Collections?

Question

I have a CC debt that has been charged off and sent to a collection agency. I am waiting on validation of the debt from them after sending my validation letter. What do I do if they do not validate? How do you go about working out a reasonable payment plan with them? How much will they be willing to settle for (10%, 15%, etc.)

Answer 1

Do you have any idea how long ago the CC debt was

charged off and sent to the collection agency? If collection

has not started (you have not sent payment or agreed to any

payment terms) you can ask the CC company to pull the

collection back and then negotiate a pay off with them

Normally you can do this for around 15%, I believe (don't

know why I believe) that you live in NC, here is the state law

on the CC company's ability to pull the collection notice back



§ 58‑70‑75. Creditor may request return of accounts.



The written request of a creditor or forwarder for the return of any account which is not in the actual process of collection shall be complied with by the permit holder in writing within a reasonable length of time, but in any event not to exceed 60 days. All valuable papers furnished by the creditor or forwarder in connection with the account shall be returned. (1979, c. 835.)



Also look at the link below, they have a kit that will cost

you $20 but the kit contains several letters that you can

send out for different situations and if you purchase the

Debt Kit you can down load the Credit Kit for free.

The Credit Kit will give you ways to improve your credit

and get negative credit off of your record.



The state of NC does not allow for wage garnishments

(attaching your wages) unless the debt is owed to the

government, sorry, you got to know they will get their money

so I don't think you need to worry about that.



The maximum interest rate they can charge you is 8%



The second link will show you some of the laws for NC

regarding bankruptcy and other good info, read thru it

as well as the links at the bottom

Answer 2

It depends on how long time ago you sent the validation request letter. If it has been more than 30 days then more than likely they could not validate the debt and will not contact you again, not even to let you know they could not. If they can validate it then the settlement is usually 20% max. Payment arrangements are also a good idea you can set up a payment plan and send payments every month. I would recommend you pay it. It could end up on your credit and if your State law allows it you can get sued. If you live in a garnishment state then your wages can and will be garnished. I hope this helps. Thanks!

Answer 3

credit collection companies will usually settle for no less than 50-60% of the balance due. payment plans can be set up, but you need to contact the collection agency. it is better to settle the debt with the original creditor than with a collection agency. Now this debt will come up as an adverse debt on your credit report. More than likely, what is going to happen at the current moment, is on your credit report, not only will you owe the original credit grantor the balance due, but the collection agency will also be reporting on your credit report for the owed amount. Hope this helps. Also, in regards to settling for a lesser amount than the original balance due, this also will negatively affect your credit rating, due to the fact that you did not pay the full balance, only a fraction.

Answer 4

I recently helped my husband pay off his debts by calling the collection agencies myself and negotiating a settlement with them. the most that they were able to knock off was a little over 50% and the least was 30%. he had about 7 accounts in collections and they all worked with me. some were more willing to knock off more and others would just not accept anything less than a certain amount. most of them i paid in full, in one payment thru electronic check debit but i was also able to receive the 50% discount on one acct and still make three payments in three months so you should first ask what is the lowest they may accept in a few payments and then ask whats the lowest they would accept if paid in full in one shot and u see which is best to do. also before you pay anything ask them to email you or fax you a letter indicating that a settlement was made so that you would have proof and also you wont have a problem obtaining proof later that the account was settled in full.

Answer 5

When debt is charged off that means the orginal creditor has sold it to the collection agency. Paying the collection agency will do nothing but mark the account as paid on your credit. Still having the Charge off blemise. Try to settle with the original creditor by doing a "pay for Deletion" on your credit.



If you are trying to just get the collection agency off you back you can prob settle for 50% of the balence. they buy these debts for pennies on the dollar.



Good Luck

Answer 6

My friend, why send a validation notice when you know that the debt is valid and you want to be on a payment plan?



What this does is make the bill collector automatically think..well he is asking for validation when it is a valid debt and he knows it. So he must be doing this to either stall or play me for a fool...in most cases, what that does is make the collector pull the trigger. So if the account is a significant amount, he files a lawsuit right away and lets the court validate it for you.



Now, each bill collector has their own ways of working. You may just get the validation to you and a chance to call in with your offer or you may get sued and them getting their judgment is more than validation it is permission for them to proceed with wage garnishment, bank levy, filing liens and attaching assets.



All the validation is going to be is either invoices, statements, credit apps, contracts or whatever docs they have on you.



What you need to do is just call the collector and explain to them that you have had some financial hardship, etc and that you now have whatever percent your offering available but you cant afford to continue with payments that you just want it closed out. Tell him that other creditors gave you settlement offers and that is how you are able to start paying otherwise you can not pay the entire amount.



Make the deal but before you pay it...be sure to get something in writing from the collector. If you dont than dont pay him till you do.



Also, if it is important for you to get it off your credit report the collector may agree to take it off if you pay the remainder. If you make that deal with him than be sure that you get that in writing before payment as well.



There is not a specific amount anyone can tell you a collection agency will take. Depends on what the original creditor will take. Some will not accept a settlement at all and others will take as low as 30%



but before you do pay, check to see what the statute of limitation are in your state as far as how long they have to sue you and how long they have to keep it on your credit report.



If you need help or have questions, email me.



Good Luck

Answer 7

I've been in collections once with a credit card, once with a doctor's bill and once with a cell phone bill and although they have always wanted the full amount due, they have always worked out a payment plan that I could adhere to. Maybe you will get lucky and they will settle with you but that has not happened with me.

Good Luck.

Answer 8

You know whether or not you had the credit card. There is absolutely no reason you shouldn't just do the honest thing and pay your stupid bill instead of dragging it out or trying to get a settlement.

Be a decent person, be honest, and responsible. Pay your bill.