Thursday, February 08, 2018


Collection Agency Threat

All of my life I have paid my debts on time. Beginning about ten years ago, I began having disputes with phone service providers. AT&T, T-Mobile and just recently, Verizon. Also with HSBC bank.

With each of these companies, I tried to resolve the debt. I was not able to do it! These companies would not own up to billing and accounting errors.

Each of these companies turned the disputed amounts over for debt collection. The big threat of a collection agency is that my credit rating will fall and I will have a tough time with credit.


Suing to recover
It's been my experience that collection agencies do not take a collection to court to get a debt collected. All of my disputed debts were under $1,000. I just do not respond to debt collection efforts by these agencies.

Eventually, all of these collection agencies just went away and stopped trying to collect.

My FICO score is 677.



  1. The companies that the collection companies represent are utility companies of sorts and are regulated by the State of California. I would contact the Department of Consumer Affairs and ask them to intervene in your behalf if you feel that you have been wronged. They will get them off your back pretty quick.

    1. Paul in Florida
      When you have a debt from XYZ company they Report it to one of the three credit agencies they in turn sell that Account debt to anyone it does not have to be the state of California it could be A collection agency (they Buy them by the hundreds )in Florida New York or New Jersey makes no difference. That agency will do everything in their power to try to get you to pay
      If they can't get you to pay after a certain amount of time they will resell that debt to somebody else and the cycle goes on and on and on
      The XYZ company has filed a tax write off for that debt the first year
      If the debt was hypothetically One thousand dollars one could probably buy it for 500 each time it's re-sold it becomes $$ less

  2. What bugs me is when we get calls from collection agencies trying to find someone close to our name. What happened to our right to privacy?

  3. With your financial situation (that you've indicated )
    And your age,, what do you really care about your credit score
    You have a qualified financial advisor working for you
    I'm assuming you have a secure a bank account and you're happy with that bank and don't plan to change you're receiving SSI
    I would tell the debt collector to kiss The backside of my dusty trailer on a rainy day

    1. Ed,

      I agree. My credit score is just a number.

      I do not talk ever to debt collectors.



  4. Feel free to read if you want to delete That's fine

    Your credit score doesn't mean squat
    Go to your nearest bank that you do business with and talk to the branch manager
    Ask him what the best advice would be to resolve that situation
    With the X YZ creditors
    When you apply for credit or you're going to buy a new RV or a new home or a new car most lenders and most banks don't use the big three
    Typically they were just glance at it however what there will look at is your banking history this is why I said your credit score don't mean squat
    Side note
    If you're applying for a credit card that company will do a check on your three credit reporting agency's to determine if you qualify for their card
    That is basically the only time your credit reporting score is noted

    "In a typical account application process, the bank uses your name and Social Security number to conduct a routine financial background check. The very first step in this background check is usually taking a look at your ChexSystems report. The information included as part of the ChexSystems report reveals any bad consumer banking history such as outstanding overdrafts or bad checks you have written. Other information reported includes security alerts or freezes."
    More than 80 percent of commercial banks and credit unions in the U.S. have access to this report. And almost all of those that have access will pull it,

    If you do not pay your AT&T bill and AT&T report you to the credit reporting agency they in turn sell that account (debt) to a collection agency

    That agency will try to make every effort to collect if they could not collect they will sell that account to another debt collection agency for less money etc. etc. that process keeps going for about three years, After seven years The debt reporting agency (One of the big three)Is supposed to remove it from your file (they don't always do thats). That's one of the reasons why the bank does not used the big three with a whole lot of stock

    If this explanation is too long you do not need to post this this is just for your information only

    1. When applying for a loan of most types, the higher your credit score the lower your interest rate will be. A solid credit score is seen as a sign of a financially responsible person. One who honors their promise to repay.

    2. As George said, these companies would not own up to
      billing and accounting errors. Often they don't honor their
      promises and I've had them out and out simply lie to me.
      Good for you George, standing up to them!

  5. Hi George... imho you did exactly the right thing, ignore them. My view, when the companies turn the "debt" over to a collection agency, they are admitting they cannot collect the debt, and are "hoping" to get some small percent back. I suspect these companies may even enjoy the potential harrassment techniques that the independent collection companies just might use. I suspect the fine print of the phone companies is a huge source of the "debt" they are trying to alter your service and you are now in a new 2 year contract. You are The Man. Eventually these debt collectors will also give up. It must be a hell of a way to try to make a living.

  6. George, is there a particular bank where you have a checking account and/or other accounts and have been doing business with that particular bank for a while? Does your bank (or credit union) have a convenient "brick and mortar" location in and around San Diego? If so, I would pay them a visit, see if there is someone on staff to listen to your problem, look at all your paperwork with these companies, and help you figure out what you should do or not do. If you have a somewhat hefty account(s) with the bank, helping you figure out a solution to your problem is great public relations in their keeping your accounts. Heck, my son between college semesters use to assist customers of a bank in balancing their check books; that is how he made his spending money when he went back up to college. In my opinion, it is important that your problem be settled because, for example, in my state liens against my assets can be filed with the Clerk of Court for nonpayment of debt. I have no idea how the state of California would deal with this.

    1. Hi Dee,

      I do not consider this debt to be a problem for me. The only reason that I Blogged about it is that I had just received the collection letter. And, it was on my mind.