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Mia
LIF Infant
Member since 1/12 133 total posts
Name:
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Settling with a collection agency
Does anyone have any experience doing this? My husband has two bills I need to clear up, and I don't know how to go about it. I called and they offered me 50% off, but from what I've read, they can go to 25%. Also I thought medical bills weren't really considered an issue on credit reports, is that only before collections? Thanks!
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Posted 4/30/12 12:51 PM  |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Settling with a collection agency
are you offering a lump sum?
I got citibank to take 30 cents on the dollar- but I had to pay them in a lump sum- no payment plan
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| Posted 4/30/12 12:56 PM |
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Mia
LIF Infant
Member since 1/12 133 total posts
Name:
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Re: Settling with a collection agency
I did! And I think I offered a bit, I am just wondering if it's because it's not a credit card, it's a wireless phone company. I got my husband with a lot of debt that we are digging our way out of, we have two things to clean up on his report, then we can possibly look for a home!! woohoo!
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| Posted 4/30/12 1:09 PM |
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MrsS1976
LIF Adolescent
Member since 5/11 534 total posts
Name:
M
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Re: Settling with a collection agency
Did you dispute the debt and demand validation of the debt in writing within 30 days of receiving your first letter from the collection agency? That stops their collection efforts right there until they validate the debt. Also, in the same letter, many alleged debtors tell these agencies that "it is inconvenient to contact me at any time and at any telephone number." This stops their harassing phone calls.
Just doing these actions in your first letter alone tells them that you know your rights under the FDCPA and state law.
While they are validating the debt, you can start saving money to offer a settlement. And, if you call to settle, do not admit to debt but rather make a really low offer to avoid this hassle.
Finally, whatever portion of the alleged debt that is waived by them in the settlement should be stated as being disputed in the settlement agreement. Disputed debt that is forgiven is not taxable income.
PS
Check out www.creditboards.com and debtorboards.com
Those websites are great for teaching you your FDCPA and FCRA rights and how to clear all of the negatives off of your credit file.
Message edited 4/30/2012 1:39:29 PM.
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| Posted 4/30/12 1:37 PM |
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Mia
LIF Infant
Member since 1/12 133 total posts
Name:
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Re: Settling with a collection agency
Thank you so much for this! When you say don't admit to the debt, what do you mean? I shouldn't say I want to settle an amount that is showing up??
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| Posted 4/30/12 3:36 PM |
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Mia
LIF Infant
Member since 1/12 133 total posts
Name:
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Re: Settling with a collection agency
And of course I just ran a different credit company and I found more, ugh!!! One is for a funeral home for when his father passed away, shouldn't the mother be responsible for that and not him, stressed!!
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| Posted 4/30/12 4:02 PM |
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MrsS1976
LIF Adolescent
Member since 5/11 534 total posts
Name:
M
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Re: Settling with a collection agency
Posted by Mia
Thank you so much for this! When you say don't admit to the debt, what do you mean? I shouldn't say I want to settle an amount that is showing up??
You dont want to give your rights away by admitting to the debt as soon as you are contacted by a collection agency. By asking for valudation, you want to say "ok, you claim I owe $__ but I am not aware of this. Please prove it."
This puts them on notice that (1) you're not a dummy and (2) you are asking them to provide you with proof that a debt is actually due, how many days/months its due, and what amount you must pay to satisfy it. Under the FDCPA, these agencies are not allowed to call or harrass you - especially if there was no written notice of the debt actually provided. If they refuse to valudate the debt, then you have a cause of actio to sue them. Most of these agencies are out of state, so you can couner-sue them and most of them default in court, and you may even have the entire debt DISMISSED in a court of law.
I am not a consumer collection attorney, but I have seen this happen a lot in court because the person owing the debt assumes the agencies are within their rights to harrass you. They are not. Make them prove the debt is valid by either having them send you a formal letter stating the above terms.
If I were you, I would:
Demand complete deletion from your credit files.
File a lawsuit against them for violation of the FDCPA and FCRA.
They will likely pay you $1,000 to make the lawsuit go away and also delete everything negative from your credit files. It is not worth it for them to fight over such small amounts. (I'm assuming its a small amount like under $2,000 or so).
The credit boards are a great resource, I am sure there are lots of great tips on there too.
If you've already admitted to the debt (by either answering the phone calls or acknowledging you owe the money), your next recourse is to negotiate a fair settlement of that debt.
I would make it clear when you talk to these agencies that what you are offering is NOT an offer of payment. You consider the payment a nuisance SETTLEMENT offer. Otherwise they might send you a 1099C for forgiven debt, then the difference is considered income by the IRS.
Message edited 4/30/2012 5:55:34 PM.
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| Posted 4/30/12 5:44 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: Settling with a collection agency
Posted by MrsS1976
Posted by Mia
Thank you so much for this! When you say don't admit to the debt, what do you mean? I shouldn't say I want to settle an amount that is showing up??
You dont want to give your rights away by admitting to the debt as soon as you are contacted by a collection agency. By asking for valudation, you want to say "ok, you claim I owe $__ but I am not aware of this. Please prove it."
This puts them on notice that (1) you're not a dummy and (2) you are asking them to provide you with proof that a debt is actually due, how many days/months its due, and what amount you must pay to satisfy it. Under the FDCPA, these agencies are not allowed to call or harrass you - especially if there was no written notice of the debt actually provided. If they refuse to valudate the debt, then you have a cause of actio to sue them. Most of these agencies are out of state, so you can couner-sue them and most of them default in court, and you may even have the entire debt DISMISSED in a court of law.
I am not a consumer collection attorney, but I have seen this happen a lot in court because the person owing the debt assumes the agencies are within their rights to harrass you. They are not. Make them prove the debt is valid by either having them send you a formal letter stating the above terms.
If I were you, I would:
Demand complete deletion from your credit files.
File a lawsuit against them for violation of the FDCPA and FCRA.
They will likely pay you $1,000 to make the lawsuit go away and also delete everything negative from your credit files. It is not worth it for them to fight over such small amounts. (I'm assuming its a small amount like under $2,000 or so).
The credit boards are a great resource, I am sure there are lots of great tips on there too.
If you've already admitted to the debt (by either answering the phone calls or acknowledging you owe the money), your next recourse is to negotiate a fair settlement of that debt.
I would make it clear when you talk to these agencies that what you are offering is NOT an offer of payment. You consider the payment a nuisance SETTLEMENT offer. Otherwise they might send you a 1099C for forgiven debt, then the difference is considered income by the IRS.
What she said x100
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| Posted 4/30/12 10:06 PM |
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Mia
LIF Infant
Member since 1/12 133 total posts
Name:
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Re: Settling with a collection agency
So do I send them a letter saying let's settle at this amount, I've read it should be .25 on the dollar, with the agreement that they delete it from my husbands record? They aren't harassing us, I just need everything to be cleaned up.
Thanks so much!!
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| Posted 5/1/12 11:55 AM |
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