Rapid Reader Questions – Bankruptcy, Collection Agent, IRS, Student Loans

Things will be okay.

Q: What happens if you don’t file bankruptcy but still have credit card debt or loans at the bank? A: You owe them. Q: A collection agency sent my debt to a lawyer with a court date do I have to acknowledge it? A: No, but you will then lose by default. Q: Do I … Read more

Rapid Fire Reader Questions – Levy, Attorney, Collection, Bankruptcy

Sometimes I get reader questions that don’t have enough information for a big answer. So here are some rapid-fire questions and answers. Q: Can a collection agency take money out of an account that is not the debtors? A: If the debtor is not a signer on the account and the account is in the … Read more

Can’t I Just Pay My School Instead of the Collection Company for My Debt? – Rennie

Question: Dear Steve, I graduated from a university in 2012 and wasn’t able to receive my degree until I paid my debt I owe to the college. I recently contacted the credit and collection department of the college to see if I can be put on a repayment schedule. I was told by the representative … Read more

A Day In the Life of A Debt Collector

An Account From a Real-Life Collector I arrive at work with a long list of people to call, knowing that if all goes well, I may call 125 people today. Today, I’ll hear stories of businesses gone sour, failed marriages and terrible illnesses. I’ll hear outright lies: “The check’s in the mail,” or “The stamp … Read more

Final MTA Debt Collection Fraudster Pleads Guilty

The last defendant in the MTA debt collection scheme has pleaded guilty. Paul Anthony Vasquez pleaded guilty on January 17, 2012 to conspiring to commit mail and wire fraud and money laundering. Vasquez also agreed to pay full restitution and forfeit assets seized by federal agents, including over $950,000 in cash and a 1.5 carat … Read more

Defendants In Payday Lending Case To Pay More Than $294,000 For Illegal Garnishment Of Consumers’ Paychecks

Defendants in a payday lending case have been ordered to pay more than $294,000 for illegal garnishment of consumers’ paychecks. A federal court has ordered, at the request of the Federal Trade Commission (FTC), one of the individuals behind a payday lending scheme and two companies he controlled to pay $294,536 for illegally trying to … Read more

I Sold My MacBook for $600 and Spent The Money Before Shipping the Computer. – Catlin

“Dear Steve, 19 year old student, no credit history. in late April, early May I attempted to sell a macbook computer on ebay, which I was in possession of, it sold, however I didn’t realize the time period to ship, I was in the midst of taking my first finals of my 1st year. The … Read more

How to Make the Debt Collector Do What You Want

When you are in debt, sometimes you may feel that you are a “sitting duck” waiting for the debt collector to call. What you may not realize, however, is that there are laws which protect debtors from collection practices that you may find troublesome or harassing. The federal Fair Debt Collections Practices Act (hereafter referred … Read more

I Have an Account With HSBC And They Don’t Want to Settle. – Arvin

Arvin “Dear Steve, I opened an account with HSBC in 2004 for $1,600. I have been making my monthly payments even more than the minimum monthly payment required. However, due to my current financial hardship, I was not able to pay monthly. The interest rate is 23.80% and penalties kept adding to my account in … Read more

There’s Big Bucks in Bad Debts

For decades, credit-card companies and other firms would eventually give up after attempting to collect from deadbeat customers. Now, companies are packaging and selling many of those overdue accounts for pennies on the dollar to debt collectors. The collectors then aggressively pursue the debtors to repay, or they turn around and resell those same debts … Read more

The Collection Agency Will Not Give Me an Estimate I Am Able to Do. – Sara

Sara “Dear Steve, I have 1 credit card that has been in collections for a while now. I would like to pay it off but the collections agency will not give me a an estimate I am able to do. Is there any way of getting help in lowering the total amount I need to … Read more