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negotiating with debt collectors part 2?*

i got all my stuff together and called the debt collectors i owe today. i tried to explain to them i am willing to pay, but i need an agreement in writing first that they will fix it on my credit report, and paperwork on the payment plan, and proof that they own the debt in the first place. the lady i talked to was really rude and kept interrupting me, would hardly let me talk. she said they cant do that, only the original creditor can do that. she said i have to pay now and when its paid in full then they will tell the creditor and credit bureau to take it off my credit report. i did not agree to anything or give out info. i told her i wouldnt pay unless i got papers. she said "COLLECTIONS WILL CONTINUE!!! YOU WILL NEVER BAH BLAH..." what a witch....i just hung up. anyway what do i do now? i cant just send money to somebody with no proof it will do any good... right?

Answers:

1) I am having the same problems. Get it in writing first or they will screw you over big time trust me. Call the orginal creditor and pay them if you dont trust the collection agency. Talk to them about the pay to delete option if they dont comply you shouldnt comply.

2) What you want to do first is pull your own credit through annualcreditreport.com. You will get 1 free report from 1 bureau, but you can write the other 2 for free ones from them. You are allowed 1 free report from each of the 3 bureaus per year. When you get these reports you can see for youself how much damage is done. Something you need to be aware of is if something has gone to collections. It shows on your report. Then when you pay it off, it will show up as paid on your report, but keep in mind this will be the second time it will report. So your score will take a dump. Collections companies will not nor can they have anything removed from your report. The only things that can come off are things you dispute that are reporting inaccurately, or in error. Otherwise, time will be the only thing that will have them remove themselves. If you don't see the debt collector showing up on your credit report. Then don't talk to them. But keep in mind, that not all debt collectors or collection agencies report it right away. Also, you will find on your report everything. So if you want to be proactive then you can contact the collection agencies from the contact number provided on your report. I agree that you just don't blindly send checks in the mail unless you know who your dealing with. If ever something is not being paid, you must contact that creditor immediately. They are the ones that can make arrangements on how in the end it will show up on your credit report. But they can also make false promises, or tell you a half truth. It happens all the time. Good luck, and let me know if you have any other questions.

3) Do you have a copy of your credit report? Usually when debt collectors take over an account, they show up on there. That way you can see that they are a valid company. Have they sent you anything? A bill? Normally they will NOT send you any type of agreement, and nine times out of ten, you are the one that will have to contact the 3 credit bureaus to let them know that you paid it. You should receive something from the debt collector once its paid in full. Really try to negotiate with them too. Cut everything in half that you owe. at least try, most are willing to work with you.

4) This is why it is best to only contact collection agencies via certified mail. Trying to contact them over the phone usually leads to issues, and them making threats, etc. The first thing I would do is check the date of last activity on the accounts which are in collections. If the account is past the statute of limitations (varies by state) then the collection agency cannot legally collect on this account. Simply send them a cease and desist letter (via certified, return receipt requested mail) telling them to no longer contact you via the phone. If the accounts are still within the statute of limitations, I recommend the next step be sending each collector a debt validation letter. Again, send this via certified, return receipt requested mail. The collection agency has 30 days in validate the debt and send you proof that you owe the amount they are requesting. There are some sample letters, as well as an explanation of the debt validation process, in the link below: http://www.creditinfocenter.com/rebuild/debt_validation.shtml If the debt is not validated within 30 days of your receiving the return receipt, the agency must, by law, remove any negative information on your credit report. If the debt is validated then you can start the process of debt settlement. At this point, time can be your friend. If the debt is older (maybe older than 3-4 years) you might want to start low, at around 25% of the balance. Again, all these negotiations should be done via mail. And when you are negotiating, you might want to try to arrange a pay for delete agreement. This is where the collection agency agrees to delete the collection account from your history if you pay an agreed upon amount. Try those steps to see if you can get these collection agencies out of your hair.

5) Do not bother calling. You must send letters. You want a paper trail. Send a certified, return reciept letter requesting validation to include copies of contract or other documentation proving the debt is yours. Give them 30 days. If they fail to respond, you can dispute the item with the credit bureau as they failed to validate. If they do validate, you can then offer settlement. Ask for delete for pay. Get any settlement agreement in writing and save it, along with your payment proof, forever. Do not give collection agencies direct access to your bank account.

6) I agree with Jeremy and BDancer...you need to do this in writing. Not only is it good for a paper trail but alot of times you can catch the collection agencies violating the FDCPA, which you'll have proof of and can use as leverage to get the listing removed and/or file suit.

7) Send them a certified letter asking them for the same info you asked for over the phone. In fact, do all of your communications with the collections agency through certified letters. They are paid to harass people. I heard last week on Dave Ramsey that some collections agents are now buying bankrupted debt (debt that's been discharged by a judge through a bankruptcy filing), and are trying to collect on that. They figure they can use the same intimidation tactics (pay us, or we'll never shut up), and get about 1 in 25 to pay.

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