For anyone who works in Debt Collections...question for you??

Question

Ok, I have a credit card that has been turned into collections. The balance is 904.93, at first the collection agency tried to get me to pay all of it! I told them that I didn't have that kind of money just "laying around" and I couldn't pay it. So the operator put me on hold while he talked with my creditor, and came back and said ok, they will settle for 723.94. I told him I still didn't have it, which I honestly don't. I had to do everything but pull teeth to get him off the phone so I could figure out what to do and now I'm supposed to call him back tommorw morning. Now, did he go down on this far enough? Can they go down more? Is there a certain percentage they MUST collect, or is he being cool about this? What do I tell him tomorrow morning when I talk to him. I'd hate to pay 723.00 when I really only am required to pay 500.00 which was my limit on my card. Know what I mean? Any help would be greatly appreciated! Thanks!

Answer 1

As stated, it was probably sold next  to nothing. Also find out what the statue of limitation is in your state. If it past, they can not sue you. If the SOL is still open, and if you want to settle for $500.00, tell them you want the account credited and you want in writing. If they refuse to put it in writing, there is nothing else you can  do.

Answer 2

Not a collector, but been in your shoes and the longer you wait to pay, the lower they go with their offers, usually down to about 60% of what you owe.  

Even when they finally take you to court, which they most likely won't do for $904.93,  you still have time to settle before the court date, usually about a month, in my experience.  

You are confused about what you are required to pay though, you have to add interest on the $500, over the limit fees, late fees, and the like; so what you owe will keep going up until you pay, one way or other.  The longer you take to pay it the worse impact it will have on your credit score.

Search on the name of the collections company and you will find out more information as to their specific behavior.

Good luck.

Answer 3

offer them the$500 in equal monthly amounts you can afford. Get it in writing first before you send them a dime. Do not give them your bank account number ever pay by money order and keep receipts as proof and the letter as well as they are quick to place this on your credit and slow to report paid

Answer 4

I am a loan officer in Texas.  With the mortgage market in its current condition, I have to help my clients raise their credit score before shopping them around for a mortgage.  Let me disclose clearly that I am not an attorney and am not giving you legal advice, but I have been practicing the following technique when dealing with creditors and it has been working very well:

1. NEVER talk with a creditor/collector on the phone.  They are professional liars and will tell you all sorts of b.s. Only deal with them by "snail mail".  Send your letters "return receipt requested" and keep a copy of everything.  Never send originals.  Do not force them to sign for a letter because they may refuse it and you've just wasted precious money and time.  

2. A COLLECTOR IS NOT AN AUTHORITY!  Remember who you're dealing with.  This collector has no authority over you in any way.  They are preying on people with a conscience.  If you feel guilty about not paying a debt, they're going to pounce on that and scare you into thinking they're going to garnish your wages, sue you, and put you in jail.  Don't EVER EVER EVER give a collector any information about you including any other account information.  Don't agree to make a payment on the phone by reading them your checking account numbers or another credit card number or give them ANY payment or account information in ANY way.  They will more than likely tell you they're taking your first payment of $50 or something then charge $500 or more.  Don't EVER EVER EVER give them payment information or information about other accounts.  

3. In many states, your wages can't be garnished (they can't make a deal with your employer to take your money out of your check before you get it) except for taxes or child support.  There are exceptions to this and you should check with an attorney for your rights under your state laws.  

They're not going to sue you for a few hundred dollars or even a few thousand because the cost of suing you, paying attorneys and so forth is much greater than anything they would be able to collect.  If you owed someone $10,000 or more and you had a lot of assets (owned a lot of real estate or something) where they could get the money, then they probably would sue you.  But, for a few hundred or even a few thousand dollars, they won't waste their time.  

There is no such thing as a debtors prison.  If you owe money and they put you in jail, how can you earn the money to pay them?  It's your fault, not your family or friends, so the law can't punish your family and friends and make them pay to get you out.  However, many collectors will do some research on you and find the names and addresses of your family and quote them to you on the phone to scare you into thinking they're going to start calling your family.  The worst thing they can do is sue you and get a judgment against you while ruining your credit, but I've already explained why they won't sue you for such a small amount of money.  

