FIB - Scams 101

Re: Debt Negotiation

Posted By: Sandi Bowman
Date: Thursday, June 7, 2007, at 3:08 p.m.(pst)

In Response To: Debt Negotiation (Robert)

Collections was a big part of some jobs I had years ago. Here's a few things to help you out. Aged bills, especially over 6 months without payment, are considered virtually uncollectible by most agencies. I have, however, collected on some that were over 3 years old so don't use this as a rule of thumb to avoid payment.

1. You do NOT have to put up with telephone harrassment from collectors. Just send them a letter telling them not call you. They must only contact you through mail from then on unless you agree otherwise. Some will call anyway claiming they 'didn't know' but it depends upon their attitude whether you should talk to them. They could be (not likely) calling to negotiate a settlement with you so...listen and then act as you see fit. Keep track of who you talked to, and when...date, time, and name.

2. The usual cutoff for individual collections on a really serious (suit) basis is $500.00 minimum. Amounts less than that are usually not worth their trouble...unless you tee them off somehow...then they'll sue for a LOT less. Always try to co-operate and take the 'I won't promise what I cannot do' stance.

3. Beware of contracts with Consumer Credit Counseling. You can discover that you cannot trade down to a less expensive vehicle, for example, even tho' it would be in your best interests to do so.

4. If push comes to shove, and you live in a state that allows garnishment, move to a state that doesn't have that. They're often fairer on interest rates etc also. Some states are more reasonable and consumer-friendly than others.

If you're really backed into a corner, threaten bankruptcy but make sure you're as suit and resource proof as possible first...again check your state laws on what's untouchable.

FYI: If they start the old shuffle routine, simply inform them in writing, that you have no intentions of tracking bills all over the countryside and any more than one transfer per year will be promptly ignored...then send the payments to the one you've been dealing with. If they cash the check, you have paid that bill payment regardless of what they say. They'll soon get the message. If they call and say they HAVE to transfer it, negotiate with them if possible. There are cases where it is necessary because they're not a true agency...just a department of the originating debt source, such as a hospital for example.

Don't be afraid to call and contact them if you can't keep your promise due to some unforseen event. Keep in touch and don't hide out...it's counter-productive for you.

Be SURE to keep a written record of who called whom, when, subject discussed, any agreements made verbally or otherwise. If you have to prove harrassment, these can be invaluable. It's also a handy reminder of what you agreed to with whom. Just have a binder with a page for each or even just a spiral notebook and make notes by date if you don't have a lot of different collections going on at one time. Just some way to refer to if needed.

I am not a lawyer and this is not legal advice, just things I remember from a long time ago. Things do change so check and update the info as needed.

Hope this helps.

Sandi Bowman

>> You're confusing debt negotiators with credit counselors. Sure you can
>> reduce the interest in some cases, but negotiating the balance requires a
>> lot of expertise, especially since many times the debt must be sent to
>> debt collector first before negotiation is even possible. As you pointed
>> out yourself, dealing with collectors can be very difficult and stressful.

>> There are a lot of good companies out there. You just have to do your
>> research with the BBB before you enroll anywhere.

Messages In This Thread

• Debt Relief help.......
  Frank -- Sunday, March 4, 2007, at 8:28 p.m.(pst)
  • Talk with your bank
    Mel. White -- Sunday, March 4, 2007, at 9:56 p.m.(pst)
  • Re: Debt Relief help.......
    Alex F. -- Monday, March 5, 2007, at 2:25 p.m.(pst)
    • Debt Negotiation
      Robert -- Thursday, June 7, 2007, at 1:34 p.m.(pst)
      • Re: Debt Negotiation
        Sandi Bowman -- Thursday, June 7, 2007, at 3:08 p.m.(pst)

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