Saturday, October 13, 2007

Junk Debt Collection, Posted by Robert Paisola

Junk Debt Collection----LIVE VIDEO AT
By WINK News
Story Created: Oct 12, 2007 at 11:16 AM EDT
Story Updated: Oct 12, 2007 at 12:17 PM EDT

Paying the bills you have is difficult enough, right? But one of of our viewers was hit by a collection agency and they demanded thousands of dollars. The problem is that the WINK-TV viewer knew the debt wasn't his!

So, he made a Call for Action.

Collection agencies are in the business of collecting debt and they will go to extremes to find the debtor. In that process you might be targetedCutting lawns is Donald Koch's business. And keeping track of his company's finances is important. So he was confused when he received three different letters from a debt settlement agency sent to his address.

He says, "The name, social security, the account numbers, I never had account numbers from this company so I knew they weren't mine. The name was incorrect --that's what caught my attention on these three that came to me in the mail the same day."The name on the bill was similar to his, but the debt but all the other information in the letters was way off. Call for Action checked on the company sending the letters.

RJM Acquisitions Funding out of New York buys what's called junk debt. Basically RJM buys delinquent credit card accounts that are at least seven years old.. That's debt credit card companies have tried to collect on, but have given up.

Koch says, "When I opened them up and one was $4,000 and the next was $4,000 and the last one said I owed $28,000 I sort of got a little upset with it -- knowing that I didn't owe this kind of money in credit card debt."And who wouldn't be upset? Donald Koch called RJM and proved the last four digits of his social security number did not match the person they were looking for, and after some discussion RJM promised he wouldn't be bothered again.

Collection agencies like RJM that buy "junk debt" can be aggressive in the collection methods. The key to dealing with these collectors is make sure that it is not your debt. If is your debt, try and deal directly with the credit card company and not with a third party. And make sure to check your credit report at least once a year to make sure you are in the clear.

If you are having problems with debt collectors contact Robert Paisola with Western Capital at or visit

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