If you owe a debt and have failed to pay it back, chances are it will eventually get sold to a collection agency. This is a common practice – creditors regularly sell unpaid debts to third-party collection agencies after a certain period of non-payment.
But what happens next? Is it the end of the road, or do you still have options?
This article will provide a comprehensive overview of the debt collection process when debts are sold, your rights and responsibilities, and steps you can take if a collection agency tries to come after you.
How Collection Agencies Buy Debts in Mississippi
When the original creditor can’t collect on a delinquent account themselves, they may choose to sell the unpaid debt to a third-party debt purchaser or collection agency. This is called debt buying and allows creditors to secure some payment right away while passing the work of collecting onto another party.
There is a whole industry of companies that buy consumer debts for pennies on the dollar, hoping to profit by collecting the full balance owed plus their fees. The debts may be resold multiple times. The collectors often use aggressive tactics to try to get debtors to pay up.
While permitted, debt buying is regulated to protect consumers. Under state and federal law, buyers must provide debtors’ rights info, have documentation to verify the debt, and follow consumer protection requirements. Violations can lead to lawsuits and penalties.
My Debt Was Sold to a Collector – What Now?
Learning a debt collector has bought your debt can be stressful. You may get calls pressuring you to pay the full past-due amount plus their collection fees. Know your options and rights:
- Ask for debt validation – Request proof in writing they legally own the debt and can collect on it.
- Dispute inaccurate info – If the amount or other details are wrong, send a dispute letter. They must investigate.
- Check the statute of limitations – See if you can still be sued for the debt or if the window has expired due to state law.
- Negotiate a settlement – Offer the collector less than the full amount owed as payment in full. Get any deal in writing.
- Ask for removals – Request they remove from your credit reports in exchange for payment.
- Report violations – If collectors break laws, report to the CFPB and State AG. Consult a lawyer about FDCPA lawsuits.
- Consider bankruptcy – If you have many debts, bankruptcy may stop collections and provide a fresh start.
Your Legal Protections When Dealing with Collectors
Remember, federal and state laws limit what tactics debt collectors can use to try to collect your debt in Mississippi. Collectors cannot:
- Call repeatedly or continuously to harass you.
- Make threats of arrest or legal action that are false.
- Talk to others except you, your spouse, or attorney about your debt.
- Lie or misrepresent the amount you owe.
- Use abusive language or profanity.
- Publish lists of debtors who refuse to pay (“deadbeat” lists).
- Add their own fees to the debt unless legally allowed in the original contract.
- Try to collect without providing necessary notices about debt validation rights.
- Attempt to collect time-barred debt where the statute of limitations has expired.
- Garnish your wages without following proper procedures.
Stopping Debt Collector Harassment in Mississippi
If debt collectors are crossing the line, take steps to stop the harassment and assert your rights:
- Send cease and desist letters demanding they stop calling and communicating with you. Send via certified mail.
- Report violations to the Consumer Financial Protection Bureau if collectors violate federal laws and the Mississippi Attorney General for state law violations.
- Consult an attorney about suing collectors for illegal practices like excessive calls or misrepresentations. You may get up to $1,000 per violation plus damages under the FDCPA.
- Ask your original creditors to call collectors off if you can pay them directly. Get any promises in writing.
- Block calls from known collector numbers. You aren’t obligated to answer harassing calls.
- Dispute debts and make collectors prove you actually owe them. Request debt verification.
- Prioritize debts and pay most urgent ones first if possible. Let collectors know if you’ll pay later.
Using these strategies can help halt collector harassment so you can focus on responsibly repaying debts.
What If You Never Received An Original Bill?
A common issue arises when you are contacted about a debt but claim to have never received a bill or notice originally. Unfortunately, collectors often buy old debts from defunct creditors/providers without any accompanying paperwork or statements.
This does not let you automatically off the hook – under the law as long as they have basic details like your name, last known address, the amount owed and the original creditor, the debt can still be considered valid.
If true non-receipt though, be sure to aggressively dispute requiring documentation and proof you actually owe the amount claimed. Require collectors to prove their claim before paying anything.
Key Steps If A Collection Agency Contacts You About A Debt
If you are contacted by a collection agency by phone, mail or both about an unpaid debt, here are important steps to take:
- Record/Log Details – Keep detailed records of all interactions including dates, times, names, discussion specifics, calls, voicemails, letters etc. This creates a useful paper trail if you need to dispute later.
- Formally Dispute – Within 30 days of initial contact, send a signed dispute letter via certified mail contesting all or some of the debt, requiring documented proof. This requires them to halt collections until validating owed amount.
- Seek Debt Verification – Always formally request details in writing about the debt age, origin, exact past due amount and associated fees. Make them prove specific figures.
- Review Options – Depending on debt age or type, you may have options like payment plans, settling for less than full amount or bankruptcy that collectors may present if amounts are large.
- Know Your Rights – Collectors often use shady tactics hoping you do not know FDCPA regulations. If they call excessively, threaten illegal action or discuss debt with others, report to your state attorney general.
Stay calm and know your options when dealing with collection agencies. Dispute debts where able requiring proof and documentation. Ultimately if amounts are very large, consulting a lawyer may also help develop a constructive resolution strategy aligning to the law and your financial situation.
Can Collection Agencies Take Legal Action Against You?
Many letters imply or directly threaten legal action like lawsuits, arrests, property liens and wage garnishment to frighten consumers. Know though collectors face restrictions about actually suing in court:
- Time Limits – Debt statute expiration limits apply, usually 3-6 years. Collectors cannot file lawsuits or win judgments on expired, time-barred accounts.
- State Lawsuits – Federal law prohibits suing in a different state from where you signed the original contract creating the debt, and preventing distant venue abuse.
So actual lawsuits do occur by collectors but have defined restrictions (like debt age) and often specific amounts required making widespread legal action not cost-effective. Still possible though for recent, large debts.
For older debt past statue limits, collectors may still bug and threaten legal action but have no actual basis or intent to follow through. Empty intimidation threats still violate federal FDCPA regulations prohibiting deceptive practices.
Contact a Consumer Lawyer to Discuss Your Debt Collector Harassment Case
If you are facing aggressive or deceptive collection practices over debts you’re struggling to repay, contact the experienced Mississippi consumer protection attorneys at the Ware Law Firm today to schedule a case review.
Their team can protect your rights and stop debt collection agencies in their tracks. Contact their office in Magee or Ridgeland, MS, or visit their website at https://warelawfirm.com/ today.
