sundevilatx

Talked to Collection Company Before Reading - How to handle?

Recommended Posts

Willing, 

 

What I mean is that I take a totally different debt settlement approach by only offering my services to people who have the ability to settle all of their delinquent accounts at the same time. It's very rare for people that are behind on their debt to possess this ability. 

 

I came up with this idea when I was in the collection industry after recognizing that a) it's the only reliable way to offer debt settlement so people actually get the help they require; and B) because approximately 80% of all accounts that go into collection are never paid. I identified the main reason for non-payment was due to ability. Not intent. So the premise of my service is to create the ability by negotiating down the amount that is owed to be inline with what a consumer has available to them.

 

[EDITED TO REMOVE LINK]

 

As you can see, by negotiating the amount owed, it created the opportunity for the consumer to pay when they otherwise wouldn't have been able to. 

 

And as you can also see, it's not typical for someone in that situation to have access to the funds that would be necessary to pull something like this off. That's what I mean by niche...

Link to post
Share on other sites

So, you only charge 15% of the "savings" for those people who have the funds to settle all of their debts....at a percentage you will negoitiate for them.  And, of course you are careful to point out to your clients that it is illegal for you to take your fee until you actually accomplish something for them.  And, you do explain the full ramifications of the rights they give up by having a 3rd party represennt them, and the 1099c Tax liabilities on their found income.

 

Sorry...I ain't buying it.   Peddle your act elsewhere please...

Link to post
Share on other sites

At a percentage my clients approve actually. In the 11 years I've been doing this I've never charged up-front fees, so of course.

 

I explain everything: read the How it Works page on my site. 

 

But listen, I'm not trying to make this about me. I just felt the need to elaborate since that's where you took the discussion. 

 

And I'm not sure why you removed that link and issued me a warning? It was simply to demonstrate an example of something you inquired about. 

 

I think I have approached everyone in a very friendly way here, so I'm a bit befuddled as to the tone and approach that you're taking.

 

It's unnecessary. I mean no harm.

 

And in respect to the original poster: there is no reason to expose yourself to the additional stress of trying to force Cap One to recall the account. Paying United Recovery will accomplish the exact same thing without the hassle or the potential delay in your recovery. 

Link to post
Share on other sites

And I'm not sure why you removed that link and issued me a warning? It was simply to demonstrate an example of something you inquired about.

 

I think I have approached everyone in a very friendly way here, so I'm a bit befuddled as to the tone and approach that you're taking.

 

It's unnecessary. I mean no harm.

 

And in respect to the original poster: there is no reason to expose yourself to the additional stress of trying to force Cap One to recall the account. Paying United Recovery will accomplish the exact same thing without the hassle or the potential delay in your recovery. 

I removed your link because it led to misleading examples of the marvels of your enterprise.  And, I had already warned you about trying to solicit clients.

 

You have indeed been civil and friendly.  As I said earlier, the "more flies with honey" approach works well for collection agencies that claim to have the debtor's best interest at heart.

 

Yes, asking Crap 1 to recall the debt may be stressful, but paying a collection agency like United Recovery is NEVER a good idea.  You'll find many posts on the board here where the money either never got to the original creditor, or the CA did not have the authority to negotiate a "settled for less than the full amount" on behalf of the OC...so the  debtor wound up owing the balance.

 

And, in fact, we have one example of a debt fixer, like yourself, who took money from debtors to be used in settling debts...and then disappeared with several million dollars. 

Link to post
Share on other sites

I removed your link because it led to misleading examples of the marvels of your enterprise.  And, I had already warned you about trying to solicit clients.

 

 

Yes, asking Crap 1 to recall the debt may be stressful, but paying a collection agency like United Recovery is NEVER a good idea.  You'll find many posts on the board here where the money either never got to the original creditor, or the CA did not have the authority to negotiate a "settled for less than the full amount" on behalf of the OC...so the  debtor wound up owing the balance.

 

And, in fact, we have one example of a debt fixer, like yourself, who took money from debtors to be used in settling debts...and then disappeared with several million dollars. 

 

I am a perfect example of this.  I settled with a CA for 3 chase accounts all at once.  Paid them monthly installments of 500.00 a month for 6 months.  Then what happens?  They listed 2 as paid, and the 3rd account was sold off to a jdb by chase as defaulted/unpaid.  I fought it with the help of this forum, and won, but it was alot of my time, and I still had to pay my court costs, as my rules you have to  have a win by the court.  The plaintiff dismissed with prejudice right before trial.  I could have gave a bunch of case law, and filed a motion for my fees, but I was so done.  THAT is why you don't pay anyone other than the Original Creditor directly, I've learned you take your chances with their book keeping.

Link to post
Share on other sites

Willing, what do you mean when you say misleading? Come on now. Again, that's unnecessary. 

