Scavenger debt collectors are companies that purchase old debts from original creditors and then contact debtors to recover these funds. According to BCS Alliance, scavenger debt collectors buy old debts for pennies on the dollar -- but they request the full unpaid balance from debtors to make a nice profit. Dealing with these types of collectors is often frustrating, but there is a wrong and right way for handling scavenger collectors.
Instructions
- 1
Request that the collection agency or company send proof that you owe the debt. Admitting to owing a debt encourages additional letters and telephone calls from the scavenger collect. Deny the debt, and then ask for written proof that you owe the money. If the company can't supply this information, it must stop collection attempts.
2Consult an attorney to inquire about the statue of limitations for debt collection in your state. Some scavenger collectors purchase old debts after the statue of limitations. If so, send a certified letter to the company. Mention that the time allowed to collect on the debt has passed and demand that the company stop contacting you.
3Negotiate for less than you owe. If you decide to pay the old debt, don't agree to pay the full unpaid balance plus interest. Scavenger debt collectors purchase debts for as little as 3 cents to 7 cents on the dollar, says BCS Alliance. Contact the company and agree to settle for no more than 25 percent of the original balance. Get all negotiations in writing before sending money.
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