Saks account in collections?

Question

I have a Saks account that is in collections from about 7 years ago and I just got a call this morning from a new collection agency that is handling the case. They informed me that if I do not setup anything by 12 PM today that they would recommend the case to go as an involuntary collection. I personnally have never heard of this and I am unaware as to what happens in that situtation. I do know that collection agencies do use terms and tactics at times to scare people into paying their debts, and I have full intentions of paying mine i just cannot afford to do so right now. Can anyone shead some light on this for me and advice on how I should handle this. I also know that they will accept a settlement, what method should I use to get the lowest settlement payment when I can afford to pay it off.

Answer 1

Using that tactic to try to get you to pay is illegal.

Order your credit reports and make sure they haven't re-aged the debt and are reporting it. If it has been 7 years from the first time you became 30 days late and never brought the account current leading to the charge off it should not be reporting.

By law they have 5 days after speaking to you by phone to send you a letter by mail concerning the debt

Check your states collecting SOL (you can click on my profile and click on the link listed to find your states SOL, which is open accounts for credit cards)

Before you start talking payment with them, you should request debt validation from them. Make them provide proof, among other things, that the amount of the debt has not been illegally inflated, that it is your debt, that they are licensed and/or bonded to collect in your state if your state requires it, that you have not passed the legal collecting SOL and that they have the legal right to collect the debt.

Never sign any letters that you send to a collector, only print your initials or type your name.
Everything you send to them should be sent certified mail return receipt.

If they have placed it on your report, after you get the signed green card back, file a dispute with the CRA's.

If you are past the collecting SOL for your state you have two options.
One would be to send them a SOL letter that informs them the account is past the collecting SOL for your state and no longer legally collectible (and they should take a hike)
The other option is to pay.

If you are still in SOL or not and you decide to pay, you should demand that they delete anything on your reports if they are reporting.
You should also demand to make a partial payment as "payment in full"

If you are past SOL and want to pay instead of sending the SOL letter, you can probably demand to pay quite a bit less since the only way they can "legally" get paid anything on the account is by your offer to pay.

"Never" pay until you have a signed agreement from "them" stating that they will remove what they have placed on your reports AND that they will agree that your payment is "payment in full"
Otherwise you will have to fight the CRA's to remove what they are reporting AND after payment you may find another collector trying to collect for either the full amount or the remaining amount if you make a partial payment. (yes, paying one collector then finding another trying to collect does happen)

Never pay by personal check, pay by money order or cashiers check.

You might do some reading in the other links I have listed, especially the last link. You can also find sample letter templates in that link.

Answer 2

for starters don't argue with these people - people think they can intimidate bill collectors by being tough- i can assure that tactic will not work. i would respectively request to them what is their policy for settlements? more then likely the agency that contacted you bought the receivable from SAKS or even another collection agency and unless they are a local company they will do nothing other then call you and send mail and put this on your credit. if they account is not settled then unfortunately it will probably go on your credit for seven years by these folks (i know i'm in the business and i would do it to you also) - if you can't do the settlement in one payment ask them if they would accept a settlement in two-three payments. let me assure you that all these people want is for you to pay this so they can go onto someone else who isn't paying them. i hope this helps.