Downright Scary Debt Collection Tactics


debt collectionWhen it come to recovering zombie debt, debt collection agencies will go to great lengths to try and pressure you into paying back the debt even when you are no longer legally responsible to do so. In fact, it seems that they are now teaming up with credit card companies to try and trick people into paying debts that they don’t legally have to pay and tinapbeana is reporting in the forums:

Background: apparently I have a debt with Wachovia from 2001. Long story short, I was much younger, naive, and trusting and found out about the debt after the fact. The debt is old enough that at this point the 3 year time period specified by my state has expired and I’m pretty sure I can have the item removed and all collections stopped via a ‘cease and desist’

Anyways, I get a letter in the mail this week marked ‘Visa’. I always open these so I know if I need to shred or burn it. Turns out this letter marked ‘Visa’ is from Resurgent Capital and they have an “amazing offer” just for me.

Right.

They’ve partnered with Wachovia, and the deal they’re offering me is this:

  • I owe Wachovia $553
  • Resurgent is offering me a ‘Visa’ with a $490 limit. This card will be instantly maxed out with my Wachovia debt
  • Resurgent will kindly ‘forgive’ me the remaining $63 in debt to Wachovia
  • All I have to do is make minimum monthly payments like on any credit card

Here are the catches:

  • Accepting this offer resets the collections and reporting clock
  • Accepting this offer allows them to collect a debt which, according to legislation in my state, is no longer collectible
  • The ‘new’ balance on my credit card would be subject to an 18.99% interest rate
  • Defaulting on the card would reinstate my balance with Wachovia under the new ‘clock’ and leave me owing fees and interest to Resurgent

It’s obvious that they are trying to collect on this old debt that they have no legal right to by making it sound like they are giving her a “deal” on a credit card – and luckily she was smart enough to spot that the only ones that would benefit from this would be the companies.

If you do have old debts that were never paid, but have exceeded the time limitation in the state you live on repayment, be very wary of any third parties coming back and trying to get you to pay these old debts. There are a lot of them out there and they are getting more aggressive and using misleading tactics (as this example shows) to try to get you to make the debt active again.


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February 10th, 2007
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Comment Number:
1
Written by:
tim
Posted on:
February 11, 2007 at 11:48 am

sneaky bastards!! they would also probably list your account as a charge off which would screw your credit for 7.5 yrs.

Comment Number:
2
Written by:
Presenting the 74th Carnival of Debt Reduction : Blogging Away Debt
Posted on:
February 12, 2007 at 5:48 am

[...] Strain presents Downright Scary Debt Collection Tactics. “When it come to recovering zombie debt, debt collection agencies will go to great lengths [...]

Comment Number:
3
Written by:
Steve
Posted on:
June 25, 2007 at 1:57 pm

You know it never ceases to amaze me at the lengths these collectors are willing to go to make a buck. They literally will lie, cheat and steal.

Comment Number:
4
Written by:
Robert
Posted on:
August 5, 2007 at 3:50 pm

Unfortunately a “Cease and Desist” will not remove the item from your credit report. If you do ever settle the debt make sure they agree to erase it completely from your report. Making the account activity on your credit report more recent could actually affect your score negatively, even if you are in fact satisfying the balance.

Comment Number:
5
Written by:
Don
Posted on:
September 17, 2007 at 10:55 pm

Be very careful when ever dealing with Resurgent Capital or their other related outfit, lvnv funding. They use a variety of tricks to try and get folks to send them money. Educate yourselves through the internet concerning them and discover your good options. Do not trust what they say over the phone. Do not ever send them money, especially a check by phone or western union payment, ever! If you ever decide on a settlement offer, Always always get someone from their place to send you a settlement agreement in writing first, specificly detailing in writing exactly what they will do for you if you send them a settlement check. You Must get this in writng from them first, and make sure you read it very carefully and it contains what you need them to do for you with a specific time frame detail included. Otherwise, you have only a verbal offer with no guarantee that they will do anything to assist you after they get your money. Don’t risk it, trust me. Look out for yourselves and your family finances. They must be willing to do specific things to help and benefit you in writing, in the proccess, otherwise, turn them away.