How serious is the threat of collection?
Question: A friend of mine ordered a subscription, received the first magazine and decided he didn’t like it. He disregarded the invoice, did not send any money in, and several months later received a collection notice from the National Credit Audit Corporation.
http://zima.net/docz/collect.pdf Are they seriously going to pursue the matter (for a single copy of a magazine, because the publisher never sent more), or it is simply some sort of name/address validation scam for spammer lists?
Vadim
Please don9t reply to the address above ? it9s a spam trap. If you want to send me a message you can do it via any of my sites below.
I truly doubt a magazine company is going to bother hiring someone to sue for collection. The collection notices are a ruse. As a former business owner, every week I would get catalogs from printing companies that contained different styles of collection notices that you could purchase to give the impression that deadbeats should pay up or else. Besides, the magazine company does not have a SSN, so the odds of it appearing on a credit report are very slim to none.
Cheers,
Answer: They don’t hire someone to collect. They sell the debt to someone else, and that someone else then attempts to collect the debt. Debt collection firms might pay the magazine co 25 cents on the dollar for the debt, and if they can get more than 25% of the debtors to pay up then they’re making a profit. The magazine co wins because they get some cash and lose the hassle of going after a deadbeat, and the collection agency takes all the heat for the tactics they use, legal and otherwise.
Yes, any business in this country needs a tax ID number to file a tax return, and as such they are perfectly capable of reporting bad credit to the credit data agencies.
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