Find out more on Debt Consolidation Credit Counseling In Phoenix Now!
Saturday, December 20, 2008
When you are being contacted by debt collectors it can be very aggravating. It can cause you to change your number, change your job, and even move.
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 a victim of a lender mistake then you should immediately request validation of the debt. Do this through certified mail so you have documentation that you letter was in fact received.
We strongly discourage you requesting validation over the phone; unfortunately these requests are often ignored. In addition you only have 30 days to request validation of the debt, once notified.
It is not uncommon for debt collectors to sell your debt to another agency instead of validating it with the lender. This is why we suggest you send your letter through certified mail because that way you may be able to file a civil suit against the 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.
Do this because the debt collector has purchased your account for a fraction of the balance. In addition you are showing the debt collector that you are willing to pay if you can agree on a price so they will negotiate on the balance.
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 a service to repair your credit report of 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 a victim of a lender mistake then you should immediately request validation of the debt. Do this through certified mail so you have documentation that you letter was in fact received.
We strongly discourage you requesting validation over the phone; unfortunately these requests are often ignored. In addition you only have 30 days to request validation of the debt, once notified.
It is not uncommon for debt collectors to sell your debt to another agency instead of validating it with the lender. This is why we suggest you send your letter through certified mail because that way you may be able to file a civil suit against the 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.
Do this because the debt collector has purchased your account for a fraction of the balance. In addition you are showing the debt collector that you are willing to pay if you can agree on a price so they will negotiate on the balance.
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 a service to repair your credit report of debt collectors.
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For information about credit repair services or to read an article about how to remove credit card judgments visit us.
posted by Credit Counseling at
1:36 PM
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