Why Some People Face More Bill Collection Harassment than Others

Were you aware that credit reporting agencies (Equifax, Experian and Trans Union) have assigned you a score which reflects the likelihood that you will pay a delinquent bill?  This collection score 1 helps bill collectors decide where to focus their collection efforts.Credit reporting agencies also offer “bankruptcy risk scores” which offer credit grantors a numerical rating score to determine whether a customer or potential customer is more or less likely to file bankruptcy.Financial data that may be buried in credit applications or public records can now be analyzed instantly by computer and reduced to a simple score 2These collection systems mean that if you owe money to credit card companies or other lenders and you have a good jobs, savings or checking accounts or other indicia of ability to pay you will receive more aggressive and harassing phone calls and are more likely to be sued faster.If you do get served with a collection lawsuit, do not ignore it.  In Georgia, you have only 30 days to file an answer before the lawsuit goes into default putting your paycheck and your assets at risk.Bankruptcy is obviously one response but you may have grounds to challenge the lawsuit or negotiate favorable payment terms.  If Ginsberg Law Offices can be of assistance to you in the event of a debt crisis, please call us at 770-393-4985 or click here to email us.

1. The collection score product is described in more detail here, in a brochure published by the Fair Isaac Company, the organization that also provides credit scoring algorithms for the credit reporting agencies. ↩
2. My professional colleague, Long Island, New York bankruptcy lawyer Craig Robins writes more about bill collection and bankruptcy in his excellent Long Island Bankruptcyblog.  Thanks to Craig for his excellent post about automated bill collection systems, which you can read here. ↩

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