4. To get a creditor off the phone, hang up on them.  Don't feel bad, it happens to them all the time.  

5. Get a copy of your credit report from all three bureaus.  You can do this for free once annually from www.AnnualCreditReport.com.  NO other site is actually free.  If you already got it once in the last year, just snail mail off to Experian, Equifax, and TransUnion and purchase a copy.  

6. Using the addresses listed on your credit report, mail the following letters:

6a. To remove inquiries on your report from a collector:

On mm/dd/yyyy, you obtained my credit report from (name of credit bureau).  I have not done business with you and decline your invitation to do business with me.  Unless you can produce a written agreement within 30 days showing your legal authority to force me to do business with you, I demand that you cease and desist all collection attempts and/or collection activity and return this account to whomever you obtained it from.  I further demand that unless you can produce some written agreement between us within 30 days showing your legal authority to force me to do business with you, that you immediately and permanently remove the inquiry that you placed on my credit report or overnight me a cashier's check for the $1,000.00 penalty allowable by law for the damage you have caused me.

6b. To remove the entry from your credit report, find a mistake on the report.  Creditors and collectors often make mistakes on the date of last activity, or the account amounts.  Object directly to the bureaus (don't quote any laws...believe me, the credit bureaus know the laws and it just makes them not want to help you) and show any evidence that you can to support your claim.  

7. Be sure to send the required identifying documents when dealing with these creditors/collection agencies/credit bureaus.  You can call them and ask them what they require, but don't talk to them about anything regarding your account or alleged debt and NEVER admit that you owe anything -- to anyone.  

8. Just because you got it removed from your credit report doesn't mean you don't owe the money. PAY IT OFF as quickly as you can or another collector will get the account and force you to go through all this trouble to get them removed from your credit report too.  Not to mention the annoying (and deceitful) phone calls and letters.  

Deal only with the original creditor (the one that issued the card) and offer to settle for 25% of what you owe.  If they don't accept that, negotiate up to about 50% of what you owe.  They'll usually take that.  Include in your letter where you're offering a settlement that you are offering this settlement on the terms that they'll report your account as paid and remove any late payments or other derogatory entries on your credit report.  They may not remove the negative entries, but they'll at least report it as "paid as agreed" which is much better than "charge-off".  

It takes some time and most companies (including the credit bureaus) work in 30 day cycles.  I don't think it's possible to do it any faster than maybe 60 or 90 days, but you'll probably only spend a total of 2 or 3 hours writing letters and collecting documents to fix this whole ugly situation.  

More quick tips:

Check with your local BAR Association, colleges, and public defender's office to see if they have a "free advice" time.  Quite often the local BAR Association will offer a free service to the community to come in and ask a lawyer some questions for free or really cheap (like $20 or something).  Many of the people there are recent graduates and have a law degree but little experience.  It's great to be able to ask them questions about your particular state laws.  Bring your documentation with you when you go.  

Good luck and if you want more info, email me:

houstoncreditfix *at* gmail *dot* com

Answer 5

When something has been turned over to a debt collection agency that is what is viewed as a last ditch effort to collect the money. Usually most companies have written off these amounts. Call the credit card company and tell them you will begin to pay off your balance of $500.00. Yes, these companies earn a fee based on the amount of time it takes them to get the debt paid off and it progressively gets smaller as time goes on.

Answer 6

First - don't acknowledge the debit it yours

2nd - determine it the statue of limitations on the debit has expired.  If it has you do not have to pay anything

3rd realize this company has 2 income streams coming in.

      The first - they are not the credit card company, but a company that purchased your debit for pennies on the dollar.  They may have paid .10 to .40 cents on the dollar.  Anything they make above that about is commission for the collector who called you, and profit for the company.

  Second they will write off any amount you get "discounted as income to you on there taxes - creating a tax liability to you.  So add 20 to 34% to whatever offer they make.

It may help your case if you explain to the company you are away of the profit structure, and are willing to let the deit expire.  As long as you make no payments on the account the age of the debit will not start over.   Many of the southern states have stautory limits of 3 years.  

Also be aware the collector will report this as a paid collection.  You can request that they remove it completely - it is perfectly legal.  Make sure you get that in writing that it be removed completely - do not take their word for anything.  They wil sell the debit to someone else at .10 cent less than they paid for it, and the whole process starts over.

Credit industry is corrupt

www.dollarcollapse.com