How To Negotiate With Debt Collectors
It can be very frustrating when you are being contacted by debt collectors. This can cause you to change your number, move or more.
This frustration is ten fold if the debt is not your debt. It is common for a lender to make a mistake and your account to go into collections. Trying to explain that the debt is not yours to a collector is next to impossible. This is because their motive is only to collect money not to fix mistakes.
If you find yourself in this position you should request validation of the debt. This is done by writing a letter to the debt collector and requesting validation. I suggest you do this by certified mail so you have documentation that they received your letter.
We strongly discourage you requesting validation over the phone; unfortunately these requests are often ignored. In addition you only have 30 days to request validation of the debt, once notified.
In addition it is becoming common for debt collectors to sell your account if you request validation. This is why I suggest you request validation through certified mail so you can prove that your request was ignored.
Instead I suggest you hire a credit service to dispute the negative credit items that the debt collectors have posted on your credit report. This way you will prevent your score from being damaged due to a lender mistake.
If the debt is valid then you should settle it. You should start your settlement offer at approximately 50% of the balance.
Start at 50% of the balance because the collector bought your account for a fraction of the balance. Also this will notify the collector that you are willing to pay you just need to agree on a price.
You will need to have the collector agree in writing that they will remove the negative item from your report in exchange for your payment. If this is not done then the item will change to a paid collection and it will still be seen as a negative mark on your credit by future lenders.
In sum I suggest a service to repair your credit report of debt collectors.
This frustration is ten fold if the debt is not your debt. It is common for a lender to make a mistake and your account to go into collections. Trying to explain that the debt is not yours to a collector is next to impossible. This is because their motive is only to collect money not to fix mistakes.
If you find yourself in this position you should request validation of the debt. This is done by writing a letter to the debt collector and requesting validation. I suggest you do this by certified mail so you have documentation that they received your letter.
We strongly discourage you requesting validation over the phone; unfortunately these requests are often ignored. In addition you only have 30 days to request validation of the debt, once notified.
In addition it is becoming common for debt collectors to sell your account if you request validation. This is why I suggest you request validation through certified mail so you can prove that your request was ignored.
Instead I suggest you hire a credit service to dispute the negative credit items that the debt collectors have posted on your credit report. This way you will prevent your score from being damaged due to a lender mistake.
If the debt is valid then you should settle it. You should start your settlement offer at approximately 50% of the balance.
Start at 50% of the balance because the collector bought your account for a fraction of the balance. Also this will notify the collector that you are willing to pay you just need to agree on a price.
You will need to have the collector agree in writing that they will remove the negative item from your report in exchange for your payment. If this is not done then the item will change to a paid collection and it will still be seen as a negative mark on your credit by future lenders.
In sum I suggest a service to repair your credit report of debt collectors.
About the Author:
For a review of Lexington Law a suggested credit repair service visit us, or to see an article about credit repair letters.
posted by Debt Consolidation Loan at
3:23 AM
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