sent, it can restart the clock. As @FrankR says, consult with legal council.

 

Very true, and watch out for shenanigans. A friend owed debt from a long time ago. The collections sent her a letter saying they couldn’t sue etc. but then took her to court, she hit a lawyer, debt agency said she made a payment before the limits expired, when pressed for proof they sent a faked statement showing a payment from a bank she used to use.. from an account that was closed for years way before the listed payment. Nothing added up. Lawyer said I’ll see you in court and we’re going for damages.. the collection agency immediately dropped the suit and cancelled the debt etc.

[Guest]

@FrankR , if @ericwinters settles for 20¢ on the dollar, would he expect a 1099?

[craigville beach]

@FrankR , if @ericwinters settles for 20¢ on the dollar, would he expect a 1099?

 

possibly

[craigville beach]

Be careful. I have heard, but cannot verify, but if any payment is sent, it can restart the clock. As @FrankR says, consult with legal council.

 

this is true, you don't want to do anything to reset the clock

[+ FrankR]

@FrankR , if @ericwinters settles for 20¢ on the dollar, would he expect a 1099?

If they have their act together, they should send a 1099-C. The remaining 80c on the dollar in my example would be considered taxable when they cancel the debt.

[Guest]

If they have their act together, they should send a 1099-C. The remaining 80c on the dollar in my example would be considered taxable when they cancel the debt.

And may elevate the rest of his income into a higher tax bracket

[+ FrankR]

And may elevate the rest of his income into a higher tax bracket

Uncle Sam will want his cut... ??‍♂️