You might say junk debt buyers, or debt scavengers, or things of this nature. We’re not talking about original furnishers of debt. We’re not talking about, you know, a coffee shop down the street that you have a tab with, or, something of that nature. We’re talking about third-party debt collectors, who have purchased debt, 10 cents on the dollar sometimes, from, like, let’s say a big bank. So big bank charges it off, they have insurance to protect them against such things, they write it off on their taxes, or whatever they do, to maintain and keep them in the positive and making money, and they sell it off to a collection agency. This is what I believe, to be a situation where people get caught up, okay. They think the collectors are going to come after them, and, want this money, and they’re going to file suit, or put liens on them, okay, so.
First off, when you pay collector, unless, for certain you have something in writing that you’re going to pay, and they’re going to remove all the negative stuff, the collection off your credit report, it’s not going to help your credit score, or your credit report to pay it. It’s not going to help very much. It’s not going to do very much. There are also statutes of limitations in your state for how long it can be reported, and, they can collect against you, in fact, in the state of California, and that’s why I have my computer open here, it’s against the FDCPA, the Fair Debt Collection Protection Act, different acts, and this is for only third-party collectors, protecting you against third-party collectors.
In California, the third-party collector cannot sue or even threaten to sue you on a debt that you have not made a payment on for more than four years. So that’s why the disputing in that process works well. Disputing to them, to get it off, to remove what shouldn’t be there, and stop them from calling and harassing you, and, it’s very specific. The FDCPA, the Fair Debt Collection Protection Act, has a few things in there that wanted to share with you, to protect you from collectors, okay. So, if they’re calling you home before 8 a.m. or if they’re calling you at home after 9 p.m. your time, that’s a violation, they call you at work more than once, actually, they really shouldn’t call you at work.
I’m pretty sure they’re not supposed to be calling you at work and they shouldn’t be call third parties, like, people you work with, or friends, more than once to try and locate you. So if they’re harassing people, in your neighborhood, calling, and they’re not your spouse, and they’re not married to you, they’re not supposed to be doing that. They’re not supposed to tell anybody that they’re trying to collect a debt from you. I have gotten a call once from a person I worked with a few years ago, and they were trying to, this third-party collector was trying to collect, and they just said it was a personal matter. They’re not allowed to say, hey, we’re trying to collect a debt, we’re trying to get money out of this person, they’re not allowed to do that.
If they do that, that’s a violation and let me tell you, any violation can be, cash in your pocket, it can be a lawsuit, it can be up to 12 months. So let’s say someone makes violation, a collector makes this type of violation, they’re calling you a bunch at your place of work, and you’ve told them, hey, you’re not supposed to be calling them at work, you’re not supposed to be calling me. You can even send a letter. We’ve sent letters for clients to collectors, you know, the cease and desist phone communication, that sort of thing. They’re calling you, that money in your pocket. I mean, you have up to 12 months to sue. You have up to a year to file a claim and you have a lot of laws that protect you, and that’s why I think, paying these people isn’t necessarily the best thing, unless you have something written that says they’re going to take it off your credit report.
It doesn’t help your credit scores very much to pay. It’s not something that I’m saying, hey, don’t pay, I’m saying don’t pay, if they’re not going to produce you the verification, right. All the documents, the original documents, from the original furnisher, the big bank, these collection agencies, debt scavengers, or junk debt buyers, as we like to call them, have gotten from the big bank. In many cases they don’t have the original documents from the original furnishers of the debt. They don’t have the things that they need to do to abide by the rules, the practices of the federal laws, of the laws in each state, and do they have the right to do what they’re doing? That’s what we want, that’s what we ask, that’s what we want to verify.
So before you see, before you start paying, see the proof, see that they are doing what they’re supposed to be doing. They can’t be calling you two, three times in a day, that’s harassment. You need to take back some of this power and understand unless they have the proper documentation, they’re not within the rights of the law. It doesn’t make any sense to pay.