So I made a decision....

[suzebqueen]

I am about 30k in debt...5 cards all in collections...last payment on most are from late summer early fall 2007.....it was all due to a failed retail business....

But I just found out I could sell my online business for about half of what I owe to the collections agencies....I am finalizing the deal and hope to have the money in about 2 weeks....so I am excited to be able to pay off my debt...

BUT...where do I begin from here....how can I tell if a collection agency is a JDB or an agency working for original cc...

here are the agencies as I currently know of them....I sent out DV's to all of them and 2 of them did reply with valid proof.....so I will take care of those first..

LHR is my big one at 12k (they already told me via phone about 3 months ago they would take 6k right away....shoudl I try for less..this makes me believe they ARE a JDB, but I did not think the JDB would have an account that quickly...OC is First Equity

Goldman & Warshaw attorneys at law is the 2nd one I will pay

So those 2 I will pay first...but not sure how to best contact them for a PFD....has anyone dealt with either of these companies that can offer insight to how to approach them?

I also have one collections with Professional Recovery Consultants although they have not validated as of yet and it was mailed over 90 days ago...

I cannot pay any more than what I am getting from the sale of the site...so I HAVE to get 50% settle on all of these to make it work.....

I have read post after post about settlement...but I am just confused as to how to tell what kind of collectors I am dealing with....so any insight would be AWESOME!!!

Thanks everyone...and I am so looking forward to breathing again........I was amazed to hear my site even had value so it was a happy day...I hate selling it b/c it is my baby....but I know it is the right thing to do.....

[Debt Guy]

.it was all due to a failed retail business....

Been there. Done that.

..how can I tell if a collection agency is a JDB or an agency working for original cc...

Does it really make a difference? But, if it is important to you, call the original creditor and ask if they sold the debt. If they did, they will tell you who they sold it to.

LHR is my big one at 12k (they already told me via phone about 3 months ago they would take 6k right away....shoudl I try for less..this makes me believe they ARE a JDB, but I did not think the JDB would have an account that quickly...OC is First Equity

Again, call the OC and ask. Alternatively, look at your credit report for the First Equity tradeline. If is says SOLD and zero balance, it is sold. Just be aware that there is a lag time in updating tradelines.

.but not sure how to best contact them for a PFD....

Though a CA or JDB is not required to report, once they do report their actions relative to the tradeline are governed by federal/state laws and contractual agreements.

There is no law that explicitly prohibits a data furnisher from accepting cash to delete a tradeline (what is commonly referred to as a PFD). There is, however, an almost certainty that doing so would violate several federal laws. Let's say, for example, a CA offers to remove a tradeline in exchange for payment. If they accept payment before removing the tradeline they have violated both the CROA and, I think, the FDCPA.

So, unless the data furnisher is willing to delete the tradeline first – they have a problem on their hands. Some consumers have been known to "set up" the data furnisher for a violation.

That is only one of several reasons that the attorneys for the data furnisher strongly discourage PFDs. There is additionally the problem of the slippery slope of allegations and lawsuits for discrimination -- which would almost surely ensue as these organizations would likely have little consistency in the application of a PFD policy.

As a result, most data furnishers adopt a corporate policy to not delete tradelines. It is common that front-line drones will tell consumers that deleting a tradeline is illegal. Usually, they just don't know better -- or their supervisor told them to use that excuse in an effort to avoid arguing over the company policy to not delete.

There is another practical reason for data furnishers to not delete. The contract the DF has with the CRAs contains a clause that prohibits PFDs. DFs who delete are at risk of losing their ability to report their negative items to the CRAs -- which generally would impact adversely their ability to recover bad debt.

Practically speaking, CAs and DBs would very much like to have a more liberal PFD policy. Candidly, it would make it easier to collect and they could probably charge a premium for a PFD.

The parties who are strongly opposed to PFDs are the original creditors. People who extend credit have this odd mindset that they are entitled to know one's credit history in order to properly evaluate risk. Imagine that.

Since OCs are the ones who pay the lion's share of the income received by the CRAs, it is easy to see why CRAs take a very firm posture opposed to PFDs and come down hard on data furnishers who operate fast and loose. The CRA is just trying to protect their revenue stream.

PFDs do happen. It is certainly appropriate to ask. They are not terribly common. Most PFDs come from smaller CAs and smaller OCs -- often medical or other non-credit related debts. It is very unusual to secure a PFD from a major corporation unless they have somehow messed up really badly and you have them backed into a buzzsaw.

I also have one collections with Professional Recovery Consultants although they have not validated as of yet and it was mailed over 90 days ago...

There is no time limit on how long they can take. Assuming your DV was timely, then so long as they are not contacting you, all is hunky-dory.

I cannot pay any more than what I am getting from the sale of the site...so I HAVE to get 50% settle on all of these to make it work.....

Then shoot lower. Don't worry if one is higher than 50%. It is the average that counts.

