5 Things a debt collector will not tell you, that you must know.

The federal Fair Debt Collection Practices Act dictates how and when a debt collector may contact you.

Here are the 5 things a debt collector will not tell you:

1. They bought the debt for pennies on the dollar. So start at 25% of the debt.
2. When you pay the % that you agree to it wipes out the whole debt (get it in writing)
3. Any Payment you make re ages the debt Click here for the map for the statute of Limitations.
4. Call at work after being told your employer doesn’t allow personal calls.
5. Use obscene language or threaten to harm you.

One more thing to know when negotiating with a collection agencies about garnishing your pay – Federal law states no more than 25% of your income may be withheld. Some states have stricter limits.

Completely Free Credit Score
  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Linkedin
  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Linkedin
  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Linkedin


26 responses to “5 Things a debt collector will not tell you, that you must know.”

  1. A. Daniel says:

    Hi Credit Guy,

    I checked out my credit report, and both the original creditor and the collection agency is reporting the debt. How can 1 pay for delete letter correct this? Or do I have to do two different pay for delete letters for each the original company and the creditor?

    A. Daniel

    • Sully says:

      A. Daniel,

      You have to start by contacting the the first creditor and verifying they have sold the debt and written off the amount.. If that is so, then they should be reporting it as a $0 balance. After that, go to the current owner of the debt and negotiate the removal, if you are successful try to get the letter from them addressing the other creditor also, if they will not do that then don’t worry about it that old paid collection is not hurting as much as you think.

  2. Tiffany says:

    When you negotiate a pay for delete, should you wait for the confirmation in writing that they will remove the account from your credit report before paying for agreed settlement?

  3. Jennifer says:


    Does the Pay for Delete letter have to be mailed/faxed, or is it OK for the collection agency to email a PDF version of the letter as long as it is signed and on their letterhead?


    • Sully says:


      The pay for delete letter is best signed in blue ink, but a faxed copy will also work but may need to be verified via phone by the repositories. Just make sure you get it before you pay. Take care!!!


  4. Michael says:

    Ok when I was in high school I was injured and was taken to the ER and my family could not afford insurance so I did not have any. The hospital charged me $2968 for the total cost that day, for which $798 of that was the Dr’s portion. Well being in high school I could not get that type of money and my parents didn’t make much so I just planned on paying it when I got out and got a job. Well now a couple years down the road at the age of 20 Im saving up to pay it off and I check my credit report and I have Two collections… One for 2968 and one for 798 how do I go about paying this off in full with out paying the Dr’s portion twice even though to me it seems they have double charged me for that. And seeing that I was still in high school is there a way that I could get it deleted off my credit report after being paid off. I make 2100 a month and have about 1100 in normal house hold bills and cant even get a car note for 400 a month due to the fact no one will work with me cause of my “collections”
    I need some help and guidance please.

    • Sully says:


      so Let’s assume you are still 20 and the report you pulled is recent. I have some real concerns because you were under 18, if you would be liable for the debt from a legal perspective, but from a moral perspective, it is yours and you don’t want to burden your mom and dad. We have some options and they all revolve around who owns the debt now. If it is still the hospital & doctor, then you are in luck, they will take 1/3 of the debt easy. They should be able to explain the billing and correct it if there is an error. Watch the other collection video’s and call the hospital asap before they sell the debt… plan on paying in full 10 to 30 cents on the dollar… let me know what happens.

  5. Rose says:

    Credit Karma is showing a “derogatory” mark for a tax lien from 2004 and 2005. (the report they say comes from Transunion) 2004 was paid in full in 2005, with 2005 paid in full in 2006. These were town property taxes. I inquired to the town clerk via email regarding the redemption of these. The town clerk replied that the redemption for taxes were recorded in book #, page#. This is 2014 why would they still be listed and what would be the procedure to get these removed? Thank you for your time.

  6. David says:

    What happens after the statue of limitations has been exceeded? I moved to CA in ’09, the collection was posted to my credit report in ’10, and it is now ’15. Please help and thank you.

  7. Amber says:

    I have a a new collection (just showed up a week ago) that tanked my credit score. It is for a utility bill that has now been sent to collections. I would really like to negotiate a delete. I am willing and able to pay it in full. Do I approach the utility company who is not on the credit report first or the collection agency? Is a pay for delete offer better via mail or phone? Thank you

  8. Kathleen White says:

    I just received a collection in the mail for a bill incurred by my daughter for whom I co-signed on an apartment for a $325 cleaning fee. She states she never received the bill. I contacted the collection company and they hung up on me when I asked for a street address to send a letter certified. The complex sent me a copy of the bill and stated they would pull it back out of collections and negotiate with me once they realized they made an error by charging her for damage that was listed by them on her move in form. So, what’s my best move? As of today, my credit score is between 785 and 814, depending on the agency. Do I negotiate locally and get a release and pay with a check that can prove payment or work with the horrible creatures at the collection agency?

    • Sully says:

      Do not work with the collection company, ask the landlord to get it back from the collection company. Don’t forget to ask for a letter stating it was reported in Error!!!!

  9. Kathleen White says:

    I should add I went to the BBB and found out the street address and sent a certified letter to the collection agency (within the 30-day time limit) disputing the charge and asking for all documentation around the debt. I’m just thinking if I satisfy the debt with the original creditor, I’ll have a leg to stand on to dispute anything that ends up on my report. I don’t trust the agency.

  10. Nancy says:

    An old dental bill for $300.00 appeared on my credit report recently. I called the collection agency and told them I’d pay in full but I wanted a letter from them agreeing to delete the debt from the credit report first. They refused. I sent them a request for validation letter to which they have responded with proof the debt is mine. I plan to mail a pay to delete letter stating that I will pay in full but I want the debt removed from any credit reports. What do I do if they refuse again. I just want to pay the bill and move on. Thank you.

    • Sully says:


      That may be the best option (pay and move one) If they will not work with you on removal then I would ask for a reduced amount for “full payment” be sure to get it in writing though!!

  11. Toni says:

    Hi….I moved out of an apartment complex that I fully paid the rent on….This was 3 years ago…..I checked my credit a couple of years ago and there was a collection on my file….It was a court order….I never received a summons to come to court…If it was sent then it was not sent to my address…The police did not give me anything either…I contacted the collection company asked them what the charges were for…they sent paperwork of basically trumped up charges (back rent, cleaning fees and damages)…I don’t owe back rent because I was not there and my lease was paid in full when I left….I sent letters to Equifax, Experian, and Transunion disputing the charges and asking them to produce a rental agreement…The charges stood more than likely because it was taken to court and because I was a no show…but like I said I received nothing and was quite surprised when I saw it on my credit report….What can I do…This complex was on our local news a couple of years back an we closed down…How can I beat these fraudulent charges.

  12. Frances says:

    I have 3 accounts in collections, that I would like removed off of my credit report.I am trying to raise my score. From what I gather from the posts…
    I need to call these collection agencies and request a letter saying that they will delete the account when I pay?Please let me know asap.

  13. Nicole says:

    My husband had a vehicle he was paying on years ago when he lived in Missouri. He later moved to Texas and then a while later he was laid off. He moved in with family and let the vehicle go back. In 2011 he received a certified letter from a court in Arkansas. He had a new job by then but couldn’t afford to travel to Arkansas for the hearing. We discovered a judgement on his account for $9.5k last year. I’m lost. We have been trying to repair our credit so that we can buy a house but no one will lend you us with this on there.

    • Sully says:

      Nicole, That is a hard situation but you may have to wait for it to fall off or you could try to make an offer to them for less than the full amount. the good news is that it sounds like it will come off your report in a few years

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Share This