Debt question.?

Question

I am trying to catch up all my debt after being unemployed for a lengthy time(lay off). I have been getting calls from third party debt collectors. I do not not do business with 3rd parties. Isn't it my right to deal with the company I owe money to directly instead of dealing with these low lifes?

I am not trying to get out of my debt, I am going to pay it. I am just choosing to pay the company I owe the debt to directly instead of dealing with an uninvolved 3rd party. I have paid 2 debts already directly to the company I owed, yet I continue to get calls from a 3rd party trying to collect on the very same debt.

It is the same balance. A 3rd party company called me regarding the debt. Instead of paying the sleezy 3rd party, I called the company directly I owed the money to and paid them since it was who I did business with first. I do not deal with 3rd parties, I am paying the companies I originally did the business with. But the 3rd parties keep trying to collect on the same debt.

Answer 1

I am currently using the Debt Management Plan at moneymanagement.org. They are part of National Credit Counseling and are the only debt service that Suze Orman recommends on her site. They are a not for profit agency.

Here is a link to Suze Orman recommending that agency.

http://www.suzeorman.com/igsbase/igstemplate.cfm?SRC=MD012&SRCN=aoedetails&GnavID=84&SnavID=20&TnavID=&AreasofExpertiseID=5

Answer 2

When you say that they're collecting on the "very same debt" do you mean the actual balance you've already paid, or the third debt to the same company? If it's the actual balance already paid, ask for the 3rd party debt collector's business name and address when they call next time. Mail them a certified letter demanding proof that you owe the debt. If they don't respond in 30 days, they are no longer legally allowed to attempt to collect the debt. Threaten to sue them (and maybe actually do it) any time they call you after the 31st day.

If they mail you proof of the debt, mail (again by certified mail) a copy of the canceled check showing that you paid it. Once that happens, they must leave you alone. If they don't, threaten to sue them. If you're feeling particularly honery, you can actually sue them. I wouldn't necessarily recommend it though; lawsuits are painful, time-consuming and expensive.

Answer 3

Think of third parties as an escalated situation. It's kind of like if you go into a retail store, and the cashier is really rude, and you say, "I want to speak to your supervisor." The credit card company is the customer, and the supervisor is the third party.

In this scenario, you are the cashier. You haven't paid your bills according to the credit agreement, and regardless of the circumstances, the credit card company has decided to pull the "supervisor" card.

The only way to get the supervisor to go away is to make arrangements with them. Remember, the third-party collection agency WANTS you to pay, because they get a percentage. So call them and tell them a plan- if you can afford $50 a month, call and tell them that. They want to collect money for their client.

You may have to get a second job in the meantime while you take care of this situation, but it will feel very good to get out of debt, and you can do it. I just paid off my last credit card, and I had been in debt since 2001. I charged a quarter's worth of college tuition, and it was the worst financial choice I ever made. My underemployment didn't help things. But you too can get out of debt.

Good luck.

Answer 4

I understand that you want to pay the orginal company, but you may not have that option anymore. In many cases, these collection agencies acutally buy the debt from the orginal firm. In that case you no longer owe the original creditor. You owe the collection agency. Period.

Think about it this way. You loan your friend $100. He doesn't pay you back. Now someone comes to you and says, I'll give you $50 cash right now and I'll take over the loan. You're happy to get hlaf the money back and you walk away. Even if your friend gave you the $100, it's not yours. It belongs to the new owner of the debt.

Answer 5

Companies sell debt on to third parties when they realise they cannot get it back themselves. This can be bought by a third party in two ways, either for no cost but the original company gets say 40% anything they can collect, or they can buy the debt for say half its value.

If they buy it for half its value they will come after you more aggresively

Answer 6

not really, but you usually can tell them not to call you any more - at that point, they usually have no choice but to sue and get a judgment against you (plus applicable attorneys fees and costs).