Half Truths

The following was an email from Bottomline Secrets:

The Latest Scams & Rip-Offs:
Self-Defense Strategies

O verzealous debt collectors, phony insurance salespeople and greedy stockbrokers urging customers to put their homes at risk are among the latest rip-offs to watch out for…

“ZOMBIE” DEBT
Kelly Rote
Money Management Int’l

Beware of collection agencies trying to collect “zombie” debt — unpaid consumer bills that creditors already have written off as losses. Debt collectors buy this charged-off debt for just pennies on the dollar and then aggressively squeeze consumers to pay it.

Self-defense: If a collector contacts you about a debt that you don’t recognize, don’t provide any information.

Insist on proof of the debt — the original credit agreement and billing statements.

If you’re convinced that you do owe the money and your state’s statute of limitations on the debt has not expired, consider settling with the agency for a percentage of the amount owed. State statutes of limitations are listed at www.creditinfocenter.com (click on “Rebuild/Repair”).

Also review your credit reports from Experian (888-397-3742, www.experian.com), Equifax (800-685-1111, www.equifax.com) and TransUnion (800-916-8800, www.transunion.com). If a zombie collector has reported the debt delinquency to the credit bureaus after ignoring your request for proof, it is in violation of the Fair Debt Collection Practices Act. File a complaint with the Federal Trade Commission, and notify each credit bureau.

Kelly Rote is national spokesperson for Money Management International, a provider of nationwide consumer credit counseling based in Houston. www.moneymanagement.org

Commnets:

Sounds like good advice, doesn’t it?

Some additional facts: Credit agreements and billing statements are not proof of debt. They are proof a an agreement (with someone, possibly) and proof of an account.

In addition, pursuant to a recent appeals court decision, none of the FDCPA applies to attorneys. They have been deemed expempt or above the law. So, these collection agencies can ignore the law, hire an attorney, and sue you. Then, they have the judge, not you, determine if you owe the debt or not.

Guess who wins?

Remember, judges are just attorneys that wear dresses at work.

Eliminate Credit Card Debt