subject: Easy and effective steps to deal with an old debt [print this page] Easy and effective steps to deal with an old debt
If collectors are calling you regarding old debts, then you need to handle them efficiently. A single mistake may land you in big trouble. Here are some effective steps that can help you deal with old debts easily:
1. Check your credit report:If the collection agencies are calling you regarding an old debt, then check the credit report to see whether or not that account is listed on it. If the account is not shown on the report, then it can imply 2 things. The debt is more than 7 years old and has been removed from the report or you don't owe the debt. You should also check whether the Statute of Limitations (SOL) on the debt has passed.
If the SOL period on that debt has passed, the creditors can't file a lawsuit against you. If you find that you owe the debt but the SOL period on that account has passed, the best course of action will be to not acknowledge the debt. You should never agree to make payments on that debt. This is because once you start making payments, the SOL period on your debt starts again. The account becomes new again. This places the creditor on an advantageous position. The collector can now sue you if you default on the debt.
2. Validate your debt: Ask the collectors to validate the debt. If the collectors don't validate the debt, then under FDCPA rules they lose the right to make collection calls to you. However, if they can prove that you really owe the debt and the SOL period has not passed, then you have to pay off the bills. Otherwise, the creditors can file a lawsuit against you.
If you're thinking how can I get someone to pay off my debt', then you should know that it is you who has to pay off the bills. No one else will pay the bills for you. Therefore, try negotiating with your creditors/collectors to settle or pay off your debts in full. However, once you settle the debt, make sure to get a written agreement so that the creditors can't harass you later on. You should also check the credit report to see whether the account status has been updated.
3. Get legal help if you've paid off the debt: If you've already paid off the debt but the collection agency is still disturbing you, then get legal help. Contact a lawyer as soon as possible and have him write a letter to the creditors/collectors mentioning the age of the account, and that you have already paid off the debt, along with expressing the fact that you don't want to pay anything more toward that debt. It should also be mentioned in the letter that the creditors should contact your lawyer in future if they want to communicate with you further.
Finally, whenever creditors/collectors call you regarding an old debt, you should ask them to prove that you owe the account. You must also check whether the collection agency is authorized to collect the debt.
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