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When a debt agency calls for money?*

Can you give them some payment so it doesnt go on your credit report or do you have to give it ALL to them?

Answers:

1) Ask them! easy. They want to get the debt paid and most are generally pretty helpful if you explain you're trying to pay the debt off.

2) When they call, they will demand the full amount. It still might show up that it went to collections, but your credit score will normalize in a month or two.

3) Collection Agencies will demand the whole value of your debt. But, Collection Agencies either are paid for collecting the debt from the original creditor or have purchased the debt at an extreme discount. This allows you, either way, to negotiate the terms of repayment. You can pay the whole balance or negotiate with a manager for a lowered balance or negotiate with the manager a lowered balance with a payment plan or....the list is almost endless. The best negotiated plan is lowered balance, removal of tradeline on credit report. This way you both win, they get their money and your credit is not affected.

4) If a debt collector has your account, it's probably already on your credit report....unless you are dealing with something other than credit card debt like medical debt.... When a debt collector first contacts you, your first step should always be to request validation of the debt per your rights under the Fair Debt Collection Practices Act. Even if the debt is valid, request validation anyway. Send them a letter via Certified Mail + Return Receipt stating: Per the Fair Debt Collection Practices Act, I am requesting written validation of this alleged debt When they call back, tell them: I have sent a certified letter to your office officially requesting written validation of this alleged debt per my rights under the Fair Debt Collection Practices Act. ================================ Tips for dealing with debt collectors ================================ * NEVER, ever give them your checking account numbers for making direct debits. This is an invitation to catastrophe. Once they have this info they can attempt to withdraw money from your account at any time * Never pay debt collectors with your personal checks...Your bank transit + checking account number are clearly visible on the check. With this info they can attempt electronic debits from your checking accounts. * Get all terms of any settlement deal with debt collectors IN WRITING PRIOR to giving them your money. Never accept settlement deals over the phone...they’ll deny that any settlement was ever made once they get your “settlement” money and will continue harassing you for the remaining balance. * Pay only via USPS money order...photocopy for your records * DO NOT sign your signature on any document that you mail to a debt collector. It could end up on a forged contract that can be used against you. Simply type your full name. * Debt collectors love to create a false sense of urgency...and they LOVE to scare people with bogus legal threats. If they make any legal threats against you, immediately state the following: Per the Fair Debt Collection Practices Act, I would like the full name of the attorney who will be taking action against me and his/her license # in the state bar association. I will be calling the state bar association to verify your attorney's information.

5) you have to negotiate a settlement with them. do not send any amount of money without getting an agreement in writing. when you send the money send it certified w/ return receipt and use a cashier's check or a money order. make sure that you get a debt satisfaction letter as well. if you do not do this, than they can make up whatever story that they want, and then pump you for the fully owed amount. the collection is already on your report. the only difference is that it would show "paid in full" or "open". open looks worse than paid, but not by a huge amount. where having it paid off is better is that you don't have to worry about (depending on how much that you owe) one day (usually shortly before the statute of limitations would be up) the agency coming after you in court and getting a judgement against you. this could result in garnishment, levis, or liens. you're better off taking care of this sooner than later.

6) I wouldn't deal with them because they lie. I once paid off a credit card through the debt agency and then the company still kept it on my credit report, it is still there, so I don't deal with them any more.

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