inexperienced w/ collection agencies, please help!!
Date: Thu, 10/19/2006 - 14:18
My question is... should he try to negotiate with the collection agency or deal with the original credit card company? I don't think this is zombie debt, it's over 6 months old but not past the statute of limitations, I believe (I'm in TX). So... since it has been "assigned" to an agency, does that mean it hasn't been bought and he can still call the credit card co.? Is this the thing to do?
I saw some bank website that said you can try to settle with the agency... and others say if you contact the original creditor they might lower your interest or fees or whatever. What's the best way to proceed?
Should I bother with making them validate the debt if I know it's valid?
Right now he can only afford to give them about 30 a month, but in December the situation will get a lot better. In other words, he can't offer them a big amount and settle it once and for all.
As far as repairing credit.. I know about secured cards and becoming an authorized signer on someone else's account... anything else we should do? He got some student loans through a credit union and was able to sign up for savings and checking account (he'd been turned down for a checking account before). If he keeps these accounts in good standing, will that help out with his credit? (I know it's basically shot to hell right now.)
Live and learn. Thanks for any help you can offer!! I don't want him to get sued!
Where a collection agency contacted him, he needs to send a debt
Where a collection agency contacted him, he needs to send a debt validation letter certified mail with return receipt. I have learned to make all collection agencies validate before paying them. He can try contacting the original creditor and setting up arrangements on the accounts.
oops
question... they have an old mailing address on file for him. (An address that he still has access to, but he lives somewhere else). When he sends the validation letter, is there any reason not to put his new, correct address on it?
Try to work out arrangements with the original creditor if that'
Try to work out arrangements with the original creditor if that's possible. I don't think the file is sold to the collection agency. If the creditor can accept payments from you directly, you won't have to work with the collector. The file will be pulled back from them.
In my opinion, I may not update the current address to the collection agency until I am sure that their collection is proper with legitimate info. Let them send the validation to the address they have in their system, you can access it later.
Is this card charged off or not? It will matter when determining
Is this card charged off or not? It will matter when determining payment arrangement and if it has been sold or not. LTD doesn't buy many debts because it isn't lucrative enough when one of their major clients is CitiBank and Bank of America.
Sending payments to the origional creditor will post to your account bit it won't stop collection activity.
Also, if you don't plan on providing a current address when asking for a debt validation then you might not recieve the information your requested in a timely fashion or at all, if you mail gets lost durring a forwarding.
Hi FYI... sorry, I don't really know how to tell if it's been ch
Hi FYI... sorry, I don't really know how to tell if it's been charged off or not. Will that be on the credit report? All the letter said was that the debt had been "assigned." The card was from Bank of America.
The old place that mail is being sent to is a house; there's no forwarding order and the people who live there tell us when mail for him shows up.
A charged off credit card will reflect as a R9 on it status. If
A charged off credit card will reflect as a R9 on it status. If you can't find it and you might not depending on what type of credit report you pulled just call BoA they will let you know.
Go put in a change of address at the post office so that you can get his mail forwarded to yalls new address. Because he mioght be behind on more than one bill if he isn't getting statements from any of his intrest bearing accounts.