– Up guys, it’s Ray
comin’ back to you again with another video regarding credit. And here’s where I keep
it real credit-wise. A little background information on me. I used to work for a
credit restoration company by the name of Buildworth Strategies. They’re located down
here in Miami, Florida. They’ve done great work
and I got to help a tremendous amount of
people in my local area obtain their new homes,
their dream cars, boats, you name it, I’ve been
able to help people a lot. Still to this day I’m
just thankful that I get phone calls and text messages saying just, thank you for helping me out. So this is the purpose of these videos. I wanna continue to provide to you guys tips and information
regarding credit because, at the end of the day,
it is a thing that if you understand it correctly can help you out and obtain your new home, your new car, whatever it is that you’re
tyrin’ to do with your credit. So today’s topic is
gonna be about something that I hold very dear in
my heart, sensitive to, because I’ve seen it hurt a lot of people, a lot of families,
including me in the past when I knew nothing about credit. And that is, specifically, on
paying collection agencies. You should not do it,
I don’t care who told you to do it, do not do it. And in this video I’m
gonna explain to you why. So one of the reasons and why I say do not pay collection agencies is because for one, all they’re tryin’
to do is get your money. And this is exactly how they do it. Let’s say you owe a company,
what’s a common one? Like T-Mobile. Let’s say you fell on hard times, it happened, we’re all human. And after six months
T-Mobile then charges off your account and sells it
off to the highest bidder, which is a collection agency. Key word charge-off. What charge-off means to
the company of T-Mobile is that their finance
department puts charge-off, and when they file taxes
at the end of the year, that’s like a loss to them. So that’s what they have to put down, and they report that to the agencies because it’s what they’re required to do. The highest bidder
collection agency then pays a portion of the total amount owed, pennies on the dollar,
and they obtain that. In turn, they call or
harass you multiple times in multiple ways until
you pay ’em the money. Just to keep things
simple, let’s just say that your bill was a total of $200. ABC Collection Agency
bought that debt from T-Mobile for, let’s say,
$20, because it is a percentage of that whole amount. So they bought that debt for $20, and here goes ABC Collection
Agency going to call you. Here’s what you don’t know. ABC Collection Agency has to
call you on the other end. If you go ahead and pay
$200 when they bought that debt for $20, they made
a huge profit off of you. And this is how collection
agencies stay alive, stay profitable, just doing that. But here’s what you don’t know. In order for a collection
agency to collect from you or go after you legally,
you first have to admit to the debt over the phone or by letter. This is why all their
phone calls are recorded, because with a recorded
line they got you on tape saying you are who you say you are. This is another thing that you don’t know. Legally, you did not sign a contract with ABC Collection Agency. What I mean by that is
you did not get services, telephone services, from
ABC Collection Agency. You got it from T-Mobile. But since T-Mobile sold your account off to ABC Collection Agency, T-Mobile has nothing to do with your account at all whatsoever. So what happens is is that
because you don’t have a signed contract or an
agreement between you and ABC Collection Agency,
that gray area says, well, who says you owe them? What I mean by that is,
unless you admit to the debt over the phone and when they ask you, are you John Smith, and
you say yes over the phone, I am John Smith, then they got you. But if you don’t say
anything, then they can only assume that they got the wrong person, because I’m pretty sure
you’re not the only person in the whole entire world
with your specific name. All right, guys, and
another thing that you guys have to pay attention
to it’s something that’s called the statute of limitations, and this varies from state to state. Basically what that means
is, in the credit world, is statute of limitations is how long of a timeframe does that
collection agency have to go after you legally at full force. After an account here, I think, I believe, depending no what the
account is, is five years. Then after that you’re not
obligated to pay that debt. If you pay attention,
if you’re still getting collection letters to
this day from an old debt that you know you had,
there’s gonna be language on that document that’s gonna say, you’re not obligated to
pay this debt because this has passed the
amount of time allotted by your state, or something
along those lines. Just make sure you look for it. They put it in really small
words because, obviously, they don’t want you to
notice it, but it’s there. If something has passed
more than five years, and now you go ahead and pay it, then that account will
restart for another seven years and remain on your credit report. Because a collection account,
whether it’s paid or not, is still negative, then
it will count negatively against you and by then
it’ll be very hard to remove that account because, in a sense, you’ve kind of admitted guilt towards not paying a bill of some sorts. What I’m tryin’ to say is is
that if you pay a collection account it’s bad, because
it will remain anyways. And if you don’t, it’s bad anyways, it can’t get any worse than that. If you want to spend money
with the intention of removing a negative item
from your credit report, you might as well do
your research and hire a very good, reputable
credit restoration agency. I’ll leave you the link
and the information of the one that I used to work for, which is located here in Miami, Florida, but they have clients
from all over the nation. I don’t work for them
any longer, and again, still do your research
and hire one that’s, benefits you the most. But in a sense, what I’m telling you is, do your research, don’t be so overwhelmed on paying these accounts because it can hurt you in the long run if you do. I’ll put it for an example. If you get a speeding
ticket and you just go ahead and pay for it
with the intentions of, oh, I guess it’ll go away. When you go get car insurance
and they run your record, it’s gonna show that
you were speeding at a such a day, such a time, and
that right there stays for, I believe, in the state of
Florida is like five years. That right there is gonna
raise your insurance rate. The same way with credit. Even though you have a
paid collection account, it’s gonna raise your
interest rates on whatever it is, whatever else
that you’re tryin’ to do. So you might as well go fight it. If the state has nothing to prove to it, then that goes away. That alone right there’s gonna help you save a tremendous amount of money. All right guys, so I’m
only giving you this piece of information
because the end of the year is about to come, Christmas, Thanksgiving, tax season, and you guys are about to get a huge amount of money. And the first thing that
you guys are gonna do, and I’m tired of seeing
it, is that you guys go spend all this money
on collection agencies. At the end of the day, the
items will still remain on your credit report
and still continue to negatively affect you,
holding you back from obtaining your dream home, your dream car, or your dream whatever it may
be that you need credit for. Save your money. Don’t pay a company that
you don’t even know exists. Don’t pay a company that
you’ve never contracted for for any kind of
services at all whatsoever. Don’t be quick to spend
your money on a complete stranger that’s calling you over the phone that their only purpose is to take all your money from you. And they can care less about how you spend your new years, out in the streets, or not being able to feed
your kids or your family. This is something that I hold
very, very near to my heart. I’ve seen it affect a lot of people. It almost affected me. I’ll make another video
regarding my specific story and how I was able to overcome that. I don’t believe in no collection agencies. If you are gonna pay some money, either pay a credit restoration company, do your research on them, and make sure they do the work for you. Again, I’m gonna leave the description to the one that I used to work for. They’ve done great work
and I was able to help a tremendous amount of
people through them. But don’t be so quick to spend your money on collection agencies that’s not gonna help you out in the long run. If you are gonna spend some money, again, do your research on a
credit restoration agency, or if the account is still
with your original creditor, they’re still with that
main company before they send it off, negotiate with
them and pay them directly. Don’t go ahead and pay a company you’ve never heard of before and affecting you way more years ahead of you. All right, guys? If you want me to still
continue to make more videos, I’d be happy to, I like doin’ this, and I’ll still continue to keep it real.

