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Debt Collection

Debt collection is a legal and necessary practice when products or services have already been provided but the consumer has not paid for them. Some companies use collection agencies to pursue payments on debts owed by persons or businesses.

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What does COD stand for for teens?

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Asked by Wiki User

COD stands for "Call of Duty," a popular video game series known for its first-person shooter gameplay that is popular among teenagers.

What are the features of reports compiled by general mercantile agencies?

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Asked by EncyofUSIndustries

Reports by general mercantile agencies typically include information on a company's financial health, creditworthiness, payment history, legal judgments, and industry reputation. They may also provide details on ownership structure, management team, and any major business events or news. These reports are used by businesses to assess the risks associated with entering into a commercial relationship with another company.

Does an estate have to place an ad in the newspaper to notify creditors of the death in South Carolina if the person was a legal resident of Florida when there are no asset other than a 401K?

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Asked by Wiki User

In South Carolina, if there are no assets in the deceased person's estate other than a 401K and the person was a legal resident of Florida at the time of death, it may not be necessary to place an ad in the newspaper to notify creditors. However, it is advisable to consult with an attorney familiar with the laws of both South Carolina and Florida to ensure all necessary steps are taken to handle the estate appropriately.

Are debtor an asset?

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Asked by Wiki User

No, debtors are not assets; they are liabilities. Debtor refers to someone who owes money to another party. In accounting, debtors are recorded as accounts receivable, which is an asset. However, from the perspective of the debtor themselves, the amount they owe represents a liability, not an asset. Assets are resources owned by a person or company that have economic value and can be used to generate future benefits. Liabilities, on the other hand, represent obligations or debts owed by a person or company to others.

What is the best description of a debit card?

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Asked by Wiki User

A debit card is like a financial multitool in your wallet. It's your personal key to the kingdom of purchases and transactions. With a debit card, you're not carrying cash – it's your digital sidekick for buying groceries, grabbing a coffee, or indulging in a little retail therapy. It's a magic pass that lets you access your bank account effortlessly, deducting the amount you spend directly. Think of it as your financial Swiss Army knife, simplifying payments and providing the freedom to shop and spend securely, all with a simple swipe or a chip insert. It's the bridge between your wallet and the digital world, making everyday transactions a breeze.

What is collect payment mean?

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Asked by Wiki User

Collection payment refers to the process of receiving payment from customers or clients for goods or services provided. This can include various methods of payment, such as cash, checks, credit card transactions, or electronic transfers. It is an important aspect of managing a business's cash flow and ensuring that outstanding invoices are paid promptly

Does my father in laws estate have to pay a collection agency?

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Asked by Wiki User

If your father-in-law had outstanding debts at the time of his death, his estate may be responsible for paying those debts, including any obligations to a collection agency. However, it is important to consult with a probate attorney to determine the specific laws and regulations applicable in your jurisdiction and to understand the particular circumstances of your father-in-law's estate.

If you were given land by your mother in which she still lives could creditors take the land to pay off your debts if you were to die even though she lives there?

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Asked by Wiki User

If you were given land by your mother but she still lives there, creditors generally cannot take the land to pay off your debts in most cases. However, it's important to note that laws may vary depending on the jurisdiction. It is recommended that you consult with a legal professional to fully understand the laws and protections in your specific situation.

Collection agency laws?

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Asked by Wiki User

Collection agency laws vary by country and even within different regions or jurisdictions. Generally, these laws outline the rules and regulations that collection agencies must follow when attempting to collect debts from individuals or businesses. These laws often dictate practices such as permissible communication methods, disclosure requirements, prohibited tactics, and the rights of debtors. It is important for both debtors and collection agencies to be familiar with and adhere to the specific laws applicable to their jurisdiction.

Is there a governing body for bailiffs AND DEBT COLLECTORS?

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Asked by Wiki User

In most countries, bailiffs and debt collectors are regulated by separate governing bodies. Bailiffs are typically regulated by the courts or a ministry of justice, while debt collectors are regulated by financial regulatory bodies or consumer protection agencies. However, regulations can vary by jurisdiction, so it's important to consult the specific laws and regulations applicable to your country.

Can highway patrol pull you over when your not on a highway?

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Asked by Wiki User

yes the border patrol are federal agents with the tasks of keeping the peace.

Is an IQ test of 103 out of 43 questions normal for a 17-year-old?

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Asked by Evelynruby88

well ia am a 13yr old and my IQ is 115 out of 43 questions!!

Why are most college students in so much debt?

