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Negotiating successfully


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Before you do that, DV them. Make sure they can prove what they are claiming. I know you think you really owe this, but look this is law. Law isn't what you owe, it is what you can prove.

If you pay a CA and you did not get a pay for delete, what you will most likely get is a "paid collection". Yes, it is marked as paid, but FICO penalizes you because the collection happened in the first place. You get little or no credit on your score for paying it. Your score does not improve with payment.

The funny thing is, you may not be paying what you owe. There are companies called "Junk Debt Buyers" or JDB's that buy up old loans which are considered uncollectable (called junk paper) usually for less than 10% of what the outstanding amount is. The older the paper, the less they pay. Once sold, the bank you borrowed from then writes the loss off and gets tax concessions on the amount.

The CA that you pay may actually be a JDB. You paying them doesn't help the person you borrowed from. They already lost all the money they are going to lose. All you do by paying is give up to 10,000% profit to a JDB. The least you can do is get a deletion for paying a PORTION of this outstanding paper. Anything else and you are hurting yourself.

JDB's are making HUGE profits at the expense of the people who can least afford it. Don't get suckered.

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