Posted on June 19, 2009 at 8:54 am How does the credit card collection process typically work? I am worried about falling behind on a couple of credit cards and want to know what I can expect if that happens. Thanks.

Posted on June 19, 2009 at 9:26 am While every account may take its own unique collection path, there are some general collection practices that most creditors use. For example, most creditors will attempt to collect the debt in-house for 6 months. After 6 months they must write the debt off to the IRS (by law), at which point the debt is no longer an asset to their books. At this point, they typically will assign the debt to a collection agency or send the account to an attorney's office for collection. Usually once the account has been sent to collections, the third party collector will try and collect in either 3 or 6 month cycles. If they are unsuccessful, they will either send the debt to another third party collection agency or law firm, back to the original creditor or at that point even sell the debt to a junk debt buyer. How long do you think you may have to fall behind for? Who are your creditors? That would allow me to perhaps offer some more detailed insight as to how they may collect on your debts.

Posted on June 29, 2009 at 12:12 am If ever you do fall behind, to the point that you're already getting collection calls- watch out for some collection agencies' hard ball/scare tactics. Learn about general FDCPA rules on debt collection. Some of which are:-collection agencies may only contact you during business hours, they're not to contact you before 8am and after 9pm. -they may contact people who know you only once and just to ask for your contact details. -they may not threaten you With regards to your debt:-5 days after they've contacted you, you should receive a written notice stating the amount you owe, your creditor, and what you can do to verify that debt-if they fail to do that, write them a letter telling them to stop contacting you (as they might not be legitimate collection agencies)

Posted on June 29, 2009 at 12:57 am the differences with collection processes may have something to do with the card issuer's  billing cycle. they vary from 25-45 days. Your payment is due 20-25 days after your billing cycle ends.

Posted on June 29, 2009 at 1:43 am Speaking of what to expect, a debt collection appears on your credit report, it  shows that you have been delinquent on an account, and that affects (will cause it to drop) your credit score especially if it is recent or if it continues to be unpaid or both.This negative effect can be lessen by paying the debt off but remember that as time passes, the collection account will have a lesser impact on your credit.

Posted on June 29, 2009 at 1:45 am There are also some creditors who transfer their accounts to their in-house collections agency after 30 days of non-payment, and to a third-party collections agency from 90 days up. If the debt is still uncollectible after 180 days, the creditor will charge off the account. When that happens, it will be reported to the credit bureau as a bad debt, and will remain on your credit report for seven years.

Posted on June 29, 2009 at 1:59 am so what happens if my account is charged off? are they still going to collect on it?

Posted on June 29, 2009 at 3:30 am Kylie, either one of these actions may occur:1. It may be transferred to a third party collections agency or the creditor's in-house collection agency.2. It may be sold to a "debt buyer."3. It may be forwarded to a state attorney.Of course, those actions are aside from what Purple Cow mentioned, wherein the debt will be reported as a "charge off" on your credit report, where it will remain for seven years. Only the passage of time will guarantee its removal from your file.

Posted on June 29, 2009 at 4:28 am If i'm not mistaken, when a debt has been transferred to a collections agency, it's possible that they may also add other charges on top of the loan--but that depends on state law, and on the written agreement between you and your creditor. You need to check your contract to be 100% sure.

Posted on September 11, 2009 at 2:29 am is there any way that i can have the calls stopped?