One of the most common questions that I receive from people struggling with their household finances is, How do I stop collection agencies from harassing me? Many of the people asking me about the harassment they are enduring from debt collectors come from divorced individuals. I recently got an email from a divorced lady whose ex-husband had quit paying the bills he agreed to pay in their divorce decree. Her situation is not unique.
She is not alone in being on the receiving end of the financial shenanigans of a former partner. After years of sharing a life and finances together, a scornful Ex can create any number of financial difficulties for you, particularly with jointly opened accounts, and then walk away from the mess.
Don’t assume that a divorce settlement resolves who gets what debt. If a partner fails to pay on that debt, and it is a joint account, you are on the hook. Debtors do not care what the divorce court says, their collection efforts are not governed or limited by a divorce settlement. This is unfortunate, but it is legal. You were the co-signer.
The lady I received an Email from was experiencing this very thing. Six years ago, she had wrangled with debt collectors, and refused to cooperate in paying for a single dime her ex-husband had squandered and left unpaid. As time passed, the collection calls tapered off. Now, over half a decade later, she is getting those same calls again. The debt collectors are now trying to collect almost $9,000 along with interest and fees for the past-due amount.
Upset, she wrote to me. While the letter was long, it consisted of two important questions worth sharing the answers to for any person facing debt collection efforts. The first question is, Why do debt collectors keep calling me for accounts that are ancient?, and, What can I do to stop them?
If you allegedly owe money to a creditor, they may pursue you until they tire of the chase. When this happens, they often sell the rights to collect that debt to a collection agency. While there are state statutes on how long you may be pursued, the start date is based upon when the collection agency purchased your account. To avoid the account exceeding state statutes, collection agencies routinely buy and sell accounts amongst themselves. This process is known as re-aging debt, and can continue indefinitely.
How to stop collections can be difficult. You can do it, but you will probably have to go through the process more than once. How do you do it.
Don’t spend all of your time placing dispute comments on your credit reports. Nobody reads them. If you spend the time to even argue the collection, by placing a comment, you may actually be hurting yourself. It also makes this bad debt stand out on your credit report. Exactly what you don’t want to have happen. How much can you say in your defense when the credit bureaus only give you 100 words to dispute a claim. It just isn’t worth it.
Don’t be afraid to dispute a collection account, but be smart about it. Demand documented proof that the account belongs to you, and any supporting evidence that the collector can legally make attempts to recover the debt. Legally, if they cannot prove the debt is yours, they may not report it to the credit bureaus or continue their attempts to collect. If you know the steps in this process, you can be surprisingly effective in shutting down their efforts. Most collection accounts have been repeatedly bought or sold, and the paperwork can often be sketchy.
Check your state laws. Collection agencies are often contemptuous of the statute of limitations on debt collection, unless you are knowledgeable enough to threaten them with your knowledge of their violation.
Don’t be afraid to issue a “cease & desist” letter. There are numerous state and Federal laws that protect consumers from harassing collection efforts. You may issue a “cease & desist.” Once issued, they may no longer call or contact you about the debt, other than to acknowledge reciept of your letter and their intended actions in response.
Settle the account. This is an option of last resort. If you’ve been worn down, and want the collectors to go away- offer to settle for 10 cents on the dollar, in exchange for having the “negative” permanently deleted from your credit record. Get it in writing, before you send a penny. Don’t trust them, based upon a conversation. Collection agencies are notoriously underhanded, and will say anything to get money out of you.
If you find yourself overwhelmed by the efforts of debt collectors, don’t be afraid to stand up for yourself. They can wreak havoc on your credit, but you can repair that damage. Don’t get frustrated, get help. Often, one of the most helpful steps you can take to restore your credit and stop the collections is to find a reputable credit repair agency to help you. Some of them specialize in disputing debt collections. One that has come to my attention more than once is Over720.com. They have a reputation for aggressively confronting collection agencies. They are actually so confident of their efforts, that if your debt ever reappears on your credit report, they will fight that collection effort for free. Not many credit restoration companies stand behind their efforts with that sort of confidence.
Whichever effort you choose to employ, Good Luck! Keep a stiff upper lip, and don’t give up your credit report efforts. It’s a fight worth fighting.
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