I have read post after post about settlement...but I am just confused as to how to tell what kind of collectors I am dealing with....so any insight would be AWESOME!!!

In my opinion, and in my experience, hardly nothing is accomplished with a debt collector by mail. They just are not geared to negotiate by mail and 99% will simply refuse.

I know that lots of posters on this forum repeat the mantra "STAY OFF THE PHONE - NEVER TALK TO A DEBT COLLECTOR". I don't understand that mindset unless your goal is to litigate.

Now, in fairness, collectors are trained to talk on the phone -- you are not. But, this is not brain surgery. Al you need is a plan that will allow you to control the conversation.

I've posted several times on some basic rules for negotiation. I am below pasting the text of two different posts. They are essentially the same but one is more bullet points and the other more conversational. I think reading both would be helpful.

Here is the text from my first post:

How to negotiate a settlement:

1. Plan your call and set your goals before calling.

If you want to settle for 50% start negotiating at 25%.

2. Make no solid agreement on your first phone call.

3. Make sure you have the money to pay an agreed settlement immediately

4. Sit at a table with a notepad. Take notes of everything being said. (The collector will I promise you)

5. When you are talking to the collector, describe where the funds to settle is coming from (for example, the money you will be paying this is with is being given to you by your wife's uncle or something like that -- he has offered you $x - with x being your starting point in the negotiations).

6. Remember X is all the money you have to work with on this call. If the negotiation goes higher and you hit your goal tell them you have to have it in writing so you can bring it to your uncle and ask for more.

7. Make no promise to pay without the written settlement agreement. Don't pay or make a promise to pay on the first call.

8. Remember you are dealing with trained negotiators. If the collector becomes excited or you feel is getting abusive simply say, "Obviously we both want to take care of this, but I feel you and I aren't communicating well. May please speak with your supervisor?"

9. It will take more than one call to do this right. You will need to take copious notes and make sure you get the names of who you talk to.

10. If you are concerned that you will not be able to handle the negotiation yourself, there are professional negotiators -- just stay away from the internet settlement companies unless you enjoy putting all your money in a pile and setting it on fire. An ethical settlement professional will work for a percentage of what they save you and will not want any money in advance of results that satisfy you.

Here is the text from my second post:

1. Set your goals for the communication prior to beginning the conversation. What do you what to accomplish? If you want a payment plan, the collector is going to need to know your financial info to be able to justify it to his boss. If you want a settlement, the collector will have to know why one is justified.

When you have your goal for the conversation in mind, you can anticipate what the collector will want to know or ask. This will allow you to steer the conversation and guide it toward what you want. If the collector calls and you aren't ready – tell him that you need a minute and pull your thoughts together.

2. Organize Your Thoughts. You know what your goal is. Now set up a logical progression for the call. Keep the conversation moving toward your goal. Don't introduce distractions and don't follow the side path the collector will layout for you. But above all remember, if you don't know what you are going to say, you probably won't say what you want.

3. Talk to the collector. That doesn't mean allow them to berate, insult or harass you. If you are being mistreated on the phone, tell them how you are feeling and if they don't change their tune – END the call. However, that also means don't threaten, insult or yell at the collector either. If the conversation goes bad – just hang up. An argument will not help you.

That said, if the collector doesn't know your situation, he can't go to bat for you with his manager (collectors have very little authority to make a deal and anything significant you are asking for will require higher approval -- perhaps several levels higher). And if you don't communicate well, he won't. You need to provide the supporting information for the goal you set in step one. If you can only pay $25 a month, you will have to justify that to the collector. If you can't make it sound reasonable, it isn't going fly. But remember, the collector works on commission. If you make the payment plan reasonable and support your goal with facts and figures regarding your economic position, he will likely take the deal and move on to the next account.

4. Relax. Inhale. You have just been through a stressful situation. And, it is the collector's job to make it a more stressful if you aren't paying. After you hang up with the collector don't talk to your family for at least 10 minutes. Just pause and remember, nobody is going to die over this. While it is important, don't let a debt destroy your relationship with your family. You will not get the result you wanted in one call – most times.

Keep track of your calls, who you talked to and about what. You cannot take too many notes while you are opening the lines of communication and negotiating a debt.

A final thought. As I said above, the collector you get on the phone has virtually no authority. Sometimes, he is constrained by factors beyond his control (limits imposed by the original creditor or by the business plan of the CA). If after going through the above steps and the collector says "no", don't automatically assume he is playing with you. Wait two weeks and try again. It that does not work try again during the last 2 or 3 days of a month on the end of a calendar quarter when goals and commissions become intense motivators for the collector and the CA.

If, after working your plan through several cycles without results, then perhaps you re-evaluate or give up. Sometimes it is just a bridge too far for reasons beyond your control.

Good luck to you.

[suzebqueen]

Thank you debtguy! If I missed this in my searches I am sorry-but thank you for taking the time to post...it is clear and to the point-exactly what i was looking for! Now wish me luck!!!