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  • Geebo 8:00 am on April 17, 2020 Permalink | Reply
    Tags: debt collectors, , ,   

    Are debt collectors coming for your stimulus check? 

    Are debt collectors coming for your stimulus check?

    Debt is a delicate topic to discuss. There are those who think that anyone who is in debt must have lived outside their means and wasted all their money on frivolities. While cases like that certainly exist, the truth is that most people who are in debt are that way because of an unforeseen incident that happened in their life. Much of consumer debt comes from medical issues that even with health insurance still incurs a great deal of debt. The point that we’re making is that not everyone who is in debt is some deadbeat who refuses to pay their bills and spends their money on the latest model of an expensive TV. Having said that, to those people who are in debt through no fault if their own, debt collectors may be coming for your economic impact payment or as it’s more colloquially known your stimulus check.

    The stimulus checks were intended for people to be able to pay for food, rent, and utilities during this uncertain time. However, there are few protections in place preventing debt collectors from coming after your stimulus check when you need it most. While some states and larger municipalities have passed legislation to protect consumers the majority of stimulus recipients have no such protections. It could be especially problematic for those who have had garnishments levied against them. In many garnishment cases, the debt collectors have an agreement with your bank and are monitoring any payments that come into your account. In this case, your stimulus payment could be intercepted and be taken as garnishment.

    So what can someone do if they need that stimulus payment just to keep a roof over their head or food on the table? One thing you can do is to go to the IRS portal
    and change your form of payment from direct deposit to a physical check. This way you can get the check cashed without having the debt collectors knowing that you’ve received your stimulus payment.

    While you should pay off your debts in a reasonable matter, most people should never have to go hungry or homeless because of them.

    (H/T Market Watch)

  • Geebo 9:00 am on December 12, 2019 Permalink | Reply
    Tags: debt collectors, , ,   

    Debt can have an expiration date 

    Debt can have an expiration date

    Debt collection is an unusual business. In some states, you have to have a perfect credit record in order to work in debt collection. You’d think they’d hire people with bad credit since they’re the ones who know how to avoid collectors. It’s also not unusual for certain debts to be passed on from the initial vendor to a debt collection agency and then to other debt collectors down the road. So it may not come as much of a surprise that some of these debts end up in the hands of collectors who may not follow the law when it comes to trying to get money out of people who probably don’t have it.

    Debt collectors can sue you for any amount that’s been sent to collections. However, they only usually bother with lawsuits if they’re owed a substantial amount of money. On top of that, they have a limited window in which to file suit depending on the state. Due to the vast amount of debt some of these collectors have purchased, they don’t always meet the deadline to file a lawsuit. According to the Better Business Bureau, this hasn’t stopped some debt collection agencies from trying to collect on debts by threatening lawsuits even though the statute of limitations has been reached.

    Each state has its own statute of limitations. So before you agree to any kind of payment, not only should you check to make sure the debt is legitimate or not, but you should also make sure if the statut of limitations has been reached. In many states, if a collector is threatening to sue you after the statute of limitations that can be considered as harassment. Sadly, that’s not the only underhanded tactic that some debt collectors use. Maybe in the future, we’ll have more posts about how to protect yourself from underhanded debt collectors.

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