Past Due Debtors Hungry For Credit Fall Into Credit Card Trap
Home Tell a Friend! Contact ICFE Link Exchange Search ICFE Subscribe ICFE About the ICFE
ICFE News Releases ICFE in the News Children and Money Financial Education Personal Financial Counseling with Paul S. Richard, RFC Credit Card Tips Credit File Correction Mending Spending Links and Resources Order Options

Past Due Debtors Hungry For Credit Fall Into Credit Card Trap
- Offers From Collectors and Debt Buyers

San Diego, CA - "There is a new twist for those delinquent, but still credit hungry, consumers from the collections industry, in particular the 'past due debt' buyers. Be careful, if you are one of those eager, but already delinquent, credit seekers, because some of those offers for pre approved credit cards you have been getting in the mail may be from someone who is trying to collect a past due debt.

That's right! A collection agent sending out an offer for a pre approved credit line, often in the $5,000-$10,000 range, a very alluring figure for those want-to-be spenders. All that is required to get that pre approved card is a signature and verification of the address/phone number shown on the offer. A business reply envelope is included and on the surface, it appears to be a legitimate offer of credit. It also conveniently has all the current contact information verified that a collection agent needs, when the application is returned.

Instead of getting a credit card the applicant instead will become the focus of a renewed and intensified effort to collect a past due debt. Sometimes the debt is really past due, like 10 or 15 years old and it has been purchased in bulk with thousands of other accounts, for pennies on the dollar amount due, by companies known as the 'past due debt' buyers. These debt buyers employ lots of collectors and attorneys to sniff out the recoverable assets and pursue collection of the original amount owed to the original creditor plus thousands of dollars in interest charges added to the account by the debt buyer.

ICFE has spoken with several consumers who have called about the legitimacy of debt buyers and those companies who try to collect the debt. A couple of them have mentioned the pre approved credit offers they received and one consumer in particular indicated he was tipped off about the offer coming from a collection agency, when, by chance, he noticed the address on a return envelope from the collection agency was identical to the one for the pre approved credit offer.


About the ICFE:

The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation).  The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. 
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (  CASDRAP disbanded in 2010, shortly after the web site project was completed.  In 2011 the ICFE assumed the single sponsorship of the ( web site and is now responsible for its content and operation.

The ICFE is also an on-line help for consumers who spend too much.  ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.

Visit the ICFE's other web sites at: and  Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G,  a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.

Home ] ICFE News Releases ] ICFE in the News ] Children and Money ] Financial Education ] Resource Center ] Credit Card Tips ][ Credit File Correction ] Mending Spending ] Links and Resources ]  [ Online Store ]


Copyright ©  1997 - by Paul S. Richard
and the Institute of Consumer Financial Education, All Rights Reserved.
View our
Privacy Policy Our Terms and Conditions

Institute of Consumer Financial Education
PO Box 34070
San Diego, Ca 92163
Paul S. Richard, Executive Director
Phone 619-239-1401

FAX 619-923-3284

Questions for Click to go to Website Contact Us or 
Website Design Donated by Desgn School Programs