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Collections on old debt in Kentucky

Many Kentucky consumers find that they allegedly owe money for transactions that they do not recognize or do not remember. In many cases, the consumer never received a notice of a bill before the company placed the account into collections. This can happen for a variety of reasons, and the Fair Credit Reporting Act does not require all companies to inform the consumer when they are going to place an account into collections.

A lot of these companies simply place the accounts on the consumer's credit report and wait for the consumer to pay it. They call this practice parking the debt, which allows them to collect on the debt when the consumer attempts to obtain credit. This is very common for smaller debts because it eliminates collection expenses. Paying off these old debts will not normally remove them from the consumer's credit report, but the consumer can make an agreement with the company to remove it as a condition of paying it.

Consumers should always review their credit reports regularly to ensure that no unknown debts are on them. If they locate any unknown debts, the first step is to dispute them through the credit bureaus. If this does not work, the next step is to contact the collection company and dispute the charges. The collection company can send a verification of the debt if the consumer is unsure about it.

When facing a large amount of credit card debt, consumers should consider all options for handling it. In some cases, simply negotiating with the creditors may result in reduced interest and more affordable payments. Since each case is unique, the same course of action that worked for one consumer will not always work for another. An attorney could explain the benefits of bankruptcy and advise whether it is the right choice for the consumer's situation.

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