Collections & Debt Negotiations
Anytime you stop paying on a credit card, car, telephone, utility or medical bill, it can be turned over to a collection agency within 3-6 months. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. First-party agencies are often subsidiaries of the original company the debt is owed too. Third-party agencies are separate companies contracted by a company to collect debts on their behalf for a fee. Debt buyers purchase the debt at a percentage of its value, then attempt to collect it.
Legally, a collection can remain on your credit report for up to 7 years and the agency can file a lawsuit within 6 years. If a lawsuit is filed, a judgement (with 12% annual interest) will be entered and can stay on your credit report for up to 10 years or more. Judgments can turn into wage garnishments and 25% of your paychecks could be deducted and sent to the creditor until your collection is paid in full.
We Help Protect Your Rights
Debt collectors are regulated by numerous state and federal laws in their debt collection activities. That's where our firm can help. Most people have no idea that there is a special law that was put in effect to protect consumers from collection practices violations.
Debt collectors cannot tell others about your debts, like your next door neighbor or your co-worker. Debt collectors also must be licensed in the State of Washington if they are collecting the debts of others. These are just a few of the numerous protections you have as a consumer.
Call us today to find out if your rights have been violated under the FDCPA and other consumer protection statutes.
LSI Credit Solutions is the only local credit repair company that will represent you and help negotiate settlements (saving you 30-70%) on verified collections. We will handle all phone calls and you will pay directly to the creditor. We also help with judgments and wage garnishments.