 

I'm a pretty rational individual so I can understand the removal of the link, but to issue this "warning" when I'm obviously answering your question is a bit abusive, don't you think?

 

Again, to be clear, I'm not here to solicit. I understand that may not be typical, but I'm really not. 

 

I just read this guys situation and felt that I could bring value to the discussion. And furthermore, his situation doesn't even make sense for my service.

 

I'm not a collector now (I was formerly), so I'm not sure how my demeanor relates to that correlation in respect to this discussion. 

 

I understand not every collection agency is professional or ethical. I get that. Especially Payday collectors, it's fraught with abuse. 

 

However, all one has to do in order to protect themselves in a situation like the original poster's is call the original creditor and confirm the involvement of the CA, request the CA to fax or mail a letter pertaining to the arrangement, and then pay it once they have a satisfactory letter in hand.

 

If people do that then they're fully protected from a situation like you described. 

 

I could tell you many stories of "debt fixers" scamming consumers too. And you're right, I'm in a horrible industry. Horrible.

 

But to lump me in and prejudge me based on the actions of others and to associate me with companies that committed fraud and harmed consumers is highly irresponsible.  

 

Just take a step back for a moment and realize that I was just offering my opinion to the original poster. That's it. 

Link to post
Share on other sites

That's a terrible situation Shellieh. Sorry to hear that you had to go through that. 

 

A couple questions...

 

Did you have a settlement letter for all 3 accounts? 

 

Did you have proof of payment? 

 

Did you make any of the payments late? 

Link to post
Share on other sites

That's a terrible situation Shellieh. Sorry to hear that you had to go through that. 

 

A couple questions...

 

Did you have a settlement letter for all 3 accounts?   Yes, they sent me a settlement paper for all 3 accounts.  I settled a year before I was sued, what I did with it is anyone's guess. (yeah my fault, I hate to keep things around, I am a hoarder at heart, so I get rid of it if I don't need it.  didn't think I would need it)

 

Did you have proof of payment?  Yes I had proof that I paid MRS BPO LLC 500.00 per month.  But the payments did not prove what accounts they went to.  I used my paypal account, and they were allowed to debit the money directly, which I made sure the money was in there each month for them to take. (rather than give them access to my checking account)

 

Did you make any of the payments late? No, all payments were on time as agreed.

 

I don't know if it was an oversight on their part, or if chase just didn't check their accounts.  At any rate, since I did not have the stipulation letter, I had to fight it out.  You can be sure I have a box now for anything financial, even if it isn't organized lol.  I contacted MRS BBO LLC the collection agency for Chase, and they were of NO HELP.  Kept telling me they would have a Manager return my call, and they didn't have access to that info, the Manager would have to send it to me.  Of coarse even after half a dozen phone calls the "manager" never called me.

The reasons that led to the default was never my inability to pay, I was forced into BK protection over something else, by the time it was straightened out (never went through with the BK)  All my cc were into default.  I settled with 5 of them, I have 3 more out there where they told me it was to late they sold the accounts.  So I am waiting, I am sure I will be served in the future.  No one is reporting to the CRA's on them, which I find strange, so the SOL is ticking away, but I have 3 more years to wait, I am sure I will not be so lucky. :)My credit is bad after all that has happened, and I did try to make good on them, but now that a junk buyer has them, I won't pay them 100%.  They got it for pennies, I may go for a settlement, but I have no doubt they will not like my offers, lol.  Hey, I would let them make a buck or 2, but not what I know they will want for it!  We will see how it goes.

Link to post
Share on other sites

Our goal here is to help each member resolve their problems. Most of the time that means as a Pro se fighting for themselfs. We do not in MOST cases advocate paying these leeches, but to sue them and win. 

 

While I do NOT agree with Jared's business I have to disagree with TomTex's approach too.  Despite the fact a handful of regulars on a forum have had success filing pro-se most consumers are NOT sophisticated enough to handle this on their own and get into far more trouble attempting to duplicate what they read others alleged to have accomplished on the internet. 

 

Unlike attorneys, anonymous posters can declare how successful they are without having to prove anything.  If a client asks a potential lawyer about their record of success and types of cases they have to disclose it or risk their license to practice.  Anonymous posters on these forums often inflate their accomplishments and the sheet that follow them blindly have no recourse for it.

 

At the very least if a consumer cannot afford a lawyer legal aid will often review a motion for little or no cost even if they cannot represent them in court and every law school offers a low cost clinic that will aid in drafting motions so that they stick with the courts yet I rarely if ever see that suggested.  

 

The other problem is the advocacy of never paying.  There are some collection agencies that are NOT leeches and are reporting and collecting on a legitimate debt.  The advice to just sue because no one should be paid is reprehensible too.  I had 3 CAs on my report that I knew the debts were mine.  I did a PFD at a lower amount and all 3 settlements were accepted.  I kept my word and they kept theirs according to the signed agreement.  I have dug in my heals and sued PRA due to their repeated violations using a consumer lawyer.  

