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Considering Debt Settlement Negotiations


Sarris
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I have two collections, both hospital bills being reported by two different collection agencies. I want these collections removed and wish to do so through negotiate with the collection companies to pay the debts in full if they would agree to remove the debt collection from my credit report permanently.

My questions are how should I go about doing this? And how should I word the document in order to make it legal and binding?

I have heard of other people doing this sort of thing with collection agencies before where the agencies reneged upon receipt of the money.

I want to avoid such problems and be sure that if they agree, its in stone so if I have to take them to court I can win.

Thanks for any insight

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Your best bet is to contact the original creditors and give them the old "gee whiz, golly, I thought the insurance took care of this...I want to make it right...what can you do to help me?" Collection agencies don't care and will lie just for practice. Hospitals on the other hand are usually fairly reasonable...just make sure that the hospital calls it back from the CA.

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Well I called the original debtors and they all referred me to the CA's. The next step will be to send a letter requesting Debt Validation.

I thought I was ok credit report wise until I got it. I find a judgement, two collections, and a ton of negative reporting, 90% of which shouldn't even be part of my CR.

Thanks.

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Just a thought, but you might want to try being a little pushy. If you're dealing with a hospital, ask to talk with a manager...if its a Doctor's office, ask to talk with the doctor directly. Sometimes the "Accounts Receivable" clerk gets a little wound up with their own importance and won't let anybody violate THEIR rules. Someone higher up the food chain might be a little more interested in getting the money than in "procedure".

On the other hand, if they insist you must deal only with the CA or if the debt has been sold to a "junk debt buyer" and its the JDB that's collecting, then by all means use the DV route. You need to be very careful paying money to a CA or JDB...get everything in writing and make sure that the money actually get applied to your OC's account.

Either way, keep accurate records of who you talked with and when. If it ever comes to court, you can at least show the judge that you tried to be reasonable.

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Guest sifxpert

I think Willings advise is very good. However; it is very rare that a OC will recall an account. I've had it done before several times but it is very rare. Calling to speak with a manager is very good advise...any time I have had an account recalled it was after harassing several managers...not just one so don't make one call and accept no for an answer.

If all else fails you have many options. Paying the account in full with the CA is very good leverage in order to have them agree to a full delete..I would offer 70% first though..but then again...I go for the throat every time.

I never deal with collectors who answer the phone. NEVER NEVER NEVER. I always deal with management they are the only one's to make decisions and they will negotiate. They all do.

If that doesn't work, what others have done and what I have done myslef is write a settlement offer to the CA and include a statement with terms of an agreement:

I am submitting payment in full or a settlement for account #xxxxx. By depositing this payemnt of $xxx.xx You hereby agree to accept this payment as payment in full and also agree to completely delete this account from any and all credit bureaus you have reported this account with.

Something along those lines...by writing this you are stating a contract, if they do not comply they are in breach of contract. Staple the check to the letter and make copies and also send CMRRR.

Almost every time I have done this I have had the CA deposit the check and by depositing the check they have agreed to a contract. If the account is not deleted I raise hell by calling every exec/attorney of the company complaining until it is deleted. It takes some time but it can get done.

I suggest you exhaust every option before sending the letter. Its much easier and make sure you get in writing that they will delete the account upon payment or settlement.

my 2 cents..

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