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STOP PAYING COLLECTIONS 2022 & CHARGE OFFS | CREDIT BOOST BUREAU DISPUTE | PERFECT CREDIT RECIPE - YouTube
Channel: Life With Jazzy Mac
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family it's your girl Jazzy Mac and I am聽
here to tell you why you need to stop paying
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your collection account
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yes you heard me right i said stop聽
paying your collection accounts
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and trust me people my credit score is in the聽
800s and this is the same exact strategy that
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i use when i've raised my credit score so listen聽
up people the reason why i am telling you guys to
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not pay your collection accounts is because there聽
is a very very common misconception that if there
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are collection accounts on your credit report that聽
all you have to do is pay it off and then it's
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going to boost your credit score your credit score聽
is going to magically increase when you pay off
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your collection accounts i'm here to tell you聽
that according to the fdcpa laws and according to
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the credit reporting system of scoring that is聽
not how credit works and i will tell you why
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anytime you have a collection account on your聽
credit report that account is going to have the
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same weight or impact or your score no matter what聽
the balance is so whether you have a five thousand
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dollar collection account on your credit report or聽
a five dollar account it's going to have the same
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impact so the reason why paying it off doesn't聽
make sense and it doesn't help you is because
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once that account is reported as being in聽
collections even if the balance shows zero
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that derogatory remark is still going to聽
be attached to your credit score and it's
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going to still be listed in your credit history i聽
have made the mistake of paying a collection item
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and thinking that it was going to raise my score聽
and it didn't um i at one point you know assumed
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that if i started making monthly payments on it聽
that that would give me some type of positive
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history and that's not true either you're looking聽
at a person that had a credit score in the 400s
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not that many years ago okay and聽
it's now in the 800s so trust me
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when i tell you i know what i'm talking about聽
i've researched this i have my own credit academy
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i have all the templates that i used聽
when you know i've raised my score so
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trust me when i say stop paying collections聽
now i'm not telling you to stop paying your
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credit card bill every month or to stop paying聽
your card note because that's going to only make
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your credit worse what i'm saying is that if聽
you owed someone let's just say you owe publix
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you owe public some money and after a while you聽
didn't pay public so public sends that account to
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an outside collection agency to collect that money聽
well at that point they've sold the debt to that
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collection agency and what essentially happens聽
at that point is you no longer owe publix you now
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essentially owe the collection agency and let's聽
do a little bit legal diving now your contract was
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with publix you are obligated to pay publix now聽
there may be some sort of addendum or some terms
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within the contract that says we will refer this聽
to an outside collection agency if payment is not
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received or you know satisfied or whatever and聽
that's fine they can say that there it is their
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legal right to list that in your contract however聽
there are still federal laws the fdcpa laws that
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supersede anything that is written in a local聽
contract between a business and a consumer
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so what i mean by that um if dcpa has laws聽
that state how much a collection agency can
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collect um and in what time frame they can try to聽
collect that money and things of that nature so
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i'll give you an example when i was living in聽
alabama i live in atlanta now of course when i was
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living in at alabama there were you know certain聽
collection accounts that i'd acquired you know
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not knowing how to take care of my credit this was聽
when i was super young so i read up on those laws
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um and this was me just doing google searches or聽
whatever but i read up on the laws and i saw that
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the amount of um collection fee that was being聽
attached to the original debt that i owe was
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illegal i think um you know and all you know聽
different states have different laws but you know
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let's just say for instance um the law in your聽
state is that a collection agency cannot add on
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more than 20 of the account balance um when your聽
account is referred to them so that means you know
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maybe your medical bill was a thousand dollars you聽
didn't pay it it got sent to a collection agency
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and 20 of that would be 200 which would mean that聽
the maximum that they could bill you for as a
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collection agency is twelve hundred dollars right聽
well there are some collection agencies that will
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push the envelope and instead of charging the聽
legal twenty percent they might try to charge
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33 percent in collection fees which means that you聽
owe the thousand dollars and they're charging you
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333 dollars you know 33 percent just to send you聽
a couple of letters demanding payment that's not
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legal if the contract terms that you originally聽
signed said that you were going to pay 20
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then that's what they have to honor um even more聽
so some contracts will leave it very bland where
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they will say well this account gets referred to聽
a collection agency then they have to pay you will
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be obligated to pay whatever the collection agency聽
charges and wrong in my donald trump voice simply
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because when they leave it vague like that what聽
did we say the fdcpa laws supersede anything that
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is in a contract between a business and a consumer聽
so this is to protect the consumer from basically
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becoming a victim of the collection agencies聽
because that's how a collection agency makes their
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money they buy the account from someone and then聽
they tack on their fees to collect on that account
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and that's how they get rich and i personally was聽
not going to let them get rich off of me so in one
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instance i actually paid a debt um that i you know聽
that my health insurance was supposed to pay and
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that debt was thirty three hundred dollars and you聽
guys some of you guys read about that in my blog
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and that debt was thirty three hundred dollars聽
when i went and i've read those laws and
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discovered that the collection agency had charged聽
me 33 percent to collect that amount oh y'all
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i had my pen and my paper ready not only did i you聽
know of course i disputed it but i also put in my
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dispute letter that you know according to the fda聽
cpa laws you're not allowed to charge this amount
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and that line alone invalidated the entire聽
debt so while it was like you know a debt
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that technically belonged to me and while it was聽
something that was actually like a legitimate debt
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because they charged me an illegal collection聽
