Medical Debt: Most debt has a statute of limitations which means at some point it becomes legally uncollectible. Debt collectors can continue to pursue payment but have no leverage.
Junk debt buyers may be engaging in phantom debt, collecting payments from consumers for debts that are nonexistent. or illegal to collect.
Medical debt collectors looking to collect on older accounts often don’t have any documentation to prove you owe the debt. It’s important to challenge medical collection accounts. If you want to pay, contact the original medical provider.
You have the right to stop the debt collector threats and stop debt collectors from calling and writing you. But that does not eliminate the debt.
Proceed with caution if a debt collector calls you out of the blue. It may be a scam collector especially if they threaten arrest, legal action or wage garnishment.
If a debt collector cannot provide debt validation, you may be able to negotiate a reduced settlement of the debt, or even eliminate the debt in full.
If a debt collector charges high interest, review your state debt collection laws along with the Federal FDCPA which puts limitations on debt collectors
Collection agencies that sell a debt should delete their negative notation to avoid multiple debt collectors reporting simultaneously for the same debt.