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  1. Hey Guys! Thank you so much for watching. And if you would like to talk more regarding your credit Feel free to schedule your free evaluation with me by clicking this link : I look forward to speaking with you soon!

  2. One's duty is to pay the original creditor. If the account does go to a bill collector, it is too late to pay the original creditor. Even if you pay the bill collector in full, you did nothing to make amends. You merely gave money to a third party who has nothing to do with you.

  3. I went through a divorce. At first the time I offered my now ex to either stay in the house or I would be willing to do my best to make the mortgage payments. I am existing from a disability income after being shot two times by an active shooter when I was 19. She chose to stay in the house. She lived there for 6 years, last summer I found out from my eldest son that her father had bought her a “new house” and she was gone…after living in the house for over five years, no warning no nothing…in fact she had already moved out. I’ve never been called, emailed, mailed in any way, any information from the lender, which lent the loan in only my name except the last page in which she signed. Now, as of last week I learned through my credit report that I’m in over 100k in debt on a house I didn’t live in, that she was living in up to and nearly two years after our divorced was legally finalized. Also, her father did “renovations” to the house that actually lowered the value of the house so that it was “upside down” aka the value of the home is now less then what is owed directly due to his “renovations”. This atop over 35k in medical bills due to insurance not covering many things ultimately a result from being shot by a very sick man and a bullet that still lay in my back to close to spine to be removed. What am I supposed to do? I’m in uncharted waters and feel I have no recourse.
    Subbed & a big thumbs up.

  4. You're giving bad information to make money for your credit repair gig, where you're paying someone to do what you can do yourself. All they do is dispute everything and hope some will get removed. In many cases you can make arrangements to pay what you owe before it goes on your credit. Credit repair companies are the biggest rip offs.