fee to collect that debt it invalidated it
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so when i paid it it's not like they can聽
just refund back the portion that i owe
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like they had to refund back the entire 3聽
or i would have had a basis to sue them so
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either way i would have got paid but you know聽
that's why i say don't let anybody trick you
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into saying if you pay your collections聽
then your credit score is going to shoot
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up no dispute it because if you dispute it nine聽
times out of ten especially if you dispute it by
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mail it's going to get deleted off your report聽
because people don't you know necessarily
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okay let's say like this you only give the credit聽
reporting agencies 30 days to validate a debt by
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law if they can't validate it in 30 days they聽
have to delete it now of course if you do it
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online you can sometimes go to quicker you聽
know like you can submit the dispute quicker
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and somebody investigates it quicker but usually聽
they're just sending it through an automated
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system that is going to say yes this is a valid聽
account most of the time have i gotten stuff that
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you know like if i submitted a dispute online聽
before have i gotten things deleted yeah sure
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but i'm just telling you the surefire way聽
is to dispute it in a way that's going to
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require a human to do work and when you mail in聽
your dispute letter of that collection account
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you're making somebody have to go and research聽
if this payment amount is correct if the date of
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the account was correct if the name on the聽
account is correct they have to go and validate
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that like they have to you know usually get聽
some sort of documentation from wherever the
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account originated from and that requires them to聽
either mail letters to people or to call people
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um because they have to physically you know have聽
that right evidence because usually that is what
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they will pass along to you to say well this is聽
how we validated the debt so you always want to
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put in your letter you know put your name date聽
of birth social and the account number and you
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want to be very specific and say please validate聽
that this this debt belongs to me and please also
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show me the original contract now that's the line聽
that gives them that's usually what trips those
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people love when you are disputing something聽
and you say show me the original contract
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because 90 of the time when companies sell a debt聽
to a collection agency they don't always send the
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paperwork with it meaning they don't always聽
send your original contract agreement so that
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is a good way to trip them up because if they聽
can't send you you know that original contract
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agreement or they can't send you uh proof that聽
you signed off on that contract well guess what
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you got to delete it so for all of you that have聽
those outstanding debts it's great that you want
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to pay them but understand that paying them won't聽
increase your credit you want to have it deleted
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so if you want to pay them you can always ask for聽
a pay for a deletion at the company where you say
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hey if i pay this you'll send me a letter saying聽
that you agreed to delete it from my credit report
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i'm telling you 95 of the time that's not gonna聽
happen it's they consider it more paperwork that's
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not something collection agencies are interested聽
in doing um and also collection agencies also
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have a um they have an agreement with聽
the credit reporting agencies as well
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and the credit reporting agencies like equifax聽
experian and transunion they actually make
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money um to be in businesses you know with these聽
companies so you know it's just all a big business
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just you know all the big scam or whatever you聽
want to call it so yeah stop paying that stuff
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you need to dispute it and aim to have it聽
deleted now don't think that just because they
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um send you back some validation you know letters聽
saying we validated this debt that that's it no
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you have a legal right as a consumer to dispute聽
something as many times as you feel like it
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i personally would not dispute more than like four聽
or five accounts per month um if you have more
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than that i would keep it at four or five because聽
you don't want to be like this frivolous disputer
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and you don't you know just want to appear聽
fraudulent in what you're doing but i'm telling
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you that it is your consumer right to say hey this聽
account doesn't look right to me i need you to
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send me the original agreement this works great聽
for collection accounts accounts that have been
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charged off to collections now if this is like you聽
know for a current credit card that you have where
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the accounts like open and you know whatever聽
the process will be a little bit different
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um but it's always easier to get collection items聽
deleted because you know paperwork gets lost
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people don't want to actually research it somebody聽
at the credit reporting agencies you know that
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experian can easily say i got too many letters聽
in front of me i can't find this information
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just delete delete delete there's been times聽
where i've literally had five accounts deleted
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you know i put those five accounts in my dispute聽
letter all collection accounts and they came back
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less than 30 sometimes they come back in less聽
than 30 days where you know you get a letter
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saying okay this account has been removed this聽
account has been removed from your credit file
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and of course they can never be you know um added聽
to your account again so that's how i saved money
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that's how i save thousands of dollars and that's聽
how i've raised my credit score i i exercised
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my legal consumer right to dispute things that聽
didn't look right to me even if it was just off by
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a nickel if i thought my balance was supposed聽
to be a thousand dollars and 10 cents and you
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put a thousand dollars and 15 cents well that聽
gives me a basis to dispute it if you spell my
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name wrong on something that gives me a basis to聽
dispute something and as for the originally signed
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contract agreement so you guys i hope this helps聽
you out if you've ever tried these methods please
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let me know down below i'm happy to put the聽
templates for dispute letters down below for
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you guys as well because i just want to help聽
you guys out and i don't want anybody to be a
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victim to this system any longer so you guys聽
definitely like and subscribe for more videos
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so you don't miss out i mean it's the start聽
of a new year you guys so everybody wants to
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get their credit on point and i'm here to show聽
you how to do it in half the time so check out
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my other videos where i talk to you about quick聽
tips on how to like instantly raise your credit
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so guys that's all i have for you i hope everybody聽
stays safe until the next time see you later
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you
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