From the desk of Century City McCarthy Law attorney, Vivian Lum:
There’s an old joke: a lawyer who represents himself as a fool for a client. By analogy, this article highlights the exact reasons why an individual should not try to settle their own debts with debt collectors.
One of the nation’s largest debt collectors, Asset Acceptance, has agreed to pay $2.5million as a settlement in a charge levied against them by the FTC, working in conjunction with the Department of Justice. Apparently, this unscrupulous company tricked individuals into reviving old debt where the company no longer could sue by offering to have the person make very small payments, thereby reviving the debt, among other tactics such as pursuing the consumer for 10 years or more. As part of the settlement, the FTC requires Asset Acceptance to notify the consumer of “stale” debt, requires them to notify the consumer when they report negatively about a consumer to a credit bureau and to conduct a reasonable investigation when an agency disputes the information.Asset Acceptance is just one of thousands of debt collectors out there. Just because they got caught does not mean other debt collectors are going to act in accordance with the FTC guidelines. If you decide you need help with negotiating your debt, contact a debt settlement attorney to help you. Don’t fall prey to these vicious debt collection agencies!