What can a collecting agencies do?

Status
Not open for further replies.
You guys don't get recurring interest and fees on your collections in the US?

Here in Norway, any collection agency will start adding interest and fees to the amount in question. So, if you initially owed $1000, after 3 months you would soon owe $1500. Before you know it, it would be $2000, then $2500, etc. Their "processing fees" are insanely high too - which is how collection agencies make a great living.
 


Yeah we do, most states have a maximum amount that they are able to charge I think though, but its normally pretty hefty.


ImagesAndWords said:
You guys don't get recurring interest and fees on your collections in the US?

Here in Norway, any collection agency will start adding interest and fees to the amount in question. So, if you initially owed $1000, after 3 months you would soon owe $1500. Before you know it, it would be $2000, then $2500, etc. Their "processing fees" are insanely high too - which is how collection agencies make a great living.
Click to expand...
 
Sounds like they cannot do a whole heck of a lot...especially if you are planning to leave the country. Check the SOL in the state that you are in, and if it has passed, they cannot collect anymore...period. In any case...screw them!:D
 
Maz said:
Nobody is going to spend money to sue you if you only owe 1k. It will hurt your credit though.

Its when you own 10k+ than they might consider suing you.
Click to expand...

When I was a collection agent we would sue for 150 dollars or more as long as the debtor had verifiable address and assets. When someone is sued for a collection amount, court costs will go onto the judgement if won. They will include that. So 1000 dollars is more then enough for them to want to sue for.
 
darbsllim said:
Read this:
http://www.bradmills.ca/MustRead.pdf

It's called "HOW I CLOBBERED EVERY BUREAUCRATIC CASH-CONFISCATORY AGENCY KNOWN TO MAN"

It has some really eye opening information.[/quote

I'm reading it right now and it is pretty interesting. It does make a lot of nice points if the information is accurate. However, a lot of these arguments are all over the place and you have to wonder at the feasability of their implementation. Most people know that the "law" doesn't very often operate within the parameters of the "law."
Click to expand...
 
punk - if you'd spent as much time and effort making some money, instead of trying to dodge your bill, you could have already paid the measly grand..

Why are you running?

Depending on various factors, such as where you live, the type, age and balalance of the debt..

they can sue you and obtain a judgment for the balance, plus interest, and all their legal fees, so that grand can quickly turn into $1,500-$2,500. Once they have a judgment it's usually good for 10 years (while racking up interest), and can easily be renewed for another 10. with judgment in hand they can attach any type of property you own, levy on assets which will include internet businesses, domains, properties and so forth, garnish your wages, and several other things that is not fun to deal with.

On top of that, there are credit consequences which can affect your ability to gain employment, secure insurance, get favorable rates on your mortgage, car loan, etc. And that is perhaps the greatest irony about deadbeats, the money they avoid paying is a drop in the bucket (usually) to the money they end up PAYING down the road.

It's cool not to pay your bills though (right?), so if you want to be cool, keep running,a and stay out of the US.

:)

(ps) As already pointed out, the odds are pretty good, however, that you'll just have to deal with collection letters and phone calls for a few years, and that's not a bad way to live, eh? [tone intended]
 
ImagesAndWords said:
You guys don't get recurring interest and fees on your collections in the US?

Here in Norway, any collection agency will start adding interest and fees to the amount in question. So, if you initially owed $1000, after 3 months you would soon owe $1500. Before you know it, it would be $2000, then $2500, etc. Their "processing fees" are insanely high too - which is how collection agencies make a great living.
Click to expand...

Yes, but if they never sue you and you don't pay it, well it doesnt matter. My state SOL is 3 years. I regret that I am so familiar with it, but the past is what it is.

The way collection agencies make a living in the US is duping people into paying the fees. Many "collection agencies" are debt buyers who pay like 2 cents on the dollar. If you really want to pay them, you can get it knocked down really low in settlement-many will take 20-30%.
 
brianpaxton said:
(ps) As already pointed out, the odds are pretty good, however, that you'll just have to deal with collection letters and phone calls for a few years, and that's not a bad way to live, eh? [tone intended]
Click to expand...
Uh, only if you WANT to. Stopping calls is as simple as writing a letter. Junk mail isnt that much of a hassle.

I am not saying to avoid bills, but what's done is done and you might as well take advantage of the laws in your favor.

In fact, I would say the biggest issue IS the avoidance of a bill that probably couldve been worked out easily. Everything is negotiable, and I have never had an experience where a hospital wouldnt workout a reduced fee or low installment plan. probably could have taken care of it for a couple hundred or a few small payments. Once you just let it go there are legal tactics to help a debtor, but there are the incomveniences you mentioned plus possibly sticking for 7 years on reports,etc.
 
Status
Not open for further replies.
Top Bottom