Hi. A friend has a late Credit card debt, and got a call from what she thought was a collections agency. She specifically asked, and they said they were a collections agency, not affiliated with the bank holding the card. Then they refused to deal in writing, and within a few days renigged on the deal they had offered her, and are threatening litigation. Turns out the company IS affiliated with the bank holding the card. They say she "missed out" on the chance to negotiate.
We are going to fight this. What can we do?
Thanks in advance...
2007-02-09 15:24:59 · 7 answers · asked by Baila C 1 in Business & Finance ➔ Credit
Try this website for some legal tips. It's mostly geared toward business to business credit, but some of the laws also apply to personal credit issues...
http://www.creditmanagementworld.com/legal.html
2007-02-10 18:54:56 · answer #1 · answered by pagamenews 7 · 0⤊ 1⤋
My husband worked in corporate collections for 10 years. Here a just a couple of pointers. You have a right to ask for everything in writing. You also have the right to NOT answer their calls. They are required by law to inform you if they are recording the conversation, and if they are recording, you have a right to the transcripts of your call. In addition, if you agree to make payment on a past due account, or have made ANY payments of any kind (even $10 a month), it shows you are "in good faith" trying to settle your debt, and legal action against you will not give them anything more than that. Often times, Credit Card companies have a department that handles internal collections, and while they are part of the company, it's a subsidiary and so can call it's self another company even though it may be part of a larger parent company. Here's what I'd do, first get all the paperwork together. How much is owed, all statements, when did it go past due, keep track of all phone calls (you should be able to get a list of calls from the phone company to show when the calls came in - which may take a letter and some repeat phone calls to get). Then, I would put together a letter saying that you intend to pay the debt, but can't pay the entire debt at one time. Include a payment of some sort with a payment schedule attached. In addition, you could also write a settlement letter and include a check with Paid In Full in the "memo" section of the check. (I'd try about 60% of the total due amount). Keep copies, and if they cash the check, they accept that the account is paid in full.
Finally, if your friend is in serious financial problems, consider going to a non-profit credit counseling agency to get help balancing her budget and setting up a payment schedule. Consumer Credit Counseling is a great service.
One last thing, be sure that your friend owes what they say. Look for "service fees", and "late fees", and other "fees" like processing fees or collection fees. I would subtract all of those in any offer to the credit card company. Those are voluntary fees charged by the company and you can negotiate those.
Best of luck to you. Credit card debt can be scary.
2007-02-09 15:37:21 · answer #2 · answered by Susan B 3 · 0⤊ 0⤋
The most efficient benefit of availing the service is this will help you to concentrate on business only without losing productivity of your company. The debt collected by an organization usually has highly experienced and specialized debt collectors, they never damage the relationships between you and your customer while collecting money. So when you have hired a debt collection agency, rest assured that you will be able to have your money without admitting any guilt. Note that, every debt collection agency follows specified guidelines, while making the recovery.
2016-05-24 20:19:53 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Dear Friend,
I had the same experience with my credit . A guy from an collection agency spoke to & my family members in filth.
As long as we pay on time thingsa re ok. But the moment we delay we get filth. this is the ethics of the modern world now a days. I was thinking why could not stisfy with I had & earn. I realized that it is always to be better not to take any loans where we cannot handle.
Specialy credit cards are a pain in the a...
2007-02-09 15:33:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Find a good lawyer in the phone book. Tell them you are willing to negotiate otherwise they can call him. They'll start negotiating real quick. They're phone logs can be used in court, and may show deceptive practices.
If you have caller-ID and a compatible voice modem, here is a free program that will answer a call based on the number, and play a message like the "the number you have dialed is no longer in service. If they can't speak to you via phone, they *have* to correspond via mail.
*Note, I have only had success with the Creative ModemBlaster on this.
http://phonetray.traysoft.com/
2007-02-09 15:32:34 · answer #5 · answered by Frankie P 4 · 0⤊ 0⤋
What they said over the phone cant be proven in court so forget about that part.
Write them a letter and give them an offer of settlement. If they refuse a written request to settle, then you will have to pay this debt. Thats my common sense answer I am not a lawyer. You may have to see one
2007-02-09 15:31:08 · answer #6 · answered by Mr. love 3 · 0⤊ 0⤋
The next time the company calls her she needs to tell them immediately that the conversation is being recorded and the number traced for legal purposes. They have no right to harass or harangue her.
2007-02-09 15:30:10 · answer #7 · answered by daffodil 5 · 0⤊ 0⤋