Be honest and courteous with your creditors
Date: Mon, 12/25/2006 - 14:01
Creditors start calling when you have defaulted in your payments. Their calls start increasing when they realize you are showing no interest in paying the debts. No one wants to keep their debts hanging over their head. It happens when one has some financial problems or other serious reasons for not paying the debts. I don't think anyone likes to see their debts with added interests and fees.
Call your creditors before your debts become delinquent. They want to hear you say your problems. They will be more than willing to work with you after knowing your situation is ahead of time.
When you are late on your bills, credibility gets damaged and the creditor insists sending your accounts to collections after trying to arrange something with you. Let them know in advance that you are going to default in your future payments. This has some benefits.
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Sometimes, they will permit you to pay the interests only until you are able to catch up with the payments.
Before contacting the creditor, get a clear picture of your financial situation. Know what you can and cannot afford to do. It is necessary that your negotiations are beneficial to you as well to your creditor. Ask yourself some questions before talking with the creditors. You should have clear answers to yourself so that you sound confident in the negotiations.
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Draft your thoughts in writing before calling the creditor. Don't get out of the track. Stick to what you have decided and put them in front of your creditors. Defuse any emotions that make your negotiations weaker.
After the call ends, take notes of the creditor's reply, the person you talked with, the date and time and the arrangement done. Convert this oral communication into writing by sending a letter to the creditor. Keep a copy for yourself. A follow up letter helps confirm and clarify the arrangement done. This also shows your true interests in resolving the problem and a record of what was said and done.
Excellent ideas Howard---have you been in the business of lendin
Excellent ideas Howard---have you been in the business of lending or collecting before or are these just things you've learned along the way?
I have a friend who works in collections. He has been a great he
I have a friend who works in collections. He has been a great help to me during my difficulties. As he works in this field, he knows the behavior of collectors and creditors. We talk with each other and try to find a solution. As I have read so many things in this forum, I wanted to share something my friend taught me over the time, and if this helps someone
WOW...That is great info and it helps for young ppl like me that
WOW...That is great info and it helps for young ppl like me that aren't really sure how to handle the CA's. Thanks...
Thanks, Howard, some really great tips! I know from experience,
Thanks, Howard, some really great tips! I know from experience, that if I don't let my fear grab me, and I call, I end up feeling better. If you don't, the fear takes hold and you just get more fearfull. Some of my creditors have been very understanding with me, explaining the circumstances, and have dropped interest, fees, etc., just so I could get caught up. Only one, that I have mentioned before,LVNV, refused to talk polite, and did nothing but break fdcpa reg. I had written dv letters since Jan., with no response, just ugly calls, until they pass it to another of their agencies. So don't be afraid of them, they are human just like you,can't kill you or put you in debtors prison, and besides, you may be surprised, they may actually offer you something to help..KAren :D
but with pdl's they will sell the account faster than your head
but with pdl's they will sell the account faster than your head can turn. As soon as you default from the contract, they have already been paid the amount of the loan if not more, so they are eager to sell it and get more money.
I will say this much for being courteous with creditors or CA's
I will say this much for being courteous with creditors or CA's when they call...
"you can catch more flies with honey than you can with vinegar"
and my personal favorite...
"kill them with kindness"
I have had personal experience with creditors calling someone I knew - and what happened when the debtor became angry over the bill.
The creditor was a telephone company, and was nothing but professional and courteous, but demanded payment right away. The debtor became angry and yelled at the creditor, cursed at them, and hung up. The creditor called back and informed the debtor that his file would be marked as "refusal to pay" and that further action would be taken. Again, more anger from the debtor and he hung up. After he calmed down, the debtor called the creditor back, apologized, and listened as the creditor explained to him that this was a bill HE had control over - it was a long distance phone bill - HE was the one who made the calls, and HE was the one who chose not to pay it on time, or to call and make payment arrangements with the creditor. In the end, the issue was resolved, and payment arrangements were made.
I thought that creditor made an excellent argument, and was completely professional about it. But keep in mind, if the debtor had not called back and apologized, his file would have been marked "refusal to pay" and the creditor would have proceeded with collection action against the debtor.
These are all excellent points that everyone on this thread has
These are all excellent points that everyone on this thread has made, but I would also add this:
That collectors avoid making threats such as sending the cops to a debtor's workplace, and not insult the debtor.
I have had my fair share of collection calls, and I have always been much more inclined to work with collectors who were professional and courteous. Those who played the bad cop routine with me got hung up on PDQ, if you get my drift!
collectors
Some collectors are just downright NASTY!!!! Thats the ones I refuse to deal with. Thankfully I am payday loan free. I dont have to deal with them anymore. KYSIDE38
Howard, I found as well, that there are some creditors who if yo
Howard, I found as well, that there are some creditors who if you call them in advance to explain your financial situation, they are willing to work with you. There are some who are very cordial about the situation and then there are those who are unfortunately not. That is why I have decided to turn to T&C for assistance.
Thank you for your advice. YOu are appreciated.
