Debt Collectors' Dirty Little Secret

Debt collectors love aged debt.  No, really, they do.  Why?  Because they can buy the debt for about 1% of its face value.  Think about the potential to make 99 times your investment!  Of course, they love aged debt.

Aged debt, or debt that is outside the statute of limitations, can still be collected.  However, the statute of limitations is a complete bar to suit, should a debtor be sued on aged debt.  But, debt collectors buy large tranches of old debt and call, cajole, and threaten debtors in an effort to collect. These debt collectors collect all they can in a tranche, then sell the remaining debt to another debt collector who repeats the cycle.  This explains why debtors often receive calls from more than one debt collector on an old debt.

Debt collectors are most likely to violate the Fair Debt Collection Practices Act (FDCPA) because of the age of the debt and the potential payoff.  As one debt collector put it when explaining why he had an ex-convict to run his collections: "Boy Scouts just don't get the job done."

Here are some do's and don'ts if you receive a collection call on an aged debt:

1. Don't pay the debt;
2. Don't sign any repayment agreement;
3. Get the collector's address;
4. Write to the collector and explicitly tell the collector to stop contacting you;
5. Document each and every call the collector makes to you, particularly to a cell phone, for the purpose of suing the collector for violating the Telephone Consumer Protection Act;
6. Keep all paper communications from the debt collector; and 
7. Make contemporaneous notes of all call contents.

Remember, these folks are looking to make a huge profit at your expense.

www.debt-relief-law.com

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