Identity Theft Debt Collectors I Dealt With
Identity Theft Debt Collectors I Dealt With
When a bank owns a credit card account that is in default, the bank can sell, that’s right I said sell this account to a debt collection agency. The collection agency earns a percentage of any amount they can collect from the debtor. In my case the accounts were fraudulent because the banks that extended credit on my behalf to a total stranger have pathetic standards to verify your identity when you apply for credit. And yes, these collection agencies can send derogatory reports to credit agencies on your behalf.
Wikipedia notes a collection agency is : “A collection agency is a business that pursues payments on debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. Some agencies, sometimes referred to as “debt buyers”, purchase debts from creditors for a fraction of the value of the debt and pursue the debtor for the full balance. Creditors typically send debts to a collection agency in order to remove them from their accounts receivable records; the difference between the amount collected and the full value of the debt is then a tax-deductible write off as a loss.”
Liz Pulliam Weston wrote a helpful article that spells out how you can stop their badgering and get them off you back.
Understand your debt collection rights.
Are you dealing with aggressive collectors?
Tags: collection agency, credit identity theft, identity theft, identity theft hurts, identity theft prevention, identity theft protection, theft of identity