How To Negotiate 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 will quickly be multiplied if the debt is not a valid debt. It is not uncommon for a lender mistake to cause your account to go to collections. Unfortunately explaining this situation to someone that has already paid money for your debt is not a recipe for success.
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 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.
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 we suggest you settle it. This is done through a settlement letter to the collector; we suggest you offer 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 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 will quickly be multiplied if the debt is not a valid debt. It is not uncommon for a lender mistake to cause your account to go to collections. Unfortunately explaining this situation to someone that has already paid money for your debt is not a recipe for success.
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 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.
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 we suggest you settle it. This is done through a settlement letter to the collector; we suggest you offer 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 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.
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For information about credit repair services or to read an article about how to remove credit card judgements visit us.
posted by Credit Counseling at
10:37 AM
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