How To Negotiate With Debt Collectors
When you are being contacted by debt collectors it can be very aggravating. It can cause you to change your number, change your job, and even move.
This frustration is ten fold if the debt is not your debt. It is common for a lender to make a mistake and your account to go into collections. Trying to explain that the debt is not yours to a collector is next to impossible. This is because their motive is only to collect money not to fix mistakes.
If you are a victim of a lender mistake then you should immediately request validation of the debt. Do this through certified mail so you have documentation that you letter was in fact received.
Do not request validation over the phone because it is often ignored. In addition you only have 30 days to request validation of a debt once you are notified.
It is not uncommon for debt collectors to sell your debt to another agency instead of validating it with the lender. This is why we suggest you send your letter through certified mail because that way you may be able to file a civil suit against the debt collector.
Instead I suggest you hire a credit service to dispute the negative credit items that the debt collectors have posted on your credit report. This way you will prevent your score from being damaged due to a lender mistake.
If the debt is valid then you should settle it. You should start your settlement offer at approximately 50% of the balance.
Start at 50% of the balance because the collector bought your account for a fraction of the balance. Also this will notify the collector that you are willing to pay you just need to agree on a price.
You will need to have the collector agree in writing that they will remove the negative item from your report in exchange for your payment. If this is not done then the item will change to a paid collection and it will still be seen as a negative mark on your credit by future lenders.
In sum I suggest a service to repair your credit report of debt collectors.
This frustration is ten fold if the debt is not your debt. It is common for a lender to make a mistake and your account to go into collections. Trying to explain that the debt is not yours to a collector is next to impossible. This is because their motive is only to collect money not to fix mistakes.
If you are a victim of a lender mistake then you should immediately request validation of the debt. Do this through certified mail so you have documentation that you letter was in fact received.
Do not request validation over the phone because it is often ignored. In addition you only have 30 days to request validation of a debt once you are notified.
It is not uncommon for debt collectors to sell your debt to another agency instead of validating it with the lender. This is why we suggest you send your letter through certified mail because that way you may be able to file a civil suit against the debt collector.
Instead I suggest you hire a credit service to dispute the negative credit items that the debt collectors have posted on your credit report. This way you will prevent your score from being damaged due to a lender mistake.
If the debt is valid then you should settle it. You should start your settlement offer at approximately 50% of the balance.
Start at 50% of the balance because the collector bought your account for a fraction of the balance. Also this will notify the collector that you are willing to pay you just need to agree on a price.
You will need to have the collector agree in writing that they will remove the negative item from your report in exchange for your payment. If this is not done then the item will change to a paid collection and it will still be seen as a negative mark on your credit by future lenders.
In sum I suggest a service to repair your credit report of debt collectors.
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For information about credit repair services or to read an article about how to remove credit card judgments visit us.
posted by Credit Counseling at
6:27 AM
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