  5. Never answered the phone they ended up catching us outside her house and serving us with papers native skull Court had to pay

  6. So I been watching your videos for awhile now so I did what you guys are saying about not pay the collection agencies now they took me to court and a judge ruled on their favor and wipe out my bank account by a court order so can you please explain to me what happened

  7. and.. when you least expect it, some Dr is gonna say you owe him money from a past debt while you're under anesthesia, and he's gonna collect with a few extra parts you didn't need. These guy's don't play by our rules.

  8. If the collection/ funds of the goes to the irs and then irs ask you pay the debt. How does this after your credit and does it come off after paying the irs? @keeping it real with credit

  9. This was extremely informative and helpful for so many I’m sure.
    Thx so much. After the loss of my 23yr old. I lost my way.
    Now I want to reclaim my life and I don’t even know where to begin.
    Pls consider these to be topics of some of your next vlogs. And after one has already tried any government relief, help from f&f or co-signers… it’s a joke
    For Single Woman, Mom, elderly or on fixed income like disability, homemaker etc. where to start?
    Credit is bad and goes back 4 yrs. car insurance rates will be high. Need car now…not enuf disposable income to buy out a used one. Nor can I get a loan due to the SSDI and my small home business isn’t profitable yet to rely on that income. Need car to get pt job to get loan cause there is no public transportation . Need first mo rent and SD for the only affordable place I can find. I need all of this ASAP cause I can’t focus or save in my current living situation . And also have old electric bill that needs to be paid To get new place. Was trying to fix credit only to get bombarded with robocalls and mail on old debt.
    So basically where do I start? Where does my limited income go first.?
    Lots of topics here . Hope you can talk about them.thx

  10. TLDR version:
    Your collection agency isnt the person to whom you owed money. Your debt was written off by the original lender, and they are just trying to rip you off.
    Dont answer random numbers.
    Dont pay a debt, even a little, as servicing the debt can be legally binding and remove statue of limitation.

  11. One tried to scam me the other day. I got a voice recording say you have been verified by your drivers license. Called out my number said I missed a court date and was being served a bench warrant and suspension of license. I called the courts because I knew I hadn’t been served anything. There had been no court date. They went buy the name of county services mediation group. They don’t exist. And the contact number of course is a non-fixed voip . My debt is 10 year old 4 years passed time barred.

  12. Just saying your name is it not enough for them to validate your debt. If you do happen to answer a call always saw throughout the call “I am not aware or agree to this debt”

  13. What ur saying does this apply in Milwaukee Wisconsin? I would think years might different in states but the basic like admission you are who their looking for or making payments then your owning to them. I understand what you say you pat still shows bad credit. What about if your on social security can they touch ur money?

  14. The #1 way to avoid collections is to avoid debt. Live within your means. Create a budget. The only thing you should have a loan on is your house. And you should pay that off ASAP.

  15. I the end, if you are dishonest and stiff people who helped you, you are a scum bag and will always know it inside.
    To be happy, live with honor and always pay your debts. bad advice from this boy.

  16. Never do. Block 20 calls a day and shred all mail. They do come by my house and job,but when I cut the grass carrying my M-4,they seem to leave.

  17. Here's the best advice, pay your bill before it goes on your credit period. After that you're just make it ten times harder.

  18. Ok, that is like stealing. You still got a service/product without paying for it. Who do you think that cost gets passed down to? Yep, honest people foot your bill. Loser!!

  19. I don't want to sound.. Pompous. But with all the great insight your giving, if ya always pay your bills on time, you'll never ever have to do any of those things. Mind you, I totally understand God forbid, a catastrophic event! That's a completely different catagory. So many people unfortunately are not disciplined in themselves to know what must/has to be paid. Humans are the absolute best at… Justifying to ourselves its ok to skip this, pay late on that etc. Then, when it comes back to bite you in the butt, your screaming and bitching to anyone who will listen. Knowing damn well if you would've done right in the first place, it never would've happened. Just my take.

  20. If the company that owns the debt writes it off; the IRS will view it as income and tax it at a gift rate of up to 40%. It is better to either find out about Chapter 7 or manage the debt because if you owe $20,000 or more in unsecured debt the taxes will be as high as $8000 or more in a single year and you cannot put off the IRS.

  21. "Don't pay collections" even though many creditors will sue you to recover their balances. This information is lacking so much information.

  22. I answer the phone and let them talk then I tell them to hang on so I can get a pencil, next I go out and wash my truck….seems to work they never hold.

  23. I've cleared so much debt by claiming "no contract" to debt collectors. Listen to this man and also read the united states commercial code.

  24. How long will medical bills that went into collections be on your report? I have some that are more than 7 yrs old and still are there. Does it ever disappear?

