By: Shannon (Guest writer)

Let’s begin with Guarded Secrets #3 that Debt Collectors try and hide from consumers. The biggest secret that Debt Collectors and Debt Collection Agencies don’t want consumers to find out is many debt collection agencies cannot try and collect any money from you.

Note: Part 1 of this two-part article is published here.

Many of them are doing business illegally. You see ALL debt collectors must be licensed and bonded. You can go to your State Assessments website to check the debt collection agencies license. Remember, having a business license is the first step. They must also be bonded. In lieu of checking via the internet, you can call your state attorney general’s office to check and see if they are licensed.

If you find that the debt collection agency is not licensed simply write them a letter explaining that according to your Attorney General’s office, that company is not listed and you do not support or encourage unlicensed businesses in your state.

Therefore, you are unable to provide any further information until that Debt Collection Agency can show that they are licensed and bonded in your state. Funny right!  Yes, I have sent many letters like this and never heard from the Debt Collection Agency again.

An unlicensed company that is doing business in your state can be sued, and you can inform them of this just to let them know you are educated in your consumer laws.

Guarded Secret #4: Many consumers don’t know anything about Statute of Limitations. This is the time period that any legal action can be initiated. Once the Statute of Limitations runs out your obligation to repay expires.

For example, you get a credit card and don’t pay the balance off and 10 years go by and suddenly you hear from a debt collection agency telling you they are collecting on this past credit card debt. They cannot legally collect because the statute of limitations has passed. Simply explain that the statute of limitations has passed and hang up the phone. No other explanation is necessary because the Debt Collector will know exactly what you’re referring to.

Each state has their Statute of Limitations, so you should check into your specific state information.

These are simple legal strategies that every consumer is afforded. No one is willing to tell us that most of our debt we do not have to pay back. We must educate ourselves and learn how to stay ahead of the curve. If you don’t you could be paying a lot more than you have to.

Don’t forget to check out part 1 of this article if you missed it.

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