I owe some outstanding Credit card debt. It has gone to a collection agency. Is it true that i can negociate down the amount that they are asking for? How do I go about doing this?
2006-09-20 01:13:29 · 13 answers · asked by tijas2 2 in Business & Finance ➔ Credit
If you are ready to pay a good percentage of the balance up-front, you should try to do a pay-for-deletion letter.
You may find yourself in a situation where you need to pay a collection account. Maybe you have to for a home loan or perhaps the item is not coming off your report and it is quicker to just pay.
One tactic you should ALWAYS try first is: Pay for Deletion
Basically, you tell the collection agency that you will pay (in full or a %) in exchange for deleting the item from your credit report. It is a simple form they have to fill out to do it and it is done ALL the time. Some collection agencies will try to lie and say they can't do it. They are really just saying, they don't want to.
You need to ALWAYS get it in writing. If not, you have no legal ground to stand on. Below is a sample pay for deletion letter. You may need to call the collection agency and talk to them. Your money is your leverage.
In no case should payment be sent before you have a signed agreement in your hands.
This letter is just an example, you can and should modify it to your desire.
2006-09-20 05:50:21 · answer #1 · answered by DaMan 5 · 0⤊ 0⤋
More than likely, your account was bought from the original creditor for cents on the dollar. With years in the industry, best advise is to try to start as low.You need to have cash ready to throw at the creditor for a settlement offer to work. Try settling at 20% and work your way up. Most will settle for around 50% depending on how old the debt is.
BEFORE YOU SETTLE...GET THE OFFER IN WRITING FROM THEM! Never, ever, ever, ever negotiate over the phone and not get it followed up in writing. It will be their word against you only after they have your money. If it's not in writing, they will take your money and then later on down the road ak for the remaining balance.
After you have paid them, make sure you get a letter stating so. Also, give it 60 days then check your credit bureau out to make sure that it is reflecting correctly.
Good luck!
2006-09-20 08:26:03 · answer #2 · answered by ? 1 · 0⤊ 0⤋
If they sold the account to a collection agency , no matter what they say you owe them nothing because the contract was between you and the original lender. They will try to scare you into paying. PAY THEM NOTHING. If you want to fix your credit only pay the original lender, never, ever anyone else. Always ask the original creditor if they sold your account if they did then don't pay anything.
2006-09-25 21:13:46 · answer #3 · answered by Mr.Morgan 4 · 0⤊ 0⤋
If a creditor agrees to lower your debt over the phone, request the agreed amount in writing.If you pay the amount by check or money order, write " account is paid in full per your letter agreement " in the memo field or somewhere visible. Also list the date the letter of agreement was written and who wrote it. Keep a copy in a safe place in the event you need it later.
2006-09-26 03:41:12 · answer #4 · answered by RY 5 · 0⤊ 0⤋
Yes. Just contact the collection agent IN WRITING and ask for a settlement for a delete from your credit report. Better to send a letter than over the phone because you have proof if they respond with your resolution. Over the phone, they can say they never agreed to it and you have no proof. Done it a few times already and my scores have increased dramatically. Plus, it settles old debts from your account.
2006-09-20 14:33:32 · answer #5 · answered by Shorty 1 · 0⤊ 0⤋
you don't need anyone to do this except yourself. you need to talk to the people who own your debt now. you simply say you will pay this much to settle the debt. to really improve your credit you will settle on an amount to pay for deletion from your credit report. no matter what you do, after you reach an agreement, you will need it in writing. you need proof that the debt will be settled after you agree to an amount. they will tell you that they can't settle for less but they can and will if you stay persistent.
2006-09-20 10:16:47 · answer #6 · answered by bella_4624_19 4 · 0⤊ 0⤋
Yes, but you need a third party to do so. You need a professional Representative to negotiate with creditors. You will need to know what you can pay in one lump sum and have the money available.Keep in mind this doesn't always work. It will depend on the willingness of the company to work with you.
2006-09-20 08:28:55 · answer #7 · answered by Lady 1 · 0⤊ 1⤋
What usually happens in this case is that your bad debt was sold to another collector. They then own your account. You can always try to negotiate to get this paid and usually they will send you a discounted settlement offer.
2006-09-20 08:16:38 · answer #8 · answered by nicknamegone 1 · 0⤊ 0⤋
Get in touch with a non-profit consumer credit counseling agency. They will helpl you without charge. Beware of the ones that charge a fee.
2006-09-20 08:22:18 · answer #9 · answered by L96vette 5 · 0⤊ 1⤋
Tell them you can only pay a portion and they will tell you how much the will accept. Have them put it in writing. also. Don't let them harras you. They can not yell and scream and if you writ telling them not to call you they have to stop. But they can contact you by mail. Good luck
2006-09-24 11:30:35 · answer #10 · answered by mss04 3 · 0⤊ 0⤋