  25. I was served and because I’m a paralegal, I fought it and they dismissed it. Next is my credit report. If you can prove justification with the exhibits and respond and file every answer and proof of income, you will have a good chance of winning.

  26. What about when a debt is placed with one bureau and once the seven years is up they put it on a different one and after 7 more they put it on the third. Can they really only report to one at a time to stretch it out 21 yeara

  27. Never have never will. I didnt sign a contract with “Joe Blow Debt Collection”. I signed with a bank, for a Visa card, charged 800$ and fell on hard times. They proceeded to add late fees and other fees and my balance got up to… I am not kidding… around 8000$.

    I actually charged 800$ worth of stuff. I bought a radio and got my car fixed. Couldn’t pay. 4 years later I owe them 8000$????? And they “sell” my debt to some other company I never communicated with?

    NAH FAM… I’ll take the crap credit score.

  28. the debt collection companies like Midland Funding rely on taking you to court. A pro bono lawyer told me not to bother but I went to court following both 2 months of research and online advice – and even when you state legally they can not create a debt with you without service- in my experience- both the judge and lawyer made fun of me and the judge moved for midland. The judge at that point was blatantly biased and i still lost; I then moved and midland sued me again and cus i was a no show they happily took a default judgement. There is no way to legally defend yourself against this.

  29. I need advice because I have something on my credit report from college in 2015 but I moved out and graduated in 2013. It was for utilities (I think electric) and I had called the company asking them to change liability to someone else that lived there (my old housemates graduated late). Apparently it was never changed.

    I find out much later, surprise there’s collections on my account. I never received a bill or a phone call from the electric company. I sent in proof to transunion showing I was paying Verizon bills at a different location, my college degree showing my story is true, and my proof of employment that I was working elsewhere and my bank statements showing where I traveled (New york train tickets show the station purchased at) which is no where near the house.

    It was never approved to be removed, they can’t even show me proof I was living there either. They simply left my name on there for years. But I remember the exact day I called to take me off. Anything I can do about this?

  30. Thank you do very much. Collection companies use area codes 786 561 954 and many others to catch you off guard and answer the phone. If you do not know who it is, do not answer the phone. We always want to pay our debts, but sometimes loan companies coverup their interest rates and you pay over 200% of what you asked. Thank you so much for your help!!!!

  31. when my Dad died i got &10000 snd payed my debt off in 2008 my credit was 698 after paying my credit went down to 546 smh thought I was doing the right thing

  32. I am in UK i got a debt of £4000 😥 I subscribe for online maths for my son and he hate doing maths online. About this online maths lot of people complayin, cos they not good. And now they harassing me cos they want the money😣 I just don’t want to pay for something what i don’t use. I am just in to much stress.They destroying your credit score. In UK if you don’t pay the watch dog they broke your door and they take everthing from your house👿

  33. The best company I’ve used that help me with my credit is call Lexington Law
    That’s not a scam and I’m not putting any links to promote them. I used them for a few months and they help me. But I think I need them again to help me with some new things on my report

  34. I'll go one further than that. Even if you do pay it they won't take it off so your credit looks bad anyway. I don't even believe in the credit . Credit is a lie.

  35. This guy is a total scam artist. Poorly educated at that. This video is nothing more than a pitch for credit restoration, a scam in itself. Try this folks, don’t buy stupid stuff you don’t need on credit. (Yes, your “dream” car is stupid and should remain a dream until you can pay for it with cash.) Work, save a portion of your paycheck each week in a money market savings account with the highest interest rate you can find, then buy your toys with cash in full. For real money advice, check out reputable personal finance advisors like Dave Ramsey’s YouTube videos (lots of his callers deal with HUGE debt problems) or pick up a copy of “Personal Finance for Dummies” by Eric Tyson. If just one of you credit slaves watching this trash reads my comments and takes my advice, I’ll have done more public good than this fool will in his life.

  36. Damn..just yesterday i answered a number not recognized but they kept calling one right after another so im thinking maybe its important has to do with my kids. I answered i acknowledged its me and then boom they hit me they're trying to collect. Damn i was i came across this video before smh

  37. What happens when the collections agency forwards it to a law firm to file a judgement against you? Should you pay it then, or just take the subpoena and go to court?

  38. Huh, how bout that, I never knew the debt collection agency paid off or bought the debt first (for a smaller amount) and then tried to get the money from you! I always thought a company would hire an agency, they try to get the money from you for the company and then, if they do, they get paid a percentage, I'm shocked. Great info, thanks for helping people😇

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