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If you have ever had to deal with creditcarddebt, you know it can be stressful. Debt collectors call at all hours of the day and pressure is put on borrowers to quickly make payments in full. The process begins when the debtor stops making payments on their creditcard and goes into default.
Dealing with creditcarddebt is challenging, let alone facing a debt lawsuit.If the creditor wins the lawsuit, you may face serious financial repercussions. Lawsuits also harm credit scores, and the stress from the legal process can exacerbate financial challenges.
Does Colorado Law Protect Me From Debt Collectors? When collecting a debt from you, collection agencies must adhere to federal and state rules. Fortunately, the federal FairDebtCollection Practices Act (FDCPA) protects all states. What is the Federal FairDebtCollection Practices Act (FDCPA)?
They are headquartered in Farmingdale, NY, and are known as a “late-stage” debt collector, which means they may have purchased the right to collect the debt from the originalcreditor. Although Sunrise Credit Services is indeed a legitimate debt collector , they are not thought kindly of by their customers.
There are many ways to request debt verification, such as writing a request letter. The letter must detail the specific information you require, such as proof of agreement with the originalcreditor, a final account statement issued by the creditor, and a breakdown of the debt (due dates, interest rate, and principal amount).
Some debt buyers —companies that buy and try to collect very old debts—still go after borrowers and might even take them to court. If they do this knowing that the debt is past the statute of limitations, they may have violated the FairDebtCollections Practices Act. You default on that debt.
Court of Appeals for the Third Circuit recently held that a debt collector did not violate the federal FairDebtCollection Practices Act (FDCPA) when it sent a consumer a collection letter inviting her to “eliminate further collection action” by calling the company, when in fact only written communication could legally stop collection activity.
Either way, you have an old debt hanging out there. That’s what Credit.com reader Dave, who says he can’t afford to pay off the old debts he owes, asks: My creditcarddebt is roughly $12,000. As far as Dave’s credit reports are concerned, these debts can’t be reported forever.
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