Debt collection negotiating

while i am not a collector i work at a collection agency so i will try to answer best i can

1. interest on the account also any additional fees the bank charges from the defaulted loan to carry over in addition to the principle amount.
2.usually it can be settled for a bit lower but it really depends on the bank, agency,type of loan and amount. most settlement offers are sent out i would say 5-10% over the settlement safe blanket % given to the agency by the bank (for example BofA tells us no settlements under 60% so we send out 70% letters)
sometimes if the bank does approve special cases the agency can settle for less than the blanket %. you will have to speak to the agency who will then need to contact the bank to negiotiate the terms.
3. not sure about this, like i said i am not a collector at my agency (i work in IT) so my knowledge of FDCPA is hazy at the very best. you should be able to look up your rights online, state laws vary as well.
4. it happens but rare sometimes an account can be SIF'ed at agency but not properly reported back to the client as a SIF so the remaining balance can actually be re-assigned to a different agency to be collected upon. As for SIF'ing an account is better than not paying at all, it will affect your credit.
5.paid debt is all monies owed paid in full, so if you have an 8k debt you pay the entire 8k. settled is usually a percentage of the debt (usually made in 1-2 lump sum payments if a large balance) most paid accounts are made through monthly payments (if large balance) till its paid off. of course the longer the account is open the more interest is accrued to the account. Also like the last question a PIF'ed account will help your credit out a lot more than a SIF'ed account once the defaulted loan appears on your credit.


hopefully i was able to help clear up some issues for you

 

1. Debt usually balloons like this due to collection fees, interest, and other charges. I think it is a crock most of the time but I don't think there is much you can do about.

2. There are others on the board that have posted about this but I think that debt collectors are usually eager to get something instead of nothing.

3. The statute of limitations is something I know very little about. I think it depends on where you live on how long it is. I believe if you do contact them and recognize the debt that it does renew the statute of limitations which means they could possibly sue for the amount and get garnishments, levies, and liens. Again, I am unsure if this is correct but I think so hopefully others can back me up or give better information.

4. If you do pay a settlement then you need to get something in writing saying so and saying the debt has been satisfied. After that, I don't think the other portion can come back and get you.

5. A settled debt is not as good as a paid debt on your credit report but it is better than a delinquent, outstanding debt. It will also show up as settled on your credit report and not paid. Not sure how long it will show up like that either.

Sorry if I wasn't much help but I hope you find it useful.

 

1. Read this site over and over again.
http://www.fair-debt-collection.com/index.html
Read up on debt verification. Get a printed statement of receipts to make sure that you'll pay the debt to the rightful owner of your debt.
2. As far as I know, it doesn't have to be paid in that time frame as long as you both agree to it.
3. Don't know.
4..5. No, a settled debt is supposed to be a paid debt. The problem is that without debt verification of ownership, you might end up defrauded by paying the wrong company, which is why it's a law in the first place.

Here's a general idea of how collections works. Suppose you don't pay a hospital bill for whatever reason and after a year, they give up and decide to sell that debt for a percentage to a collections agency. You now don't pay the hospital, but rather that collections agency. If after a while, that collections agency can transfer the debt to another.

That agency has two ways to enforce collection: a hit on your credit score or through litigation. In the latter, they can't threaten you with litigation or use strong arm tactics because it's against Federal law (if they sue you, they sue you). Record ALL of your contacts with them, phone, email and snail mail. With mail, spend the extra money to certify it as proof that you sent them correspondence.

Don't take my word for it...it's YOUR credit rating. Read up on that site and the actual federal laws on collections practices.

 

Why is the family member not paying?

 

If the debt is over 7 years old, under Federal law, you do not have to pay for it, as it over the stature of limitations. Is the credit agency that's going after you in Sacramento?

 

does anyone know if you check your credit say for the first time in 3 years does it start the SOL then or should that time started from the point that the account was past due.

personally i have a few things from about 5 years ago. and from my current position i would just rather wait for 2 years for it to go off. and go from there

 

"statute"

 

Are you sure that is true? I think that is dealing with bankruptcy.

 

I'd in turn hound the family member who got you into the mess.


For younger people on the board:

Never cosign anything. Never take on debt for anyone.