What should the consumer do against the scare tactics that they usually employ?

If a debt collector contacts the consumer regarding an old debt, he/she should not admit to that debt (because he/she, in truth, doesn’t possess yet his/her credit report and therefore doesn’t know if errors were made in the reporting) and do not agree to make any payments.

The consumer should just state firmly that the statute of limitations has run on the debt in question and to not contact him/her again.

What if they persist?

If they continue with their tactics, the consumer can send them a certified letter, return receipt requested, and tell or remind them to not contact him/her about the debt again.

What if the credit bureau verified that all the information from the creditors are correct?

• The information will remain in the consumer’s report. What the consumer can do is send the particular creditors or collection agency his/her documents and his /her letters (attach it to Form F-26 or Request Removal of Incorrect Information by Creditor.)

• The consumer shouldn’t forget to keep the original copies.

• If the creditor/collection agency is located in the consumer’s immediate area (local) he/she should just drop by and speak with the manager or the president or the CEO. It is that important and it is that urgent. The consumer has the right to demand for he/she was wronged and according to the Fair Credit Reporting Act:

• The creditors must report only the correct information and that they should correct the incorrect ones.

• If they make a mistake, and the papers have been submitted to the bureau, it is their duty to correct the mistake.

• That the creditors should report to the bureau their disputed information.

• Report to the bureau if the account has been closed by the consumer.

• Provide the bureau with the delinquent accounts list for the month or for the year, if the account has been placed for collection, charged off, or was given a negative action.

• They should also finish the consumer’s investigation on a disputed debt within 30-45 days.

*If on the other hand it was the creditors who sent the consumer a correction, the consumer should send a copy to the bureau.

*If the creditor refuses entertain the consumer regarding a disputed debt, the consumer can call the bureau directly on their toll-free number, or they can sue the creditors for actual damages. If the court rules that the creditors have seriously harmed the consumer, they may be fined an amount for punitive damages.


What are the important things that the consumer should remember?

• Do not admit to owing the debt.

• Do not agree to pay that debt.

• Never send them any form of payment.

Why are these important?

Say it is not true that the consumer owe the debt , or that in his/her state, that debt is already considered expired (via the statute of limitations rule), but the consumer was unaware of all of these. Enter the collection agency with their lines and scare tactics and the consumer got bullied. He/she not knowing what to say or do—agreed to the above mentioned don’ts, that agreement might cause the statute of limitations to be revived.

In that example the collection agency called the consumer using an illegitimate claim at collection, had the consumer not agreed to anything, he/she would not be in trouble, but now that he/she unknowingly agreed to the debt—the collection agency may now have a legal right to collect from him/her.

Statute of limitation
How do collection agencies work?
Old debts and debt buyers
How debt collection accounts affect your credit report