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Asked by DeShaunda

we have not been informed about debt, until it is to late. It should be taught in the 11th and 12th grade, and as a freshman in college.

Can an employer refuse to hire someone with wage garnishments?

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Asked by Wiki User

From U.S. Department of Labor website:

The wage garnishment provisions of the Consumer Credit Protection Act (CCPA) protect employees from discharge by their employers because their wages have been garnished for any one debt, and it limits the amount of an employee's earnings that may be garnished in any one week. CCPA also applies to all employers and individuals who receive earnings for personal services (including wages, salaries, commissions, bonuses and income from a pension or retirement program, but ordinarily not including tips).

Can collection agencies charge interest?

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Asked by Wiki User

Yes, unfortunately they can charge interest and other fees if they have purchased the debt from your original creditor. However, it is always a good possibility to negotiate collections for a fraction of what you owe (including extra fees).

Can a collection agency put the same item on your credit report that has already been reported by the original creditor?

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Asked by Wiki User

Yes. The original creditor more than likely put the item on first, then sold the account to a collection company who after unsuccessfully trying to collect the debt reported the item to the credit bureaus. So to you it was the same account or item but now the debt has transferred to a new company.

Can I stop bill collectors calling my home for trying to collect a relative debt?

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Asked by Wiki User

If you are in the U.S. there are laws to protect you against this type of collection but first be sure that you are not a co-signer or in some way named on the debt. Write a letter keeping it professional in language but clear that you are not to be contacted again. Send it in a way that you are able to prove delivery such as registered and return requested or Fedex with signature required. When they receive the letter they are required to stop. Refer to the Fair

Debt Collection Practices Act at http://www.usdoj.gov

How many times per week can collector call?

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Asked by Wiki User

Not many - so get some friends to help. Answer the phone and request the collector to "not call you again" and have 3 or more witnesses on extension phones. You can't legally record it so the witness can testify you ask for no more calls.

What should you have for your party?

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Asked by Wiki User

you should just invite your closest friends and family who you no you will have a good time with and just enjoy yourself the day is about you.

How many times a day can a collection agency call in NJ?

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Asked by Wiki User

U.S., for a collection agency, they can call you until you tell them that they should never contact you again by phone. Legally, after you tell them to not call you again, they cannot. You may have tell them again a time or two, but in this country, your rights are your rights. They are still going to keep it on your credit report, and probably send bills in the mail.

Can a collector call on Sunday?

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Asked by Wiki User

Yes. A collector can call 7 days a week providing they follow the state's law for leaving messages or communicating with the debtor. Calls are allowed from 8am to 9pm local time.

Does paying off collection accounts help your cred?

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Asked by Wiki User

  • Why payoff collections when you have a bona-fide chance in getting the collection deleted by disputing it with the bureaus that are reporting it, as per "The Fair Credit Reporting Act". The original creditor already wrote it off as a loss on their taxes anyway and in most cases sold the debt to a collection agency for 15 to 20 percent.
  • Last resort is to settle on the debt. Make sure you write a restrictive endorsement on the front of the check:"By cashing this check Payee agrees to accept this check in full payment of the account as agreed and agrees to remove all derogatory information from Remitter's Credit Reports."
  • Now you have a canceled photo of your check in your bank statement as proof incase the bureaus don't adjust your report accordingly. Also make sure to mention your account number in the memo section.
  • I agree with Bob in the next answer--since I am a mortgage loan officer--I would be recommending the same. Pay the collection at the closing of the purchase/refinance of the home--not right before. Your scores will not improve for a good 2 months or more as you just gave a bad account a newer date. I like to call it "new history". Now if you are just cleaning up your credit and not applying for any type of loan for at least 2 months, then by all means -- pay the amt due or settle on an amount. Either way get it in writing and keep your originals--for a LONG TIME. Send copies when sending the payoff/settlement. Act as a "collector" would, and call consistently when you are waiting for confirmation via fax with the original being mailed to you until you get it. Make sure you have names and extensions when you try to re-reach the person you talked to as you will more than likely end up talking to someone else.
  • The reason for this is because, among other factors used to determine a credit score, the "date last active" will change on these collection accounts once they have been paid. It simply means the date the account (regardless of type) had any activity on it, whether it be a credit, debit, transfer, etc. Pretty straight-forward.
  • So let me try to explain: Let's say you have a collection from a long-forgotten medical bill (probably the most common collection), with a last active date of 08/99, with a $500 balance. Because this is such an old, inactive collection, it's effect on your credit score has been greatly diluted by more recently active credit (such as your current mortgage, car loan, active credit cards, etc.), and is likely only lowering your score slightly. If you were to pay that collection off in an attempt to gain points, your efforts will have an opposite effect in the short-term. By paying off the collection, you will bring the last active date of the collection to the current month (now would be 10/03), and although it will now reflect a $0 balance, the fact that you have a recently active collection on your credit report is more derogatory than an old collection with a balance.
  • My advice to you is, if you are applying for a mortgage or other large loan, do NOT pay off collections before hand! Usually, lenders will require these debts to be paid at CLOSING, and this is highly recommended.
  • Now, after about 6 months, your scores will have recovered (depending on the number of collections you had to pay off), and in the long term, will be much higher than had you left the unpaid collections on your credit report. It's just the initial hit that hurts.
  • I appreciate the above. But I want to emphasis it highlights that you *will* have to pay off the old debt anyway. Moreover, as noted that craziness in official scoring is true for maybe 6 months. And it is happening in what might be the more junior and mechanical part of the process of actually approving a loan... many more things will actually go into it.
  • So, let's see, if I was a lender, now and 6 months (or even 5+ years)in the future, how trustworthy do you think I would comparatively rate these two, or desire them as customers:

