Debt-Collections-Bankruptcy-Computers-Credit

I had to declare bankruptcy in 2003. It was a need because the debts had taken over my life.

It started with a back injury in 1978. There wasn't much that could be done for my injury, and I was no longer viable for a long-term job. I didn't use drugs, but did other things to "self-medicate" the pain away. As a result, I didn't get better, and the injury was allowed to progress until I was totally disabled, in 1999.

Social Security didn't want to pay for me for the rest of my life, so they kept denying me the benefits I now know I should have had then. I'm now in the holding pattern to get them.

Anyway, the medical portion of my debt load grew to about $20,000. There was a little consumer debt, but not much because nobody would give me credit.

Things got really out of hand when the collection agencies got hold of the debts. By the time I finally went bankrupt, there was over $91,000 of debt. I've already told you how much I actually accrued.

The rest was the reselling of debt portfolios over and over again.

Since the debt had been reported to the credit reporting agencies by the collection agency, when the portfolio was sold, the debt stayed on my credit report - and got reported again and again and again.

Instead of my debt-record (credit report) showing only one occurrence of each debt, it showed the same debt over and over again - once at each collection agency. This reselling of debt ballooned everything out of proportion.

This really messed me up! The results --

* I couldn't get a job, because employers thought I might be inclined to steal - me???
* I couldn't get an apartment because I couldn't be trusted to pay my rent. Yeah, it got that bad.
* I couldn't get utilities in my own name.
* I couldn't get a bank account.
* I couldn't pay for my own car insurance because the premiums were unreasonably high due to my credit - not my driving record.
* I couldn't afford credit accounts, since the interest rates were unreasonably high.
* I had to pay cash for everything - including a car purchase.

So, the collection agencies continued to sell the debt portfolio, regardless of the standing of the debt. When they found an uncollectable debt, they just ignored it. They didn't clean up their database, they just passed it on to the next company, making money on the sale, even though half or more of the data they were selling was bogus.

This is just bad business!

EXAMPLES:

I was divorced in 1991. I took my name back in the divorce, but continued to use my married name until 1993, the year before I graduated college. I continue to get calls from collectors for debt apparently from 2005 or so that is in the old name. Now, for one, the bankruptcy was in 2003, another is that I no longer use that name. I don't even live in the same state anymore! How could I possibly have incurred the debt?

I got a call for my ex-husband's first wife. Now, how is it possible that a woman I knew to nod at, would be 2500 miles away at my house, and accruing a debt that has gone into collection? My house isn't that old! I was here when we broke ground.

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The collection agencies are out of control. Everything is computerized and nothing is real anymore. At the very least, there should be a national database for debt collection, just like there is for Bankruptcy.

I don't mean that the local agencies should be abolished, although most of us might like that idea. I mean that any debt that is reported for collection is given 60 days at the agency, and then must be reported to a national database. After the initial 60 days, it cannot be reported again.

That means that a collection agency cannot change the account number to some in-house reference number and report it again to another collection agency. The agency cannot sell the portfolio to another collection agency - national or local - using that new number. Debt should only be reported to a collection agency by the original debtor.

If a collection house wishes to pursue debts in the national database, they are welcome to do so, but a debt can only be collected by one collector at a time. If the file is out to one collection house, it cannot be pursued by another collection house.

I've gotten calls from 3 agencies within the same 30-day period, for the same debt account, demanding full payment for the original amount of $12.13. Believe me, I'd already paid the original debtor that $12.13, so these calls were all really bad timing!

If nothing else, the debt collectors should check the national Bankruptcy database and see if the debt is listed. I can't tell you how many times I've had to tell somebody that a debt was discharged in such-and-so Bankruptcy action in 2003.

I would love to hear what other folks have gone through on this. It's time to reign these guys in!

I have NO debts in collection today, just to make that clear.
I'm not harping on any one company.
This is a policy change that needs to happen.