Collection Agency Advice - What Should I Do?

Question

I have a debt that I have been disputing for about 2 years. Recently, I received a phone call from a new Collection Agency who has stated the account will be sent to arbitration before the beginning of the year if I do not pay $4000, which is close to the amount I actually owe. In the past they have been saying it was $8000.

I would like to pay that amount and solve this problem once and for all.....however, I am not able to do so in the 2 weeks they have given me.

Is there anything I can do to delay the process before it goes to arbitration?

It seems the owner of the debt keeps switching collection companies everytime I seek verification of the debt. The current company has only been managing this debt for less then a week. They claim they do not need to verify the debt.

What should I do?

Answer 1

is the debt really yours if not sue the person who is sending it to collections if it is as long as it has been in dispute check for the statue of limitations on debt collections I almost paid a interest debt I didn't owe just to just them off my back before I learned that they could not collect it any longer I don't know if those laws have been changed or not but it sure was fun telling them where to go also if you did NOT make the original debt you are not liable to pay it you can sue the companies that place incorrect and damaging information on your credit report for defamation of character ( by the way collection agencies say things like this all the time to worry you and arbitration doesn't mean you will have to pay a debt you don't owe ) if you do feel you owe the debt however just make a payment and if they don't accept it and try arbitration any way it will make them look stupid and you will get whatever payment arrangements you want and the owner of the debt may no longer be able to provide verification which would mean he cannot collect the only way they can force you to pay is if they can prove you owe the money if they cannot prove they can't collect if I loaned you 1,000.00 and didn't get it in writing and tried to take you to court the judge would rightfully tell me to get out and leave you alone also if you asked for damages you would probably recieve everything you asked for and more ( depends on how annoyed the judge got )

Answer 2

If you are in agreement with this amount have them forward you this information in writing and agree to and initiate a payment plan. Any collection agency (legitimate) will accept this. Collection agencies operate on a "cash flow" basis so payments are just fine for them.

Also you say the owner of the debt keeps switching collection companies. Over the 2 years your case has been in dispute, the original owner more than likely no longer owns your debt but sold it to a collector... especially true if collections is not being done in-house. Don't count on being able to have any further discussions with the original owner but deal directly with the company who most recently contacted you and discounted the amount.

Be certain to obtain ALL arrangements and the stated debt amount in writing... not over the telephone.

Good luck and Happy Holidays.

Answer 3

First and formost they keep sending you around when you seek verification because the company then puts it on hold then returns it---if it is time you seek ask them to send you this settlement offer broken down in 3 install ments over ninety days--tell them you want it in writing otherwise you cannot and will not make a payment they will play their hand and tell you it will go to an arbitrator would would surely see your demands as reasonable. Therefor in their interest to get paid they would accept your counteroffer.

Answer 4

and everytime they sell this note to another agency,each agency gives you a bad report on your credit.been there done that.i have one bad bill but it shows up like 6 times cause they keep selling the note(which is bogus cause it was paid and i have the reciept)
They Do have to prove the debt.now if you have an actual amount due keep it,,,send them what you can,they can't refuse the payment nor can they increase the amount once they accept it.tell them it's all you can send and you'll do it monthly but,,make sure you keep the original statement that says 4000.00 so they can't say it's 8000.00 later.

Answer 5

Don't worry about arbritration... They might find you owelessthan theamount. Unless they get a judgement in a court of law there's nothing they can do but make the calls to you

Answer 6

Call them set up a payment plan... seek a credit counselor (non profit)