Some of you may be wondering what is the difference between debt collectors and junk debt collectors. Junk debt collectors purchase the right to collect debt. Usually this debt is old and expired. What I mean by expired; the statue of limitations is up. The statue of limitations, also known as the SOL, is the time debt collectors have to collect on the debt or file a lawsuit to collect the debt. The statue of limitations starts on the date the account/debt becomes delinquent. If the statue of limitations has expired you can't be made to pay the debt. Junk debt collectors are known for practicing ruthless and illegal tactics to collect. They have been known to threaten people with jail, use profane language, harass you by phone, call relatives or even your place of employment. If you are dealing with a debt collector, familiarize yourself with the Fair Debt Collection Practices Act (FDCPA). There you will find the laws all debt collectors must follow; this includes lawyers whom collect debt on a regular basis, collection agencies etc. You may be asking yourself how they can try to collect on debt that is expired? They are hoping that you don't know your rights. They are hoping they can harass or bully you into paying the debt. They are hoping you don't know what the statue of limitations is or that it even exist. Junk debt collectors may even try to sue you. If you receive a court summons, you must show up. If the statue of limitations has expired, this is your defense, and the case will be dismissed. If you don't show up they can get a default judgment against you, and then they can collect on the judgment. If a junk debt collector is calling you, don't acknowledge the alleged debt or make a payment. If you make a payment, you have reset the statue of limitations. The statue of limitations varies from state to state. Usually it is 3-6 years.
If you find yourself dealing with a junk debt collector, let them know that you are familiar with your rights and that you are prepared to fight! They will usually back off!
Until next blog...take care of yourself and be good to those you love!
