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I dunno whether or not my debt has been bought. My credit report shows that the account has been "Charged Off". A 2nd debt collection agency (a law firm) is trying to contact me, as the first one gave up. They are threatening to sue me.
What can I do? I want to resolve this. I'd like to settle for less than 8k. My debt is of 8k. Should I do this before they summon me to court, or should I wait? Should I send a letter asking to settle for 50% or something? I don't have much money, and have no assets.
Please advise me on how to approach the debt collector.
negotiation with collection agency
Hi Jaypee,
You can send them a debt settlement letter of your own accord. Remember to send it through certified mail, requesting a return receipt. Thus you will be able to retain a proof of your settlement offer. You should try to settle the debt before they file a judgment in the court. A judgment damages your credit score.
As you don't have much money, you can definitely try debt settlement. Settlement lowers your outstanding debt amount by 40-60%. Thus, it becomes much easier to pay off the debt.
Hope this helps.
Regards,
Aaron
Hello, usually after a debt is sold off then it is sold. If there is a second company trying to contact you or on your report then it more than likely was sold.
If your debt is a newer debt and not an old one protected by the SOl then I would first send a debt validation letter to the new collector registered mail to be sure they own the debt before proceeding with an offer to pay the debt.
If they do legally own the debt then you should send them another letter with your settlement offer. Just remember that if the do offer you a settlement GET IT IN WRITING!. This assures you that you will have satisfied the collection company and after paying the agreed amount they can no longer sue you. Also keep receipts of all the payments you made so you have proof of payment. I have seen paid debts come back for collections years later. It is best to keep all documentation.
I would start with DV to Collection Agency. You want to make sure they own the debt before you negotiate a settlement.
debt validation letter
Do I need to send a debt validation lettre even though I am sure about this debt? Is there a sample validation letter here?
Thanks,
Jaypee
debt validation letter
Hi Jaypee,
Even though you are sure about this debt, you can send the collection agency a "debt validation letter". You will get a sample debt validation letter at http://www.creditmagic.org/repair/sampleletter-debtvalidation.html .
Thanks,
Aaron
jaypee
what kind of debt?
what state do you live in?
Date that the bill was left unpaid?