The law has added a new wrinkle to removing debt collections!
Junk debt buyers, most often known as collection companies, deserve the bad rap they have earned. And today, with the help of the FTC, the Consumer Financial Protection Board and state Attorney Generals the power to remove collections has improved.
When the original creditor writes off the debt, it is often sold to “junk debt buyers”. They typically receive an Excel spreadsheet of the portfolio of paper they are buying. And they in turn file a collection on your credit report without ever consulting you first. Of course this immediately drives down your credit rating.
Under both the Fair Credit Reporting Act and the Fair Debt Collections Practices Act, they must have documentation to prove what they have reported. And this documentation must be made available to you at your request. But if all they have is an Excel spreadsheet and usually a print out of what the debt was, then how can they clearly show that you owed the debt and further that you now owe them this alleged debt.
In other words, they have to have a copy of that original contract (with your signature) and another contract showing that they now have the right to collect the debt. We have discovered that in approximately 80% of our cases, these junk debt buyers have neither!
Do you need to have your collections removed from your credit, call us first for a Free Consultation. 1-877-800-6029