Even though it’s stressful to deal with debt collectors, ironically, it’s when your account is past due that you are often in the best position of all to negotiate with bill collectors and collection agencies. You have something that bill collector wants – cash.
They also have something you want – the power to update your credit report, and to go away. So your strategy, in a nutshell, should be to dangle the cash carrot before their eyes – whatever amount of cash you have. Read on for more tips about your options for dealing with debt collectors.
Dealing with a collection agency can be stressful. You need to flex some negotiating skills in order to work with debt collectors and if you’re on a monthly payment plan, ensure that every single payment gets to them on time. Remember that a single missed payment could change the financing agreement and you could end up …
How to Re-negotiate the Amount You Are Paying to a Collection Agency Read More »
You probably already know that it’s in your best interest not to ignore phone calls and correspondence from debt collectors, but what do you do when a bill collector continues to ignore you? If you’ve been trying to negotiate a debt or want to be considered for a new payment plan, you’ll need to make sure …
What to Do When Bill Collectors Won’t Negotiate With You Read More »
Creditors can sell your debt. When your debt is sold to collectors, some might use the threat of court action to try to intimidate you in order to get you to pay up.
Technically, it is illegal for collectors or creditors to threaten court action if they do not intend to carry through with it. Taking you to court is time consuming and expensive for them, and there is no guarantee it will result in the outcome the creditor wants. So typically, a court action is a tactic to get you to pay up, or to obtain a default judgment against you if you don’t respond to a summons and complaint.
Don’t pay them anything. Send a cease and desist letter in which you tell them to stop contacting you. Harassing people about debts (old debts, like yours, or current ones) is illegal under the Fair Debt Collection Practices Act.
If harassing calls from debt collectors are keeping you from answering the phone — or stressing you out — you’re not alone.
Amid the tough economy, debt collection activity has intensified, with some debt collectors engaging in unfair, abusive or illegal practices. The Federal Trade Commission says it gets more complaints about debt collectors than any other industry. In 2009, the agency received 88,190 consumer complaints about debt collectors, up 12% from the year before.
If you can’t pay a debt, creditors are willing to settle out of court with you for a lump sum payment of less than the amount you owe, or a monthly payment plan, but they also will not hesitate to sue you for the full amount of the money you owe them. So what should …
Why You Should Answer a Summons on Debt Collection Read More »
Beware of calls from “zombie” debt collectors. These are bill collectors that try to get people to pay money on debts that were allegedly incurred 10, 15 or even 20 years ago. I received such a call today from a Christian Gable of National Action Financial Services (Phone: 866-529-1885). They claimed I owed money on …
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