Monthly Archives: July 2015

What Happens When You Are Purposely Avoiding Creditor Calls

Do you have a lot of debt, and collections agencies are pursuing you over this debt? Are you avoiding all calls from creditors and debt collection agencies, and throwing away their letters without reading them? If you are wondering what can happen with this debt, when you are actively avoiding any contact with said creditors and debt collections agencies read on.

First and foremost you should indeed be careful in deciding to speak to any debt collector. You should however read any and all written correspondence with these debt collection agencies and creditors. Be on the lookout for any errors or factual discrepancies or anything else that has been misrepresented. If you find any of these errors you should dispute them via mail, as errors can restart the debt clock as far as the statue of limitations goes.

If the debt is very old, you should be aware that if you make any sort of payment after being harassed by debt collectors that you will be restating the debt clock and statute of limitations on the debt. Normally after 7 years of no payments and no contact with a creditor, the debt will fall of off your credit report. Yet making a payment or admitting the debt is yours can restart this “debt clock” all over again, giving your creditors 7 more years to pursue you, and 7 more years for the debt to haunt you.

If your debt ends up in a collections agency, how the collection agency deals with your account will hinge on a few factors. The first being that they are legally allowed to pull your credit once per month. Your credit report will let them get a general feel for your finances as they stand, if there is any indication that you are making a decent income or paying on other accounts, they may decide to pursue you to the maximum extent that they are allowed by law. The next factor rests on how large the debt is, large balance accounts warrant more time and effort, while small low balance accounts yield little for the collection agency to expend to much effort.

Your debts will show on your credit report as being in collections. This is a huge red flag to any lenders that you do not honor your debts, so your lending in the future may be hampered. If the dent is large the creditor may seek a judgement against you. After a judgement has been filed on you, that too will appear on your credit report, further damaging your credit score and credit standing. The creditor can then take any legal remedies to collect on the judgement, depending on the laws of your state.

If you owe a bank due to a bad check or an overdrawn bank account, this could lead to further issues than described above. Most times these issues get reported to ChexSystems or TeleCheck, which are debit history agencies. If you get reported to these agencies, you could be denied a checking or savings account at any future banks, not only that but any banks you currently have in good standing can be shut down at the banks discretion if they see you appear in these systems.

Your only options are to work out a payment arrangement, or do nothing and wait for 7 years until the debt falls off of your credit report.

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