Debt Collection Tips - What You Should Do
If it is a legitimate debt you can settle the account for much less than the total due and repair your credit report. What steps to take once contacted about a collection.
Phone calls and other communications from debt collectors can be incredibly frustrating. They will cause some to change numbers and even move just to avoid it.
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 in this position then you should request validation of the debt. I strongly suggest you do this through certified mail so you have documentation that they did get your debt validation letter.
Do not ever request you validation over the phone. This is a very ineffective method because it is often ignored and you are only given 30 days to request validation of a debt once you are notified.
In addition it is becoming common for debt collectors to sell your account if you request validation. This is why I suggest you request validation through certified mail so you can prove that your request was ignored.
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.
If the debt is valid then we suggest you settle it. This is done through a settlement letter to the collector; we suggest you offer 50% of the 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 you hire a credit repair service to repair your credit from debt collectors.
