Home Debt Repair & Relief Collection Agencies Things to know when dealing with a collection agency:
Things to know when dealing with a collection agency: PDF Print E-mail
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Friday, 18 July 2008 11:26
1. NEVER talk to a collection agency on the phone. Always use mail.

2. Penalties and extra interest are fictitious amounts of money added on by the collection agency for extra profit. Most companies would be thrilled to get you to pay the original debt even without the extra penalties they add on and will usually be more than agreeable in waiving these fees.

3. Time is on your side. As time passes, the creditors will likely stop calling and the debt will be filed away for future attention. The longer the debt remains uncollected, the better your chances will be of getting a good settlement. If this is the second or third collector to try and collect, they will accept a very small amount.

4. Never seem eager to settle. Take plenty of time to reach an agreement. Don't accept the first, or even second, settlement offer. Make sure that they are the ones calling you to push the deal forward. You cannot expect to reach an affordable settlement if the creditor thinks he has the upper hand.

5. Remind the creditor that the statute of limitations is approaching on the debt and they only have a limited time to deal with you. Know when the statue is up on each debt and be prepared to give the creditor the time line.

6. Use the threat of bankruptcy. It will be in your best interest if the creditor believes that you have very little money and you are teetering on the edge of bankruptcy. You should approach each creditor as though this is their last chance to compromise, and get something out of your debt, before you declare bankruptcy and they get nothing.

7. Offer to pay more money if the collection agency agrees to remove the listing completely. The collection agency has nothing to gain by reporting the account on your credit report, other than getting you to pay. They are not legally obligated to report this on your credit report as some claim.
Last Updated ( Friday, 18 July 2008 11:29 )
 

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