What Debt Collectors Don’t Want You to Know – Part 3
Hopefully you have read our blogs titled “What Debt Collectors Don’t Want You to Know – Part 1 and Part 2.” This is the final blog discussing the things collectors hope that you are not aware of:
Your credit score will not improve if you pay the debt
A debt collector may insinuate that your credit score will improve if you pay the debt by telling you they will update your status on your credit report as “paid in full.” However, collection accounts negatively impact your credit rating whether they are paid or not. The fact that a collection notation is reflected on your credit report is an indication to other creditors or lenders that there is future risk. However, settling with a collector will stop the harassment and prevent a lawsuit from being filed, which could harm your credit score further.
You probably aren’t liable for your deceased relative’s debts
Collection of debts owed by deceased individuals is a growing business. A debt collector may call and try to convince you that you must pay your loved one’s debts even though they have no legal authority to pursue you for the debt. Unless you are a co-signor on the debt or you are the spouse of the deceased and you live in a community property state, it is unlikely that you have any obligation to pay the debt.
It should be noted that if the deceased borrower has an estate, the creditor may attempt to collect the debt from it. If the deceased left nothing, the collector is likely out of luck. Thus, if they can convince a loved one to pay the debt they don’t owe, they will!
If you are worried about how a debt collector is behaving or how your debt in collections is harming your credit, it is important to check your credit reports from the three major credit reporting bureaus. Also, contact us to discuss all of your debt relief options and how we can assist you.
Contact the Orange, Riverside and Alameda law firm of Fitzgerald Campbell, California’s premier debtor protection law firm. We can work with you to create a debtor protection plan and can work to halt harassment and reduce and eliminate debt. Contact us for a consultation by calling 855-709-5788 or emailing us at Info@debtorprotectors.com
Posted in: Debt Collections