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How to handle old or mistaken debts

Staying out of debt is a good thing; however, sometimes when old debts resurface, whether they were settled or not, making a payment may not be the right thing to do. Before making a payment on reappearing old debts, South Carolina residents may find these tips informative.

People who suddenly receive calls or letters notifying them to pay a debt may think that they should immediately make a payment to satisfy the debt collectors, especially if the debt collection agency employs high-pressure techniques to scare the person into paying. While some debts may be legitimate, others are not, and determining if the debt is legitimate is difficult, according to a Federal Trade Commission representative.

Old debts resurface when third-party debt collectors purchase them from creditors for a low price. These agencies then make a profit by collecting the debt, even if it is only a percentage. In some cases, the debt was one that the consumer forgot to pay a while ago. However, in other cases, the debt could actually be fraudulent charges via identity theft.

These types of errors are commonly made whenever information is lost by agencies who sell the debt multiple times. In fact, in 2015, the main grievance among more than 85,000 consumer complaints made to the Consumer Financial Protection Bureau was being harassed for debts people did not owe. Then, when a person makes a payment on such a debt, they can reset the statute of limitations, which can leave them open to a lawsuit.

Large credit card debts, car loans and home mortgages can quickly pile up and leave people feeling overwhelmed. A sudden job loss, serious illness or catastrophe could easily make matters worse. Those in similar circumstances might benefit from speaking with an attorney who could offer legal guidance about stopping harassing calls from credit agencies and stopping a home foreclosure.

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The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
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925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
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