Why You May Owe Money to a Company You've Never Done Business With - and How to Get Rid of the Debt Forever


If you have a past-due account that a creditor has charged off - which means that the creditor has written off your account as a bad debt - you may discover that a collection agency still tries to get you to pay the debt.

In fact, one collection agency and then another may pursue you for years into the future to collect on unpaid bills.

Here's why:

Every day, unpaid collection accounts are bought and sold among businesses and collection agencies. Let's say you have a past-due bill with a local business that you are not able to pay. After a few months of trying to collect, the business turns over your account to its in-house collection department - or to an outside collection agency that works on commission.

Then, if this collection agency can't collect money from you, the business simply charges off your account as a bad debt and reports this to a credit bureau within 90 days of the charge-off date...

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Fonfrias Law Group LLC. | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »