What is the best step here
Date: Tue, 01/05/2010 - 15:43
Here are the more pertinent details. The debt is a medical bill over 3 years old, thus passed the statute of limitations in my state. So technically they agency can't contact me. However, I'd like this off my credit asap. It seems my options are
1) Send debt validation letter
2) Send Paid to Delete letter
3) Try to negotiate them down AND get them to delete this off my credit report.
If I send a Paid to Delete letter, do I have to pay the full amount? Or can I offer a lower amount?
Is it likely that if I can get them to accept, say 50% of the amount, they will delete it off my credit?
And I thought debt validation letter would be the best first step, but when talking on the phone, everything they said sounded legit. The original amount was correct, the original collector correct, etc. If I do send a debt validation letter, and they don't send me a response with in 30 days, then what do I do?
Thanks for any and all help, I wish I could just sit down and talk to someone about this. But the only place in the town I live in doesn't do free consultations :(
just one point of clarification - just because it is sol (and i
just one point of clarification - just because it is sol (and i dont know what state you are in or the laws there to say that it is) doesnt mean they cant contact you. heck, it doesnt mean they cant try to collect on it! it only means they cant litigate against you for it. its refreshing to hear however that you do want to pay it.
Settling a debt with a CA is kind of like buying a used car ....
Settling a debt with a CA is kind of like buying a used car .... you need to haggle with them to get the terms you want -- anything is possible. Keep in mind that CA's are usually paid on contingency, and the company keeps a percentage (33% to 50% or more) of everything it collects for the creditor; further, that individual collectors are usually paid some sort of commission based on how well they collect their accounts. So the bottom line is that the more they can get you to pay, the more money they make for themselves. They want you to pay 100%, you want to pay 0%, the end result is based on how well you both play the cards.
You can certainly request a "validation" of the account; they may or may not honor your request. The FDCPA only requires them to validate if you request so within 30 days of the required 1692g notice, which they are required to mail to you within 5 days of their initial communication. Ultimately if they claim they already mailed you those required notices, and you never requested validation within 30 days, then they don't have to provide validation. But your argument is that they never mailed you the notices -- and so how do you prove they didn't? You really can't, unless you wanted to sue them and make them produce computer records showing the letters being generated.
Unless you really question the amount owed or legitimacy of the debt, I personally wouldn't go the validation route. If they are indeed able to produce validation upon your demand, then in effect it just wastes time, and the fact that you demanded validation will just make them "mad" (for lack of a better word).
Oh PS, as to the SOL, like guest said, that doesn't mean they can't try to collect or report to the bureaus. It just means they can't enroll the court to aid in their collection.
So on to the negotiations..... like I said above, it's how well you play your cards. You have in your hand that they can't sue you, so if you refuse they will never collect anything. They have in their hand that you want it off your credit report and are likely willing to pay to get it removed.
Call them up and haggle. Keep your cool, and don't get upset or angry. They may talk down to you or try to belittle you, but just act nonchalant. If they make rude remarks, ask them "Are you done yet? Now that's not solving the problem by talking like that, is it?" Let them know that you know the debt is past SOL, and ask them if they want to get paid or not. Then offer them 50% with a stipulation to delete the collection from your credit report. They may counter that they want 100% to delete. Just don't let them think that they have the upper hand. Come back with something like "I just filed my tax return and only have $XXX to settle this; if you don't want it, then I'll have to pay another creditor..." Keep haggling, and eventually I think you'll meet somewhere in the middle.
Whatever you agree on, make sure that you get it in writing.
(I asked the original question) I've read not to talk to them on
(I asked the original question)
I've read not to talk to them on the phone, just to keep everything in writing and request receipt mail. Should I try calling them anyway? I'm just worried that if I reach an agreement with someone on the phone and ask for it in writing, they might just send me some contract that aren't the same terms.
Also, reading around and talking to people, I've been told to offer 20-25% of the debt on the first offer and no more. Is this a good idea? The debt on my credit report is $623, according to the CA, its $917 after the interest its accrued. I was thinking about offering $250 in a pay to delete letter. Does anyone think thats a good idea?
P.S. this is a junk debt collection agency. So they probably paid cents on the dollar of this $623 debt,