How to begin the settlement conversation with a CA?

Date: Wed, 02/18/2009 - 08:25

Submitted by scarecrowwinces
on Wed, 02/18/2009 - 08:25

Posts: 34 Credits: [Donate]

Total Replies: 4

OK, now I have to start negotiating with a collection agency. Large account, over $10K, and it is one of several that total over $100K. This is the first one that has gone to a CA but the rest will follow, they are a bit staggered but all are past due.

So - how do you start the negotiation process with a CA if your goal is to settle and you do not want it to advance to the point of being sued?

Do you just lay all the cards on the table right away, ask for a settlement? Tell them you are borrowing or whatever to get some money, but there will not be enough to pay all creditors? Implying to the CA that that if they want any money they should settle, or else they will get put at the end of the list?

Or do you try to let the debt age a bit, which makes the point that you really don't have the money to pay in full? That is what one of the articles on this site says (time is on your side).

But is time really on my side? Should I be aggressive and proactive? Or let it sit for a while?

Personally, I would send them a certfied, return receipt letter

Personally, I would send them a certfied, return receipt letter asking them for Proof of the debt, who they bought they debt from and date they bought it.
Then, when and if they answer the letter (only via USPS and let them know in your letter that you are merely trying to seek info on this debt and will reply once you recieve it), let them know you will only handle these business issues via written format, thru United States Post Office.
Once you receive info requested, which they should send you for a debt that large, then send them another letter stating you are unable to pay in one lump sum and ask them what type of payment arragements can be made.
It will be tempting to just discuss it over the phone but doing that can backfire and turn into a "he said/she said" situation unless it is all done in writing.
You are simply asking 2 things:
Proof of debt, original debtors' name, proof they legally bought the debt
and then with the follow up letter after receiving that info they will see you wish to work with them, but only in writing.

lrhall41

Submitted by on Wed, 02/18/2009 - 08:30

( Posts: | Credits: )

Well, I have done the first step, I have sent the debt validatio

Well, I have done the first step, I have sent the debt validation letter.

I guess I am trying to research how to script the conversations that will undoubtedly occur from here forward. I sure would rather deal only by mail, but is that realistic? It seems that many on this forum have negotiated over the phone and then gotten the settlement offer in writing.

Some days I feel strong and know that I can accomplish this. Other days I just want to give in and file bankruptcy. :(