How Do I Deal With a Collection Agency for a Bill I've Paid?

Here I answer a question submitted by a DebtConsolidationCare.com reader who wants to know how to deal with a collection agency who is trying to collect a bill that's already been paid:

Financial Self-Defense: Arm Yourself Against Identity Theft Crooks

A decade ago, a thief walked into the offices where I was working in Washington DC and, in the middle of the day, walked out with several computers, a television and a VCR. One of the offices hit was just two doors down from where I sat working, oblivious to the heist. The experience left everyone in the office unnerved. How could someone have pulled off that crime right under our noses? Why weren’t we paying better attention?

I imagine identity theft victims often feel the same way. Many probably question whether they could or should have been more vigilant.

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New IRS Policy Makes Tax Liens Less Taxing

Last year I wrote about how the IRS policy on filing tax liens unfairly hurts taxpayers and small business owners. Tax liens are truly a double whammy. Not only do you owe the IRS (which is bad enough) but you may also find your credit destroyed for years by a tax lien on your credit reports.

This time, I have good news: the IRS is implementing new policies that ease up on tax liens. This can make a tremendous difference for millions of Americans.

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What Can Debt Collectors Say On Answering Machines?

Talk about an uncomfortable situation. A reader recently contacted us about a message she found on her answering machine. The recorded message was regarding a collection for her father who does not live with her:

Dear Gerri,

I’m very concerned that a debt collector may have broken the law. Long story short, I recently received this message from a debt collection company.

I’m concerned because this message wasn’t for me—it was actually for my father, who lives in another state. As far as I know, under the Fair Debt Collection Practices Act, debt collectors are only allowed to contact a relative or neighbor once in attempt to reach the debtor… but I was under the impression that legally, debt collectors are not allowed to share “why” they’re calling (in an attempt to collect a debt) unless they are speaking to the actual account holder, right? My father would be mortified if he knew that I knew he were having financial problems. Did this collector break the law?

— Cindy (A Concerned Family Member)

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1099-C In the Mail? How to Avoid Taxes on Cancelled Debt

If it’s been a rough couple of years for you, you’re not alone. Maybe your income was cut, you lost your job, or you had large expenses like medical bills. You may have fallen behind on bills, fielded collection calls and managed to settle some of your debts for less than the full balance you owed. You’re hoping the worst is behind you.

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House Committee Aims to Gut Foreclosure Protection Measures

The House Financial Services Committee today will mark up four bills designed to gut foreclosure prevention programs. No other legislation is being proposed to fill the gap and help the estimated five million mortgage holders at risk of losing their homes.

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Industry Group Brings Together Debt Relief Factions

If you are deep in debt, and plan on looking for a solution, be warned. Not only do you have to sort through all the competing companies clamoring to help, but you may also stumble into a “War of the Roses” of sorts among the competing factions in the debt relief industry.

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IRS Eases Up on Tax Liens: Good News for Credit Scores

Finally, some good news - make that great news – from the IRS. They are lightening up on tax liens. As I’ve written before, the IRS’s draconian tax lien policy has ruined millions of Americans’ credit ratings, and probably made it even more difficult for them to pay the debt they owe to the IRS.

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Get Your Free Reports from Specialty Consumer Reporting Agencies

Most people are aware of the fact that you can get a free copy of your credit reports once a year from each of the major credit reporting agencies: Equifax, Experian, and TransUnion.

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Reader Question: Medical Bill In Collections With No Warning

A reader sent in a question about a medical bill that went to collections without her knowledge:

I received a notice that I was in collections for a medical bill. I never even knew this bill had gone unpaid! I had paid all the bills I received for this procedure. I called the hospital and they told me there was nothing I could do about it. This is going to ruin my credit scores. What can I do?

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