How To Deal With Debt Collectors
Phone calls and other communications from debt collectors can be incredibly frustrating. They will cause some to change numbers and even move just to avoid it.
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 in this position then you should request validation of the debt. I strongly suggest you do this through certified mail so you have documentation that they did get your debt validation letter.
Do not ever request you validation over the phone. This is a very ineffective method because it is often ignored and you are only given 30 days to request validation of a debt once you are notified.
In addition it is becoming common for debt collectors to sell your account if you request validation. This is why I suggest you request validation through certified mail so you can prove that your request was ignored.
Instead I suggest you hire a credit repair firm to dispute and remove the bad credit items that have been posted to your credit report. This way your credit score will not be ruined because of a lender mistake.
If the debt is valid then we suggest you settle it. This is done through a settlement letter to the collector; we suggest you offer 50% of the balance.
Do this because the debt collector has purchased your account for a fraction of the balance. In addition you are showing the debt collector that you are willing to pay if you can agree on a price so they will negotiate on the balance.
You should also request that the debt collector remove the negative listing they created on your credit report in exchange for your payment. Failure to do this and the negative mark will change to a paid collection. This is still seen as a bad credit item by lenders and will not improve your credit score.
In sum, I suggest a service to repair you credit from 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 in this position then you should request validation of the debt. I strongly suggest you do this through certified mail so you have documentation that they did get your debt validation letter.
Do not ever request you validation over the phone. This is a very ineffective method because it is often ignored and you are only given 30 days to request validation of a debt once you are notified.
In addition it is becoming common for debt collectors to sell your account if you request validation. This is why I suggest you request validation through certified mail so you can prove that your request was ignored.
Instead I suggest you hire a credit repair firm to dispute and remove the bad credit items that have been posted to your credit report. This way your credit score will not be ruined because of a lender mistake.
If the debt is valid then we suggest you settle it. This is done through a settlement letter to the collector; we suggest you offer 50% of the balance.
Do this because the debt collector has purchased your account for a fraction of the balance. In addition you are showing the debt collector that you are willing to pay if you can agree on a price so they will negotiate on the balance.
You should also request that the debt collector remove the negative listing they created on your credit report in exchange for your payment. Failure to do this and the negative mark will change to a paid collection. This is still seen as a bad credit item by lenders and will not improve your credit score.
In sum, I suggest a service to repair you credit from debt collectors.
About the Author:
For a review of Lexington Law a suggested credit repair service visit us, or to see an article about credit repair letters.
posted by Credit Counseling at
5:15 PM
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