“I am responsible and I will pay what I owe”
“I need to pay the creditor but I am not going to pay the collector”
“How can I not pay the original creditor when I owe them money”
First of all, if the consumer cannot pay these days, there is most likely a hardship situation…….. unemployment, medical emergency, divorce, death. We should not have overextended ourselves in credit anyway (but we are about to change that for the future) and we have learned a big lesson. We had great credit scores and bills were current. Then the unexpected happens. Bad goes to worse and the collection agencies want money.
Here is the justification. It is a paradigm shift. Plus we have the FDCPA and the FCRA on the consumers side.
The OC has a balance sheet and they have profit and loss. Credit card holders who cannot pay are on the balance sheet as a loss. The OC takes a “charge off” and puts it on your credit report. They get a tax break as a business from this charge off. Then there is the IRS who gives them so much loss as a huge corporation. THEN the OC sells the worthless paper to JDBs for pennies. The OC made a profit from you and have been paid by you – the consumer – and it is business as usual.
Now the collection agency (JDB) has a list with name, number and balance on a spreadsheet. They have not paid for the balance of the account. So what gives them the right to collect the balance when they DO NOT OWN the balance. There is no balance for the OC so why is there a balance for the collection agency. The collection agencies tell the consumer that they were assigned to collect for the OC. Not true. The debt collector is counting on the consumer ignorance that we do not know what the rights are when it comes to “assignment” of an alleged debt.
The objective of the JDB / collection agencies is to get you to pay them. Instant profit for them. Do you take their word for it that you owe them money? They want you to set up payment arrangements, send in a post dated check, make a settlement for a discount on the balance, or pay in full. They are bullies trying to take your lunch money at recess – remember those types? Did you know that you can sue the collection agency?
DO NOT PAY!
Once you pay them and they receive payment – you are acknowledging that you do owe them money. It is almost impossible to fight them and dispute it once they receive your payment but it can be done.
This can be overwhelming dealing with collection agencies. Do not procrastinate and ignore them. They need to prove the alleged debt to the consumer on paper. Contact us for a free consultation to see if we can make these collectors go away forever.
We do our best (and there is no guarantee because each consumer has their own scenario and) 99% of the collection agencies fade out of the consumers life once we take action against them.
NEXT LEVEL CREDIT
“Taking Your Credit to the Next Level”