Read this advice: Collectors at end of month...M.O.!
Date: Fri, 03/31/2006 - 08:30
Keep in mind that end of month is crunch time for debt collectors. They have quotas to meet, and this is the time that they will pull out all the stops to get their money. They want their bonus! They will say things like, "You have until 5PM to call me back."
(Technically, if you really wanted to press the issue, they really are not supposed to deadline you unless they have a clear course of action planned...and they intend to do it. Otherwise, it's a veiled threat. I have seen agencies sued for this, and it stood up in court.)
My point is, this is the time of month when they call relatives, neighbors, your dog...everyone. They get very aggressive. Remember that you know your rights, keep a cool head when dealing with them. It is usually at end of month when collectors go into the "gray areas" of the fdcpa, or just blatantly violate it in hopes of cashing in.
If you are hoping to settle a debt, or have been trying to negotiate and not getting what you really want, the last three days of the month is the time to get it taken care of. The words "cash in hand" and "Western Union" mean a lot to collectors at end of month, trust me.
Last but not least...if they tell you they don't work on a commission/bonus structure...they're lying!
Yep! This is true! I was always told to say "Your account is bei
Yep! This is true! I was always told to say "Your account is being audited on the 29th and if there is no payment posted they may take further action"
That statement is a bit of a broad stroke. The original creditors can audit accounts any day of the month they please. Also, I have seen student loans in default since I was in diapers and some of those folks have never even been garnished. It is most certainly true that in unfortunate times, even an educated person can hit a brick wall in the job market depending on where they live, and what there degree is in.
My six month tenure in student loans taught me that no two debts are alike. There was a hard copy script to follow, but I never followed it verbatim knowing how silly it would sound in unique situations. Threaten someone who with garnishment while they run willy-nilly about town looking for work? Sounds false, doesn't it?
Back to that end of month line, I knew already that if someone was as poor as a churchmouse, telling them that their account will be audited did not amount to a hill of beans to them.
Quote:Technically, if you really wanted to press the issue, they
Quote:
Technically, if you really wanted to press the issue, they really are not supposed to deadline you unless they have a clear course of action planned...and they intend to do it. Otherwise, it's a veiled threat. I have seen agencies sued for this, and it stood up in court. |
Thanks for the information. It's really nice to get you both here in this forum.
BTW, do you prefer sending payments over telephone without having validation in hand?
Speaking of giving a deadline...about a month or two ago, I had
Speaking of giving a deadline...about a month or two ago, I had an agency call and say that I had until noon the next day to contact them and make arrangements to pay or they would take legal action. I did not contact them by noon the next day, and still no legal action taken.
Guest, As you probably know, that was a violation of the fdcp
Guest,
As you probably know, that was a violation of the fdcpa. A collector cannot threaten litigation unless they intend to carry though. Also, A collector usually must refer the matter back to the creditor, who then says whether to litigate or not. Of course this would take much longer than "noon tomorrow".
Jedi Firstly, Thanks for your informative posts. As to stude
Jedi
Firstly, Thanks for your informative posts. As to student loans, collectors are still up to the same old tricks. Recently someone was told "it is up for review on Tuesday to be turned over to the Dept of Justice" etc. I sent a letter to the collector (and Dept of Education) describing each violation of the fdcpa and court cases with opinions on each matter,
I am happy to share my knowledge. I am also glad to be in the co
I am happy to share my knowledge. I am also glad to be in the company of other collectors who have a good heart and really want to help people!
It is very unwise for an agency to deadline a debtor. They sure better do what they say they are going to.
Yes, they often do use broad strokes. I like that term. They like psychology. They want to plant a seed in your mind. If they say something like what Ari said above, then that leads you to think, "What further actions?" When you ask them, they won't tell you. It's a big mystery. LOL.
Curlycarl...do not send anything to anyone until you know who and what they are. Upon aquiring a debt, the firm should send you a letter. If you don't receive it, then you can request one. They HAVE TO, HAVE TO, HAVE TO provide it. There are agencies out there that will try to get you to pay before you get the letter. I have seen unforunate cases where someone agrees to pay the full balance, then the next day they get a debt validation letter with an 80% settlemebnt offer, and the agency won't give their money back! Also, the only reason they want you to pay over the phone is so they have a secured payment. If it is postdated, it still reflects on their quota. Do NOT give your account info to anyone...especially not the payday loan sharks, if you have opened a new account.
Mwtx, THey can say that to try and light a fire under your
Mwtx,
THey can say that to try and light a fire under your a$$, but the truth is, litigating student debts throught the DOJ costs a lot of money, and if your deafulted loan is not very big, it won't be woth it to them. They'll just keep pressing on until you can rehabiliate your loan which I highly recommend. :)
settlements
I plan on settling a debt is currently $3200 orginal debt was $2000. I want to settle for $1400 to avoid possible tax implications. What is the best strategy? oh! there last offer was $2600. I really want to know what to say to get them down to amount I want. I know I want to send them a agreement letter for my records. What should I include in it? Thanks for the help!
Talk to a debt counselor because he can offer you the right advi
Talk to a debt counselor because he can offer you the right advice after reviewing your accounts. Also, you can draft a letter with this info if that sounds perfect. You can edit it as per your situation.
Quote:
YOUR NAME YOUR ADDRESS CITY, STATE, ZIP CODE Date: CREDITOR NAME ADDRESS CITY, STATE, ZIP CODE RE: Acct.# Creditor: I recently obtained a copy of my credit report and noticed that your company has reported me as having the above listed account as: (delinquent, sent to collections, etc.). I wish to bring this account to a resolution that will be fair and beneficial for both of us. Therefore, I propose to pay you X monthly payments of $, or forward a check to you in the amount of $ as payment in full, provided that you are willing to send me a letter stating you will report this to any and all credit reporting agencies as: 'PAID AS AGREED' or notify me in writing that you agree to delete this item from any and all credit reporting agencies. I WILL NOT agree to accept a 'PAID P & L' or 'CHARGE OFF' for an additional amount of time on my credit report. It is my position that I have suffered enough as a result of this problem. Upon receipt of your letter I will send you a cashier's check or money order in the amount of $. Sincerely, Signature Date signed Your name Date printed |