1) He has not made payments on his previous promises. He still owes others money that he doesn't seem able to, or interested in, paying. He expects to pay me with his future wages. Other creditors want to get repaid, and will have a right to an amount that will continue to grow with fees and interest charges, so his past due balances are actually higher than he's telling me. I can require he pay off those old debts, but if he uses my money to pay those off, do I really want to be in the shoes of those he isn't paying now?

2) He seems to have had a tough period and missed payment obligations for some reason, (but that was XX ago / there is an explanation in credit file). Gotta' say s/he really wanted to stay responsible/honorable and worked through it, made good on his promise overall and paid them. He doesn't seem to owe others now, at least not more than he seems able to pay on what he's making....

  • To be certain of how ill informed and absurd some of the above is...when saying that "The original creditor already wrote it off as a loss on their taxes anyway...", well maybe in a way. They wrote it off on their financial books too...they had reported an asset a receivable, (income they already reported and expected to receive), that wasn't real...they paid taxes on that income previously (when they originally made/recorded it)...both their books and tax accounting now get adjusted to show they won't receive it...the tax they get is tax BACK that they paid already on the income they aren't going to receive. You don't really think the IRS gives money back for something else do you?
  • Can paid charges help your credit score. It can increase your credit score by paying off a charge off on your credit report.

UPDATE: In 2007, Fair Isaac agreed with debt collectors that a debtor should not be penalized for paying off old debt accounts. While it is true that renewed account activity could reset the date of last activity on a collection account, it does not change the date of last activity for the original debt. Furthermore, Fair Isaac claims that adjustments have been made in credit scoring that allow for a debtor to pay an old debt without any negative movement in their credit scores.

This settles a decades old argument that paying off an old liability demonstrates financial responsibility. What we do not know is whether the actual change to risk scoring models was made in 2007, or if it is part of the FICO 08 scoring update. Either way, by late 2008 debtors will not be penalized for paying off an old debt account. With this in mind debtors can pay off older accounts without fear of a negative credit score reaction. This is true for lump sum payoffs. Making a series of payments on an old debt is still not advisable. Still though, debtors should focus on newer debts, since older accounts may drop off their credit report before they get a chance to repay them.

Paying off a collection will update the account as more recent which will hurt your credit score, but it will also improve your debt to limit ratio which will increase your credit score. More importantly you can negotiate to remove the credit report listing upon final payment. You can also try to dispute the collection with the credit bureau and this becomes much easier once you have paid off the debt.

It is completely and utterly untrue that writing "this pays this debt in full" on a check is legally binding. Why wouldn't one do that on the first mortgage payment? I can write anything in the memo of a check, it means nothing. Please do not follow that advice. I worked for a bank for over a decade, this is a horrible myth.

Can collection agency sue husband for your debt?

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Asked by Wiki User

Yes, unless you can prove the debt is the express responsibility of the other party. In most cases this would be proven in the form of official divorce papers from the court that specifically address that specific debt, otherwise the spouse is also responsible.

Can a debt collector still try to collect if the original debt has been deleted?

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Asked by Wiki User

Yes they can, just because the debt isn't reporting doesn't mean they won't stop their collection efforts. Send them a C&D letter, that way they can't communicate with you regarding the debt.