What happened to the remaining amt and how will this reflect on my credit report? Also. another creditor that I have, sold the acct to a collection agency and the amt that they are trying to collect is for a much higher amt, almost double. Can this happen? I will never be able to pay this off.
2006-08-09 18:29:58 · 6 answers · asked by mertz 1 in Business & Finance ➔ Credit
The creditor wrote the original amount off as a loss probably. Check your credit report and see if before you paid the status of the account was "charge-off" or "write-off". It will have an adverse affect on your credit still because it will probably be marked as "settled for lower amount" which still looks bad on you.
The collection agency is full of crap. You never ever ever want to give them the money that they ask for. They more than likely paid pennies on the dollar for the account and they try to scare people to pay them all that money. If you want to pay the collection you need to try and settle with them for no more than 50% of the original amount owed. Before you do that you should actually ask them to provide proof that they have control of this account and any original paperwork from the creditor, because how do you positively know that you owe them? If they do provide paperwork and you want to pay they usually are happy to settle. Never accept the first or second offer of settlement and try to stay at or below 50% of the original amount owed. Then if you do settle make sure that you ask them that if you pay them they will completely delete the credit listing because having a "paid" status on a collection is just as bad as having a collection at all.
The moral of the story is do not let the collection agency scare you. They threaten but they cannot charge you all that interest and fees and stuff that they are threatening they just think that people are dumb and will fall for it (and some do).
2006-08-09 19:15:19 · answer #1 · answered by Cris 2 · 0⤊ 0⤋
As an owner of a settlement company I hear the " scam accusation" everyday. It makes me want to pull my hair out. Debt Settlement is great for the right person/ the right company. Your going to get a lot of people throwing out opinions and playing like they are experts. None of which has any sort of actual knowledge or true experience in the debt, credit or banking industry. Reading a book and looking up a few web sites does not an expert make. Walk away from a high pressure sales person in this industry. When using a settlement company make sure they give you full disclosure and tell you everything.,,,, specific to your state. Be informed. Ask lots of QUESTIONS.. When it come to this industry there is not a single dumb question.. One big Question to ask is ... Who is your back office, how long have they been around. The biggest lie I hear is that your debt settlement company will and can make your creditors stop calling. If someone says that to you HANG up the phone. THEY ARE LYING Calls can be controlled but not eliminated. I have seen cases where debt was settle anywhere from( not the norm) 12 cents on the dollar to much as 80 cents on the dollar. There are a lot of factors involved with the amount that is agreed upon in the end settlement. Please feel free to email me any questions you may have I would be happy to make sure you have the correct answers and not just a great sales pitch from a debt analyst trying to get your account. Kourtnie Donihoo Prosperity Financial
2016-03-27 06:10:18 · answer #2 · answered by Anonymous · 0⤊ 0⤋
dealing with debt is different in different countries. I did not go through bankrupsy in Canada, but I made a "consumer proposal" and paid off my creditors about 40% what I owed. A Bankrupsy Trustee did the arrangements, and of course they made pretty good money too. Basically it was a take it or leave it offer.
In your case, the debt settlement company you dealt with should not have allowed any parties to sell their debt to a 3rd party....talk to them and demand some answers! They made money from you also. Try to get some free legal advise.
2006-08-10 00:49:09 · answer #3 · answered by cbmaclean 4 · 0⤊ 0⤋
your credit report will show account settled as agreed on the one you settled with. on the other thing... i dont know if you are obligated to pay the entire amount.. i would see if the original creditor would settle the account for the amount owed... if they wont, then contact the collection agency and tell them you will only pay the amount you owed to the original creditor plus a small collections fee... if they dont agree to this, make sure you dispute it with your credit reporting agency and note why you are disputing the amount...
2006-08-09 18:39:19 · answer #4 · answered by Resasour 4 · 0⤊ 0⤋
All thing is possible and most likely it is going the wrong way too.
Two articles I show in my resource box might have some input on your questions. Check it out.
Bottom line is get educated and choose the right settlement company that could really offer help
2006-08-10 10:49:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I agree with "Chris"
2006-08-11 02:25:38 · answer #6 · answered by hen d 2 · 0⤊ 0⤋