Welcome to my credit reporting industry's online consumer credit  repair advice column, "Ask Lauren".

This column is a bi-weekly advice column that reaches  out to consumers that have questions about their credit.  If  you have a question and need help please email all questions to  info@waltoncreditcounseling.com I will pick two questions every other week to answer.                                                                   

Please do understand that all 3 credit bureaus policies and legal requirements change from time to time. Some of my responses may not reflect current legal requirements or policies. I am extremely passionate about my work and do try my best to give the most accurate information. I would never mislead anyone. Please enjoy and don't be scared to ask. My advice is FREE.

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Consolidate to get the money you deserve.

Dear Lauren,

What exactly can Debt collectors do. I have been getting non stop phone calls. Are they aloud to harass me? One creditor even told me they were a government agency.

Thanks,

Jodi , CA

Jodi,

Collection agencies will use any method available to collect a debt. Here is a list of what they can not do.

1. Give false or misleading info. about the debt.
2. Interrupts your work place.
3. Call after 9:00pm
4. Make excessive calls to your house. or your work place.
5.Send any letter that may look like official government documents.
6.They can not threaten you or family member in physical manner.
7. Deposit a post dated check
8. Misrepresent themselves as a government or law practice.
9.Imply that physical damage may occur to clients property.
10. Continue to harass you after we send notified cease document.

Dear Lauren,
 
On my credit report I have an unpaid collection. I have tryed to dispute with both creditor and bureaus, but no luck. What is your sugestion. This is really effecting my score? I need this item off.
 
Marcia Stein

Dear Marcia,

Unpaid collection accounts can be a very complicated part of credit restoration. They need to be handled in the best possible way in order to avoid damaging the credit score. It is always a good idea to settle unpaid collections for a deletion with payment. It is not always possible to get the collection agency to agree to delete the account with payment, but we have been successful doing so, more than 75% of the time. Keep in mind the common collection can be settled for around 50% of the current balance, whenever you are requesting that the collection agency also delete the account when you pay it, that collection agency will usually want 100% of what is owed to agree on the deletion portion. ( you look out for them, they look out for you.) It is always better to have a collection agency agree to delete rather than settle it for a cheap dollar amount. This approach is also reliant on how much money you have to pay on these accounts, because if you only have $1000 to spend and you currently want to settle $2000 worth of collections, then you would be better off settling the accounts for 50% with no deletion in order to at least get them fulfilled, but if you have the money to spare, we always suggest going for the guaranteed deletion. The credit score is the most important thing.

 Keep in mind that credit card companies and other big banks DO NOT like to delete 98% of the time, so it is always best to settle those accounts as cheaply as possible because an account settled for less than the full balance is not much worse than a charge-off that was paid in full, so save money when you can. We do charge more for this service.

Note :
If you want to save the money and settle the collection accounts yourself then keep a few things in mind.

* Always get an agreement from the collection agency in writing

   * Be careful about what you say because they will try and twist it around.

   * Check with your home State to see what the Statute of Limitations is on being sued for a written contractual      obligation because collection agencies are usually much more accepting when they know they can't sue you.