 

Part of repairing credit and managing debt is acknowledging what you actually do owe.  Yes, there was robo-signing and there are JDB who break the law.  That does not equate that ALL debt is not legitimate and every agency collecting on a debt is in violation as is claimed on forums like these.  That doesn't mean that someone should not defend themselves if sued and if the plaintiff can't prove it they should lose the case.  

 

Those who advocate paying what someone owes are nailed to the cross on some forums when the reality is there was a great deal of satisfaction when I settled what I knew was legitimately my debt.  It is sad that some people advocate not paying debts they legitimately owe.  

Link to post
Share on other sites

@Clydesmom  WE DO NOT ADVOCATE DEBTORS NOT PAYING DEBTS THEY LEGITMATELY OWE.

 

The intent of this board is to help the "least sophisticated consumer" understand what their rights are when they are contacted by someone claiming to be collecting for a debt.  That includes determining if it is indeed legitimate.  We are also here to help people when, due to circumstances beyond their control, they are unable to immediately pay legitimate debts, and to understand the ramifications of what may happen.  Where possible, we offer opinions on possible alternatives.

 

Yes, we do get posters who claim to have "settled" debts with little or no detrement to their credit history (YOU for example) and we advise our members that their outcome may be different.

 

And, I at least take a very dim view of collection agencies in general...their busiiness model is based on half truths and intimidation.  And I personally do not feel that a debt claimed by a junk debt buyer is legitimate.

  • Like 1
Link to post
Share on other sites

Those who advocate paying what someone owes are nailed to the cross on some forums when the reality is there was a great deal of satisfaction when I settled what I knew was legitimately my debt.  It is sad that some people advocate not paying debts they legitimately owe.  

 

Each to his own way of thinking!!! I still hold that a JDB does NOT deserve to be paid as we do not owe the scum that buys in bulk for pennies on the dollar then tries to rape those that do not know their rights!

Link to post
Share on other sites

I agree - it takes very little to prove that a debt is legitimate, and JDBs usually don't even have this minimum amount of paperwork.  To prove a debt is legit, all you need is letter of sale or assignment of this specific debt to the junk debt buyer, and some accounting of the original debt.  It's just paper.  

Link to post
Share on other sites

Thanks for the reply Shellieh. I understand your situation clearly. It was more than likely a clerical issue more than anything. 

 

When you settle your debts the collection agency is responsible for assigning a code to the account after it has been settled. They don't always perform this function which can lead to a situation like yours. 

 

As you alluded to, if you have proof of your settlement (settlement letter along with proof of payment) then it's a situation that is easily resolved. 

 

Generally speaking, all you should have had to do was call MRS and request a zero balance letter, as you tried. That was bad business on their part for not being responsive.

 

I understand your perspective of what the JDB paid for your debts, but it's a bit misguided. I'll explain...

 

Approximately 80% of all delinquent debt is never collected. So to think that they should settle for close to their purchase price would only be an accurate thought if they collected every account.

 

Who are your remaining creditors and who is servicing them? I may be able to give you some target percentages on them based on what I accomplished with them in the past. 

Link to post
Share on other sites

@ clydemom - well said!!!! 

 

Especially on the sophistication aspect. This is a dangerous game and generally an unnecessary one. Most agencies conduct themselves professionally, especially with the advent of the CFPB. 

 

On a side note, please refrain from disliking my business until you have a better understanding of what I do. :) 

 

I own the only debt settlement company in the entire country that just accepts clients that can settle their debts right away (been doing it just this way since 2002). I don't offer a BS long-term program. And I recommend to everyone (right on my services page on my website) to DIY if they can't do it simultaneously. I actually help people. And I do it for a fee that is generally less than half of what is typically charged. 

Link to post
Share on other sites

@ Willing 

 

I appreciate that you explain these rights to people, but what I would personally like to see also explained are the potential reactions that are created. 

 

I have written two articles that shed light into these reactions. One has to do with a debt validation letter and the other is concerning the cease and desist. 

 

Please let me know if I can post the links to them? They will bring a lot of value to this discussion. (you can delete them later if you want) 

 

In regard to your dim view of collection agencies, some agencies act that way, but not the majority. Believe it or not, boards like these have really put these agencies on their toes. 

 

Collectors are learning that a problem solving approach is not only more effective, but it leads to less problems for everyone (including themselves). 

Link to post
Share on other sites

Hi Admin, 

 

By design they don't have the paperwork. It's been that way essentially forever. I actually cover this in detail in the articles I mentioned above. Please let me know if it's okay to post the links to them and I'll share this info with you all. 

Link to post
Share on other sites
Guest
This topic is now closed to further replies.