If you’ve received calls or letters from a collection agency about your credit card debt, you might feel overwhelmed, anxious, and ready to do whatever it takes to make them stop.
However, before you open your wallet, it’s crucial to understand why you should never pay a collection agency outright. Many consumers in New York and New Jersey have unknowingly worsened their financial situation by doing so, unaware of better alternatives.
The Problem with Paying Collection Agencies
Paying a collection agency might seem like the fastest way to resolve the issue, but it often does more harm than good. Here’s why:
- Legitimizing Questionable Debt
Not all debts claimed by collection agencies are valid. Errors in records, old debts beyond the statute of limitations, or outright scams are surprisingly common. By making a payment, you may accidentally revive a debt that was legally unenforceable. This is known as “re-aging” the debt, giving collectors a new window to pursue you in court. - Impact on Your Credit Score
Paying a collection agency doesn’t always remove the debt from your credit report. Instead, it could simply show as a “paid collection,” which still negatively impacts your credit score. Worse, by engaging with the agency, you risk additional reporting errors or updates that extend the debt’s visibility on your report. - Aggressive Tactics and Fees
Many collection agencies rely on intimidation and misinformation to pressure payments. Even if you negotiate, they may tack on fees or only apply payments to interest, leaving you in a never-ending cycle of debt. They may also refuse to provide clear documentation of how they calculated the debt or prove their right to collect it. - Legal and Financial Risks
Once you engage with a collection agency, you could unintentionally open yourself up to lawsuits or further collections. Without verifying the debt or consulting a professional, you risk waiving rights you didn’t know you had.
What You Should Do Instead
When contacted by a collection agency about your credit card debt, pause and educate yourself on your rights. It’s often possible to dispute or negotiate debts on your terms—but only with proper guidance.
Speaking to experienced collection agency lawyers or collection agency attorneys can protect you from predatory practices and save you money in the long run.
How We Can Help with Credit Card Debt
At our Law Office, we specialize in defending clients in New York and New Jersey against unfair debt collection practices, particularly those involving credit card debt. Our experienced team can help you challenge invalid claims, negotiate on your behalf, and ensure that your rights are fully protected.
With our assistance, you can take back control of your financial situation.
Call for a Free Consultation
If you’re facing relentless calls from collection agencies about your credit card debt, don’t let fear drive your decisions.
Call us today for a free consultation, and let us help you find the best solution to your debt troubles
Many cases are handled on a contingency basis, meaning you don’t pay unless we win your case.*
Sources:
- Debt.org – Collection Agencies
- Ware Law Firm – Why You Should Never Pay a Collection Agency
- SoloSuit – Should You Never Pay a Debt Collection Agency?
You may also like:
- Can You Sue Credit Card Companies? Here’s What You Need to Know
- How to Get a Credit Card Lawsuit Dismissed
- Statute of Limitations on Credit Card Debt in NY and NJ
* While we handle many claims on a contingency basis, no guarantee is made of a particular result. We evaluate each claim individually, and arrangements may vary – these will be set forth in a written agreement. We are happy to discuss our procedures and welcome any questions you may have.
Credit Card Defense 