Futurehome

Help: Can you still settle a debt after you start making payments?

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Does anyone know if you can still negotiate a settlement with a collection agency after agreeing to make monthly payments?

Also, the reason I did so is because I received a letter from a lawyer saying they were going to take me to court and garnish my checks. So I got scared and called and agreed to make payments to avoid that from happening. I wish I would have found this site a long time ago!

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Yes, you can negotiate any time if they are willing.

If it's a JDB that owns the debt and if arbitration is an option, I personally would stop paying them now, let them sue me and then use arbitration.

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1 hour ago, Futurehome said:

I'm still new to this sorry, what is a JDB?

A Junk Debt Buyer is not the original creditor. A JDB purchases portfolios of charged-off or delinquent debt.

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2 hours ago, Futurehome said:

I'm still new to this sorry, what is a JDB?

An original creditor would be Chase, Capital One, Synchrony, etc. Debt buyers, such as Midland, Portfolio Recovery and Cavalry buy defaulted debts from original creditors and then sue to collect the balance due.

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20 hours ago, Futurehome said:

Ok, thank you...  Is it to late to send a debt validation letter once you agree to make payments? 

A DV letter only has legal merit within 30 days of the first letter you get from the debt collector.  Any time after that, they are essentially pointless.

 

Who was the OC on this alleged debt?

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3 hours ago, fisthardcheese said:

A DV letter only has legal merit within 30 days of the first letter you get from the debt collector. 

Except in Texas and California (which the OP is not) these 2 states allow their residents to send a DV letter at any time under state financial laws.  Texas specifically requires that the Texas Finance code be invoked in the DV in order to bypass 30 days from initial contact* FDCPA requirement.

*It should also be clarified that it is 30 days from initial contact from the debt collector.  That contact could be a phone call.  

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On 1/31/2018 at 9:00 AM, Futurehome said:

Does anyone know if you can still negotiate a settlement with a collection agency after agreeing to make monthly payments?

Also, the reason I did so is because I received a letter from a lawyer saying they were going to take me to court and garnish my checks. So I got scared and called and agreed to make payments to avoid that from happening. I wish I would have found this site a long time ago!

What's your goal? Is it just to reduce the overall amount you pay overall? Or is it to clear your credit report of the particular default.

The medical collection has already impacted your credit score, so paying less than you owe on the debt or 'settled' will not help your score, it will just help your pocketbook.

If I had the chance, I would contact the OC (original creditor - like Advanced Radiology, etc) and see if they can pull the debt OUT of collections in agreement for you paying it in full.

This strategy will get it off your Credit Report. Some will do this, some won't.

It's all about your goal and what you want to accomplish.

Good Luck! 

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