Most of these collection agencies are simply vultures looking for easy money. They buy defaulted accounts for a few cents or less on the dollar, then aggressively try to collect. Generally, they don't care whether it's a legitimate charge or not, they simply are looking for easy money. There's a reason that they are often called "vultures". I'd suggest he call the collection agency and tell them the story, assuming it's the truth and he never had the account. Then add that he absolutely will not pay a cent because it's not a valid debt, and not to contact him any more regarding the matter. They will then try to weasel out a payment, probably offering a "discount" if you just pay up, or agree to small payments. Do not agree to even one small payment, as that can legitimize the whole debt, and they'll never quit. They will still try to talk you into it, simply tell them that you've infomed them of the situation, will not ever pay that debt, and if they don't like it they should take it to court. Unless it's a sizable amount and they have legitimate proof that he DID open and use the account, they won't take it to court. They may send a few more mails, or call (tell them every time NOT to call you again). They may lie as to what they can do if you don't pay, call you names, or use other abusive tactics, but they really can't do nothing without taking you to court. If they give up, they will most likely sell the account to another vulture company, who will try the same thing over again. Eventually they will tire of it and give up. They can in some cases (unfortunately) report to a credit agency, but your friend can dispute that report in writing and request its removal on the grounds that it was not a legitimate debt. Please, do NOT give in to these vultures; people that buckle under and pay even when they don't owe, or pay outrageous interest/penalty charges on a small legitimate debt are what enables these bullies to do what they do. It's one thing if the debt is legitimate, but quite another to pay what you never owed just to get them off your back. In many cases, you can report abusive behavior to a government agency, as there are usually laws governing what they can and can't do, but generally are not allowed to harass you. It's important to be firm...if you weaken and offer to settle at all, you'll see why they call them vultures. In the off-chance they DO decide to take it to court, you absolutely must read the documents and respond. Sometimes if you dispute the suit, you have to go to the clerk and file, or they will get the judgment by default, and then their invalid claim becomes valid even if you didn't owe the money. If they know it's not a legitimate debt, they probably won't file a suit...but they might, just in hopes you won't show up and they will win by default.
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