Collection companies are organisations just like other, most buy unpaid debt from the initial creditor for a portion of the original amount owed then try and collect as much as possible from you.
If you had an overdue credit card balance of $2000, a collection company may purchase it from the creditor for $400 and will attempt to gather the full amount from you. This is often the reason for the constant harassment from collection agencies.
It is necessary to understand that you have personal rights in reference to how debt collector communicate with you in reference to any debt. They should follow these laws and you likewise have the right to sue them if they don't.
When you advise them to by putting it in writing, a collection agency by law can not call you before 8.00 am and after 9.00 pm and need to also stop calling you. It is also possible to eliminate collection accounts from your credit report.
In order to do this it depends upon the stage of the collection account, if its older than 7 years then you can have it eliminated with a basic letter to the credit bureaus. If its an account where the collector is still calling you, you can negotiate a lower payment in exchange for them erasing it from your report.
It is very important that you get this in writing PRIOR TO you pay them any loan. Remember that they bought the represent less and this will likewise allow them to settle the account for less than what you initially owe on it.
See Bad-credit-repair-tips. com to find out more about do-it-yourself-credit repair work, credit repair work services and the best ways to raise your credit score 200+ ZFN and Associates points to get approved for house, credit and cars and truck card loans.