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Best Way to Pay a Collector?


RockyJones
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A few days ago, I had a lengthy phone conversation Midland Credit management, concerning a credit card debt. I offered to settle with them for around 40% of the original amount, and they finally accepted. But here's the clincher. I told them to fax a confirmation letter to me, and in return, I would send them a money order or cashier's check for the amount agreed upon. They then told me that they would only accept this settlement amount if I picked up a prepaid debit card somewhere, loaded the funds onto the card, and paid the settlement amount with the card.

Has anyone heard of this? Are there any pitfalls to expect when paying via this method? I don't want to make my next move until finding out first.

Thanks.

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Don't do it. Simply put, a debt collector is lying if their lips are moving. If you send in the money without anything in writing, either another collector from Midland will call you and when you mention the deal, the currently collector will be gone (probably either quit or was fired as the average collector lasts 90 days) OR Midland will sell the debt to another JDB who had not clue about the deal.

If you have the money for settlement, then keep offering it on your conditions when the call. The conditions are that they send you the settlement in writing and once you receive it, you will send a money order next day delivery. Make sure to keep the letter, the money order receipt, and the delivery confirmation in your records FOR THE REST OF YOUR LIFE. If they refuse, then don't talk any more to them and wait for the next call to offer again. Keep offering and you will get a collector with 2 brain cells sooner or later (it happens because of all the hiring and firing that goes on).

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I'm pretty much doing everything you mentioned. I asked for a confirmation in writing, and told them that I would pay immediately upon my receiving the confirmation. They just threw in the debit card thing at the last minute, telling me they won't honor the agreement if I didn't pay in this manner. I really have no problem with picking up a prepaid debit card and doing so. BUT I want to make sure they can't somehow try to charge the card for more money than was agreed upon. I don't trust these guys.

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They just don't want to wait for the mails. Remember - it is a commission driven system and a prepaid debit card gets them paid immediately. As long as you can get a copy of the statement from the prepaid debit card showing the payment you have your proof.Now... get the agreement in writing from them first. Getting paid is the primary cause of amnesia in Bill Collectors.

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I'm pretty much doing everything you mentioned. I asked for a confirmation in writing, and told them that I would pay immediately upon my receiving the confirmation. They just threw in the debit card thing at the last minute, telling me they won't honor the agreement if I didn't pay in this manner. I really have no problem with picking up a prepaid debit card and doing so. BUT I want to make sure they can't somehow try to charge the card for more money than was agreed upon. I don't trust these guys.

An equal, if not greater, risk is that they will completely "forget" that you paid, knowing that pre-paid debit cards don't come with specific proof receipts, and it is nearly impossible for ordinary people to get the transaction codes with these things.

NEVER use a PPDC for "legal" transactions, or for any transaction you can't afford for some unknown business to stiff you for.

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Do you owe this bill? Is it yours? Did you make them prove they have the right to collect this debt? Are they licensed to collect debt in your state?

I wouldn't give jack to a Collection agency until they prove to me that I owe THEM. You may owe the bill to some other company, but do you legally owe them what they claim?

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