Sent Offer Letters/No Response

Since you have already got the debt validated, I think you should wait for them to respond to your settlement offer. If they agree to settle the debt, they will get in touch with you.

CA's just aren't really equipped to negotiate settlement via mail. A phone call would be your most logical choice. Here are some tips for negotiating by phone:

How to negotiate a settlement:

1. Plan your call and set your goals before calling. Set your goals for the communication prior to beginning the conversation. What do you what to accomplish? If you want a payment plan, the collector is going to need to know your financial info to be able to justify it to his boss. If you want a settlement, the collector will have to know why one is justified.

When you have your goal for the conversation in mind, you can anticipate what the collector will want to know or ask. This will allow you to steer the conversation and guide it toward what you want. If the collector calls and you aren't ready ???????? tell him that you need a minute and pull your thoughts together.

2. Organize Your Thoughts. You know what your goal is. Ex: You want to settle for 50%, start negotiations @ 25%. Now, set up a logical progression for the call. Keep the conversations moving toward your???????? goal. Don't introduce distractions and don't follow the side path the collector will layout for you. But above all remember, if you don't know what you are going to say, you probably won't say what you want.

3. Make no solid agreement on your first phone call.

4. Talk to the collector. That doesn't mean allow them to berate, insult or harass you. If you are being mistreated on the phone, tell them how you are feeling and if they don't change their tune ???????? END the call. However, that also means don't threaten, insult or yell at the collector either. If the conversation goes bad ???????? just hang up. An argument will not help you.

That said, if the collector doesn't know your situation, he can't go to bat for you with his manager (collectors have very little authority to make a deal and anything significant you are asking for will require higher approval -- perhaps several levels higher). And if you don't communicate well, he won't. You need to provide the supporting information for the goal you set in step one. If you can only pay $25 a month, you will have to justify that to the collector. If you can't make it sound reasonable, it isn't going fly. But remember, the collector works on commission. If you make the payment plan reasonable and support your goal with facts and figures regarding your economic position, he will likely take the deal and move on to the next account.


5. Make sure you have the money to pay an agreed settlement immediately

6. Sit at a table with a notepad. Take notes of everything being said. (The collector will I promise you). If you are able, record the conversation. If you are in a 2 party state, you will need to inform the other party of the recording.

7. When you are talking to the collector, describe where the funds to settle is coming from (for example, the money you will be paying this is with is being given to you by your wife's uncle or something like that -- he has offered you $x - with x being your starting point in the negotiations).

8. Remember X is all the money you have to work with on this call. If the negotiation goes higher and you hit your goal tell them you have to have it in writing so you can bring it to your uncle and ask for more.

9. Make no promise to pay without the written settlement agreement. Don't pay or make a promise to pay on the first call.

10. Remember you are dealing with trained negotiators. If the collector becomes excited or you feel is getting abusive simply say, "Obviously we both want to take care of this, but I feel you and I aren't communicating well. May please speak with your supervisor?"


11. Relax. Inhale. You have just been through a stressful situation. And, it is the collector's job to make it a more stressful if you aren't paying. After you hang up with the collector don't talk to your family for at least 10 minutes. Just pause and remember, nobody is going to die over this. While it is important, don't let a debt destroy your relationship with your family. You will not get the result you wanted in one call ???????? most times


12. It will take more than one call to do this right. You will need to take copious notes and make sure you get the names of who you talk to.

13. If you are concerned that you will not be able to handle the negotiation yourself, there are professional negotiators -- just stay away from the internet settlement companies unless you enjoy putting all your money in a pile and setting it on fire. An ethical settlement professional will work for a percentage of what they save you and will not want any money in advance of results that satisfy you.

Keep track of your calls, who you talked to and about what. You cannot take too many notes while you are opening the lines of communication and negotiating a debt.


A final thought. As I said above, the collector you get on the phone has virtually no authority. Sometimes, he is constrained by factors beyond his control (limits imposed by the original creditor or by the business plan of the CA). If after going through the above steps and the collector says "no", don't automatically assume he is playing with you. Wait two weeks and try again. It that does not work try again during the last 2 or 3 days of a month on the end of a calendar quarter when goals and commissions become intense motivators for the collector and the CA.

If, after working your plan through several cycles without results, then perhaps you re-evaluate or give up. Sometimes it is just a bridge too far for reasons beyond your control.