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How Do Collections Accounts Affect Your Credit?

Taurus Collect

If you fail to pay back your creditor or lender or miss out on instalments regularly, they may resort to a debt collection agency or sell your account to a debt buyer. Then, the debt collection agency will pursue you to recover the money from you, and you are legally obliged to make the payment.

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Dealing with Debt Collectors

Debt Free Colorado

When collecting a debt from you, collection agencies must adhere to federal and state rules. Fortunately, the federal Fair Debt Collection Practices Act (FDCPA) protects all states. The Fair Debt Collection Practices Act (FDCPA) does not apply to original creditors or cover company obligations.

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Charged Off as Bad Debt: An Explainer

Credit Corp

The seven-year clock starts on the date of the last scheduled payment you didn’t make and doesn’t restart if the debt is sold to a collection agency or debt buyer. Once you have enough money to negotiate, contact the original creditor. Ongoing Apr: 12.99%, 17.99% or 22.99%, based on your creditworthiness.