Remember: Bargaining with a debt collector is like being in a head on collision with a tough, professional negotiator. But there is good news when you get called or contacted by a debt collector. The debt just became negotiable even if you lack the skills to shrink it.
Tips that can help you keep ahead of these shrewd task masters.
Learn your rights.
When you know your rights the debt collectors
?know they can't bluff you ?Are less likely to try aggressive tactics ?Play fair
?Generally, if a debt collector has the debt, they have room to negotiate what you owe. Depending on the (1) state you are in, (2) the amount of the debt and whether the (3) debt collector owns the debt, you can sometimes negotiate the debt to 80% of what you owe. The key is also in the details of any settlement.
(1)If the debt collector is calling upon you in Michigan, Florida, Californian or Nevada right now, they have room to cut and negotiate because they know the economy in those states means there is little money. That is just an economic fact so get to finally use the bad economy for something good! (2)The higher the debt, the money room to cut. Again, see Number 1 and also know that generally the debt collector will not get a commission (that is how they get paid) or meet their monthly quota if they don't deal. (3)If the debt collector owns the debt they have probably paid 5 to 10 cents on the dollar so they can sometimes negotiate the debt way down. Again, find out if the debt collector owns the debt or is really just negotiating for the creditor (visa, discover, HSBC etc).
?Again, the key is where you live, how much the debt is and who owns the debt. Next, when you get a deal, make it contingent on:
If allowed in your state, tape the call if you can
Taping the conversation
?Keeps the debt collector on their best behavior ?Ensures that you have a record of the call
Make sure there's a record
?File all collection letters ?Keep detailed notes of collection calls ?Note the day and time of each call ?The name of the collection agency ?The first and last name of the caller ?Make a note of what was said ?get proof of the deal you've made with them
Get proof of payment agreement in writing
?Send a letter to the debt collector outlining the payment agreement ?send the letter via certified mail ?receive a receipt once the letter is delivered ?Keep a copy for your records ?If you pay by check, write on the check that Cashing that check constitutes payment in full
Wipe your credit clean
Ask a debt collector to ?Remove any negative information they've placed on your credit report ?List your account as paid in full rather than paid in settlement ?Get it in writing once they agreed
Don't be rushed
?Do not let a debt collector rush you to send them money immediately ?Resist all those demands and quick offers ?Don't pay until you have confirmation of a payment agreement in writing
Negotiate at the end of the month
Commissions for debt collectors are based on what they do each month.
If you negotiate at the end of the month you would get really a good deal.
Good luck. I will get some more stuff and hints to you along the way. Call us at 800 737-2345 if the debt collector breaks the law and you want them To Pay You!
The state Consumer Protection Act prohibits some debt collection practices. When dealing directly with you, creditors and collection agencies may not:
Call you more than twice for each debt in each 7 day period at home, or call you more than twice for each debt in each 30 day period at someplace other than your home.
Call you without identifying both the name of the creditor and the name of the person calling.
Call you at times other than your normal waking hours. If your waking hours are unknown, then the creditor or collector may only call between 8:00 a.m. and 9:00 p.m.
Visit your home at times other than those mentioned above. A collector cannot visit more than once in any 30 day period for each debt, unless you give permission for additional visits.
Cause you to be charged for long distance calls (or other similar costs).
Call you at work if you requested that they not call. Your oral request is valid for only 10 days, unless you confirm it in writing within 7 days of making the request. Written request are valid until you write to the collector removing the restriction.
Contact you directly, if you have told the creditor or collection agency to only contact your attorney.
Falsely threaten to take legal action.
Use profane or obscene language.
Additionally, creditors and collection agencies may not
Tell anyone (including friends, neighbors, relatives, or employers) about your debt.
Send collection notices in a way that openly indicates or implies that you owe a debt (for example, using postcards or descriptive return addresses.)
Federal law provides some additional protections against debt collection agencies. (This law does not apply to creditors):
Collectors must verify your debt. Collectors must stop calling you if, within 30 days after you are first contacted, you send the agency a letter indicating that you do not owe the debt. They can only renew their collection activities if you are sent proof of the debt.
You may stop a debt collector from contacting you. Write a letter to the collector telling them to stop contacting you. Once the collection agency receives your letter, they may not contact you again except to say there will be no further contact. They also may contact you to inform you if they are going to take some specific action, such as suing you.
Both Victorcs & Lar are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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