Tips on negotiating with a debt collector.
Date: Mon, 12/25/2006 - 13:22
Suppose, you are getting harassing calls from the debt collector and there is little money you can afford at this moment. He is no way willing to work with you. Offer him the lump sum amount and your debt will be cut into half. Offer a monthly payment that doesn't strain your pocket and without compromising with other vital expenses like food, utilities, rent etc. Give a start rather than making him call you again. This negotiation is to be done after you have the debt validated by the debt collector in writing.
Negotiating is the key factor. Don't let them convince you that the debt for which they are calling you is the most important one. You have some leverage. They cannot get a cent until you give it to them. I have a friend who works with one collection agency. He says the company doesn't pay them until the consumer pays their debts. Some kind of reasonable arrangement is important for them to be paid.
While you negotiate with the debt collectors, it is important to know about your rights. Debt collectors will say anything so that you get upset and pressurize you into agreeing into a payment plan of their choice. Don't be intimated by facing brutal insults and threats. You have the law on your side. Read the fdcpa and know the rules the debt collector must follow in their collection attempts.
According to laws in some states, the collector can sue on behalf of the creditor or garnish wages. In other states, no such actions are possible no matter what the collectors say. Knowing the laws in your state is very important when dealing with the collectors.
Debt collectors often say "If you don't pay this debt until 4 pm, cops will come to pick you up. Or, money will be taken out from next Friday's paycheck." It's all scare tactics. They can never do it, but they always like to say it to create fear in you.
Contact the consumer protection division of your state attorney general's office for the debt collection laws. Once you know all measures in negotiating with the collector has failed and they are in a stronger position to file a case against you, take a close look at your finance. Never offer them something that you cannot afford in the coming months. Keep the important monthly bills in your mind and your family should be your top priority. Any other bill is of lesser priority in front of your family.
Like I said earlier, negotiating is the key. Either you can set up a payment arrangement or you can settle the debt in one lump sum amount. They will be paid after you give them money. So, they will accept your proposals. Keep pushing them until your proposals are accepted. My friend tells me that they have large number of files to collect every month. So they don't want to give much time on a single customer. They want to resolve the matter as soon as possible so that they move on to their next client and get paid for the previous collections done.
Some collectors will send you settlement proposals offering 50 to 70 percent of the amount due. Get everything in writing so that you have proof after the debt is paid. Make sure that you have the PIF or the SIF in writing.
Have faith in yourself and be informed of the laws. Collectors are humans; you will be able to arrange a fair deal with them. Those who are into illegal collections, take legal recourse.
More good ideas Howard. Personally I have found that if I put my
More good ideas Howard. Personally I have found that if I put my fear aside and "talk back" to collectors, I handle the calls a little better. I might not sound "tough", but I feel brave and that makes me feel good. I refuse to let someone's dumb or hurtful words hurt me or scare me.
That's the thing. Don't let the fear spoil a productive conversa
That's the thing. Don't let the fear spoil a productive conversation and when an arrangement is possible. When collectors go out of their normal way, laws are there to protect the consumers. When some kind of arrangement is possible, why not get it done in the fair way. Give a try! Ultimately, it is something that benefits everyone involved in the process.
Excellent advice, Howard, as always. You make very valuable and
Excellent advice, Howard, as always. You make very valuable and helpful contributions!
Great information Howard! :) Thanks for sharing the information!
Great information Howard! :) Thanks for sharing the information! :)
i think you should treat the collector how they treat you. If th
i think you should treat the collector how they treat you. If they call you nice, you should be nice too. If they call you with an attitude, you should terminate the call or get rude back. Why play tough if you don't have to.
This is excellent advise. My recent experiences echo what you've
This is excellent advise. My recent experiences echo what you've said. Although the CA tried to assert that the only payment options were through a ACH, and if I didn't agree to that legal action would be taken, I didn't flinch. I merely wrote a long letter outlining a payment plan with the first installment enclosed. I figure if they want to take me to court and try to garnish my wages, they're in for a rude awakening.
Thanks again for the valuable info.
Howard, these are great tips so thank you for sharing them with
Howard, these are great tips so thank you for sharing them with us :-). I have been dealing with a couple of shady collection agencies since I ended my program with my debt settlement company last month. At first I was scared and then I remembered that I had the law on my side. I got upset because one called from a laywer's office but they also have to follow the fdcpa guidelines. There is no doubt about it. I have learned a lot over the last couple of weeks and it is helping me tremendously. I have an appointment with a lawyer in a couple of weeks because I have one CA on six violations of the FDCPA so far. It's time to fight back and make collections more fair for the consumer.
Thanks guys! I want to stay here long but sometimes I get clashe
Thanks guys! I want to stay here long but sometimes I get clashed with my job schedules.
Anyways, Mishele, put that fight against the debt collector because you have legal ammunition about their violation and win the case. You will be compensated for the losses. You may have to put some money to your lawyer in the beginning but you will surely get the returns.
Collectors take advantage of two things - Fear and money. They want to hit us where it hurts the most and at that point where we sound weak. If you for one can stand strong, many will follow your way. Best of luck!
My friend who works in collections is sitting besides me. Actually I am typing this but he is saying most of the lines here. He is a good guy!
I also have one more question regarding CA's. Do you or your fri
I also have one more question regarding CA's. Do you or your friend know what type of letter I should send to NCO regarding a CC account that is past the SOL and they are trying to collect on. I am wanting to let them know that I am aware of the debt being past the SOL??
Try this. It's just one sample letter out of many. It doesn't gi
Try this. It's just one sample letter out of many. It doesn't give that personal touch you want collectors to understand. Make it according to your requirements.
[quote] FREE Sample Expired Statute of Limitations Notification Letter
Today's Date
Your Name
Your Address
Collector's Name
Collector's Address
RE: [insert account number or name of account or name of debt]:
Dear [insert collector's name or company name],
This letter is in response to your [letter dated xx-xx-2005] (copy enclosed) or [phone call on xx-xx-2005], concerning the collection of the above referenced [account or date].
I do not believe I owe what you say I owe therefore I dispute this debt. I am well aware of my rights under the Fair Debt Collection Practices Act (fdcpa) and my state laws so I hope to save both of us a great deal of time by letting you know that not only do I dispute the validity of this debt, I have also checked with my State Attorney General and verified that the Statute of Limitations for enforcing this type of debt through the courts in (insert your state or the state in which the contract was signed) has expired. Therefore, should you decide to pursue this matter in court I intend to inform the court of my dispute of this debt and that the "statute of limitations" has expired.
This letter is your formal notification that I consider this matter closed and demand that you, or anyone affiliated with your company, stop contacting me regarding this or any other matter except to advise me that your debt collection efforts are being terminated or that you or the creditor are taking specific actions allowed by the FDCPA or my state laws.
Be advised that I consider any contact not in accordance with the Fair Debt Collection Practices Act a serious violation of the law and will immediately report any violations to my State Attorney General, to the Federal Trade Commission and, if necessary, take whatever legal action is necessary to protect myself. Be advised that I tape record all phone calls and violations of the FDCPA can result in you or your company being personally fined up to $1,000 per incident.
(Sign above name)
Printed Name [/quote]