In a search for new streams of revenue, aggressive collection companies have bought charged-off credit card accounts from the original lenders for pennies on the dollar. Then, through credit scores and other technologies they identify which debtors are most likely to pay.

These firms are exploding; four debt-buying companies have gone public, in recent years and last year, more than $75 billion in old debts were sold.

Recent charge-off debts are going for 6 to 7 cents on the dollar and older ones for as little as 1.5 to 2 cents on the dollar. That means $1.50 buys a $100 debt. When you do the math: if the collection company can get the debtor to pay just $2.00 on that debt they have recouped their investment and covered their costs.

Consumer attorneys have been quick to point out widespread violations of the federal Fair Credit Reporting Act and the Fair Debt Collection Practices Act. Among the worst practices seen:

Harassment - Verbally abusing and harassing consumers.

Bait-and-switch credit cards - Credit card companies tacking these old debts onto newly issued credit cards.

False promises - Promising to delete a negative mark from the consumer's credit report in exchange for a token payment. This revives the statute of limitations followed by a lawsuit.

"Re-aging" debts - Illegally reporting the debt to the credit bureaus as a new debt. The goal: To extend the seven-year limit on reporting negative items and exert more pressure on the consumer.

Suing or threatening to sue - Even though the statute of limitations has long expired.

Be aware that paying any amount on one of these accounts could: 1) reinstate the 7-year reporting period; 2) harm your credit score by bringing the delinquency record up to a more current "delinquent" history; 3) trigger the IRS statute regarding reporting a forgiven debt as "income"; 4) result in a law suite before an unsympathetic judge who does not know much about collections law.

If you are being pursued by a collector for an out-of-statue debt here is what consumer attorneys advise:

• Know the statue of limitations which can vary by state.
• Know your rights. For legal referral visit the National Association of Consumer Advocates.
• Consider ignoring the call. Set the phone down and just walk away.
• Write them and demand they stop contacting you.
• Negotiate carefully, with a lawyer's advice.
• Keep and eye on your credit report. Dispute and fight back any inaccurate reporting.
• Demand that the collector produce a copy of the documentation that created the debt, such as any agreements you originally signed along with an account record.

If a collector persists without proof that you own the money they are in violation of the Fair Debt Collection Practices Act.