Example you owe a creditor $10,000 its 120 days past due...

  The Original Creditor
  has insurance (sometimes) and gets paid in full for the deliquent amount
  - and/or -
  writes it off on taxes (gets a tax break)
  = THE deliquent amount was PAID IN FULL
  [then the creditor]
  Sells the deliquent amount to a colleciton company for
  pennies on the dollar

The 3 credit bureaus now report it, damaging your credit.

XYZ Collection buys $1000 of the $10,000 for pennies they probably pay $100.00
  that leaves $9,000 out there of the original debt
  XYZ collects $10,000 plus interest and fees i.e. $12,000 = THEIR HUGE PROFIT!

Every 2 1/2 years collection companies will sell the rest of the debt to another collection company see below...

XYZ Collection buys $1000 of the $10,000 for pennies they probably pay $100.00
  that leaves $9,000 out there of the original debt
  XYZ collects $10,000 plus interest and fees i.e. $12,000 = THEIR HUGE PROFIT!

This cycle will continue for the rest of your life.... that's why you need credit repair!

Do you see why you never want to talk to a collection company?

Read more..

Email from to a client: 

"Wow I can’t believe you still are believing the stuff on a credit board and an attorney who probably never studied in credit repair.. I have a new client like that every day she calls us because she has talked to a new attorney, or a credit board, or a friend with mis-advice.

Did you not here my story? I went through debt consultation and they paid my collections but didn’t tell me the truth of its ill effects. So then I ended up owing them again ever 2 1/2 years because it was resold. and my student loan was resold after I paid if off with one agency, then the fed dept of education bought it last year 20 years later was the first time i got my income tax back, also another collection company garnished my wages..

This comes from our credit repair attorney’s Office:
“I keep seeing posts about collection agencies trying to collect debts and it cracks me up. When you know your rights they become a big joke!!!

The first point about collection agencies is that you NEVER talk with them - EVER. Period. Here’s why. You have no debt with any collection agency. You have not agreed to the “assignment” of the debt in writing or verbally. You have not received goods or services (consideration) from the collection agency.

They’ll want you to think you owe them, but you don’t. In fact, once you get a “collection letter” you should NEVER talk to them. The only way a collection company can collect one of your old debts is if you allow it. You can allow it by either agreeing to the assignment in writing, or by making a promise to pay them something. (One client told a collection company “O I know about that debt, or I cant pay that right now but I will later “  They just agreed it was there’s and the collection company came after them) By doing that, you have, in effect, given them permission to collect it. See why you’d never talk to them no ever write them!!!!!!!!!

They have only purchased part of the debt. So when you pay it, you give them the right to collect all of it. That means once you pay, they will not remove it, it shows as paid, but to show paid they remove the old, and repost a new dropping your credit score 30-80 points. Then in 2 1/2 years they resell the rest of the debt to another collection company and your stuck with it for life!

So go ahead and take everyone elses advice and hurt your credit worse, the only one laughing is the collection company and the credit bureaus.”

If you don’t believe me (John Doe) , I am just trying to help you in the right direction but I see you decided not to take expert advice and proceed your own way too early anyway so maybe reading another account of someone and what they now can’t do to erase their mistake of paying them. http://www.moneytalksnews.com/2010/02/18/i-paid-the-collection-agen...

But you are your own person and can do what ever you want to do, and follow advice from the credit boards that are owned by the very agencies you are disputing with - think they are going to tell you the right thing ? If they are so correct then why is there so much opposite information out there from experts?

I pray you do the right thing and don’t hose it up even more... My credit is still royally a mess from my mistakes of paying collection companies.. and now the only thing that will help invest $5000 in to some seasoned tradelines hoping that will help me be able to get credit.

Hope you make the right decision, and use credit repair!"

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We help people from all walks of life improve their credit and give them access to new lines of credits and tradelines. As know the industry is taking credit away from people, credit card companies are closing accounts, and this effects the 40% of your score. We can help them open more tradelines - no restrictions, guaranteed approval. Most of all we can help you with those problem items on the credit reports that is keeping you from getting approved.

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