How To Deal 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.
However the frustration is multiplied when the debt they are calling you about is not yours or is due to a mistake by a creditor. This is because the debt collector is unwilling to acknowledge a lender mistake. They have already spent money purchasing your debt.
If you are in this position then you should request validation of the debt. I strongly suggest you do this through certified mail so you have documentation that they did get your debt validation letter.
Do not ever request you validation over the phone. This is a very ineffective method because it is often ignored and you are only given 30 days to request validation of a debt once you are notified.
Furthermore it is becoming more and more common for debt collectors to just sell your account to another collection agency if you request validation. This will result in you getting calls from another debt collector.
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.
However if the debt is valid then you should settle it. You should offer a settlement of 50% of the account 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 you hire a credit repair service to repair your credit from debt collectors.
However the frustration is multiplied when the debt they are calling you about is not yours or is due to a mistake by a creditor. This is because the debt collector is unwilling to acknowledge a lender mistake. They have already spent money purchasing your debt.
If you are in this position then you should request validation of the debt. I strongly suggest you do this through certified mail so you have documentation that they did get your debt validation letter.
Do not ever request you validation over the phone. This is a very ineffective method because it is often ignored and you are only given 30 days to request validation of a debt once you are notified.
Furthermore it is becoming more and more common for debt collectors to just sell your account to another collection agency if you request validation. This will result in you getting calls from another debt collector.
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.
However if the debt is valid then you should settle it. You should offer a settlement of 50% of the account 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 you hire a credit repair service to repair your credit from debt collectors.
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posted by Credit Counseling at
12:48 AM
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