Negotiating with the collection agency

Hi Kris

Welcome to the forums.

You should understand the fact that even if you send a minimum payment to the agency, they still have the right to take action against you. But I feel that they will not do this because they find you making your efforts to pay the debt. I will suggest you to send as much money as you can. You can inform the collection agency that you have sent the money to them and do not wish to be taken action against you. Since you are making your effort to pay the said debt, they will understand your financial situation and won't take the matter to the court. Even if they intend to take it to the court, they won't get it any sooner. Enter into a proper negotiation and try to convince them whole heartedly.

How does a "charged off" debt hurt my credit report?

When a borrower fails to make a payment on a credit obligation, the lender considers the account to be uncollectible. The creditors post this account as a “bad debt” in their records book.

The creditors report the “charged off” account to the credit bureaus. This will be entered in the consumers credit file. This is a negative marking and will remain in the credit file of an individual for up to 7 years. This will hurt the credit rating of an individual and possibly prevent him from getting new financial help in the future.

Sears and Lowe's are the two credit card accounts that have been charged off. They have now been over to a collection agency. They say that they will not enter into any sort of reduced payment plan unless it is paid in 10 days. My question to you is that will they offer this reduction again. I want to sleep well in the night and am thinking about the positive ways.

Hi

I see that your accounts are ???charged off??? and it is already having a negative impact on your credit report. The collection agency can't tarnish further than that. You have the freedom to pay this debt at your own will and the collection agency can't pressurize you for that purpose.

The collection agency will be receiving money from you and they will be happy to offer this settlement again in the future. You can pay it in installments and they will be glad to accept your proposal.

Regards
Roxette

My husband and I are being pursued by an agressive credit collector (Pacific Creditors) who has taken over an account from a crdit union that is almost 9 years old. Unfortunately I beleive we have done all the wrong things. We have tried to make sporadic payments which have probably destroyed our statute of limitations chances. These creditors now have a judgement against us, in addition to a lien on our property. The original loan was for 7500, they now claim we owe them 12000. What can we do at this point?

Hi Acephalic

You should still pull your latest credit report from the three bureaus and see the latest standing of this account. As the Statute of Limitation is renewed in the date of last activity, do you remember what you last defaulted in the said account.

You can ask the collection agency to provide the following details and validate your debt. If it is past the SOL period, then you cannot be forced to pay it.

• The details of the account.
  
  
• All the calculation should be shown of the amount that is owed.
  
  
• Any copies of the papers to be furnished that shows the payment agreement.
  
  
• Provide a verification or copy of any judgment if applicable
  
  
• The original creditor needs to be identified.
  
  
• The Statute of Limitation needs to be proven for the collection of the debt.
  
  
• The license of the collection agency applicable in the state is to be furnished along with the license numbers and Registered Agent
  
  
• Proof of the agreement that the debt collector has purchased the debt or has been hired by the creditor to collect the debt from the debtor as this is the basic contract law.
  
  
• Complete payment history showing the details of the creditors, payment history, amount of the debt, break up of fees/interest should be provided in paper.
  
  
• A copy of the original signed loan agreement between the debtor and the original creditor establishing the debt between both the parties also has to be produced.