Have you ever thought about why things tend to happen in groups? Most of the time, it's our own fault, but sometimes it seems like an unseen force is to blame. More later!
If you look at your credit report, you might be able to figure out how some organisations work. Check the dates of the entries, the validity of the debt, the amount of the debt, and how many times the same debt has been entered. These are just a few examples of entries that are easy to make up and are never checked or questioned. There are signs that at least 75% of the reports are wrong or were made to be wrong on purpose.
When it comes to your credit report, it is your job to make sure the information is correct. Credit reporting agencies don't care if the information collection agencies give them is right or wrong. Be aware that collection agencies, etc. send a lot of money to credit reporting agencies. They can exist because agencies, banks, and other groups let them join. It doesn't matter if the reports were made on purpose to be false or out of spite. It also doesn't matter if they were filled out with wrong dates, amounts, or things that don't exist.
Even though the above paragraph paints a bleak picture, the actions are illegal and too often go unchallenged because people don't know what's going on or are afraid of the people who report the news, so they reluctantly accept it.
To go back to the first statement (things happen in groups): When a collection agent looks at a credit report, he or she often sees a lot of accounts that are behind. The agent assumes that the person in question doesn't dispute reports or doesn't know about them, and that the person can be easily scared into paying quickly. The person's place of work and whether or not payments have been made to other places are also listed in the credit report, so the agent again assumes that the person wants to pay their debts.
By the time the debt gets to this point, penalties, interest, and other fees have been added so many times that the original amount of debt is now many times that amount. Because of this attempt to make money, agencies are always trying to scare people. Remember that the agents have worked in this "profession" for a long time.
It is very important that you learn as much as you can: Check your credit report to make sure that the information is correct. You can easily get the information you need to dispute the debt, stop annoying phone calls, ask for proof of the debt, and generally stand up to rude attempts to scare you into paying. Look down.
Getting control of your money is another important step (never let a collection agency control yours). There are many books and organisations that can help and give good advice. But be aware that many well-known debt relief and advice services are less reliable and honest than collection agencies.
One last thing: Don't ever make money decisions out of fear.
