Collection company's practices under fire Kansas.com
A company you never heard of may be getting ready to raid your bank account for money you may or may not owe it.
Midland Funding has filed more than 3,300 debt collection lawsuits in Sedgwick County in the past 5 1/2 years, totaling more than $7 million in claims.
It's part of a nationwide sweep by Midland of old and often written-off debt that has brought the company more than $1 billion in collections in just the past two years.
The majority of the local lawsuits result in default judgments in Midland's favor, because the defendants don't show up for court.
It is unclear how many of the no-shows knew they were being sued because Kansas law doesn't require proof that the defendants received the legal papers.
When it wins judgments, Midland usually seeks to get money from the alleged debtors by garnishing their bank accounts.
Midland is under fire in Minnesota and Texas, where the attorneys general have filed legal actions alleging that the company illegally mass-produced legal documents that defrauded debtors and hijacked the court system into serving as a collection agency.
Bad credit mortgage lenders Florida, Debt settlement agency Atlanta GA
www.getcredithealthy.com As seen on NBC News - consumer help and BBB Accredited. Get Credit Healthy uses the best practices in lending! Their ...
I have 5K debt. What is the lowest % that a collection agency settle a debt?
How low can a collection agency go to settle a debt considering today's job and financial market? 10%? FYI: I did a favor for someone and got tossed under the bus. I was a victim in the end. This is not debt from shopping or anything frivolous like that but I want to clear it. I have no other debt. I have no savings and lost my job.
Or not. Whatever.
IN the end that is why you don't risk your good credit for anyone else. You are probably going to get stuck with it.
I would call and negotiate some kind of payment arrangement.
As for settling the debt, you'll have to talk to the agency - 10% is probably low. What you have to consider is what it would cost the agency to bring you to court.
Generally, they'll want to avoid doing that as they usually don't have a lot of information regarding the debt, and researching costs time and money. I'd say you can probably settle for 50%. If you start asking lots of questions on the debt, they may be ok with less. Talk to them and see what they say, you'll only know at that point what they are willing to accept.
They will settle for $2500 cash in a one time payment or the full amount in a payment plan over time.
The lowest I've ever experienced is 50%.
Just ask and see what they can offer but only take what you can afford.
In the mean time, you should sue your "friend" to recoup your loss.
Why should they just get to walk away leaving you holding the bag?
Do I have to pay a collection agency a debt that doesn't show on my credit report?
I have had two collection agencies recently try to settle debts with me that are very old and do not show on any three of the credit agencies' reports. Do I have to pay them or are they just trying to make money off me? I have heard this referred to as "zombie debt." Thanks for your help.
What they are doing is buying debt that has passed the statute of limitations for pennies on the dollar in hopes of frightening you into collecting it. They will take you to court, you must show up and state the the statute of limitations has expired. (In most states 4-5 years) if you do not show up they win by default and you have to pay. The problem is most people do not show up and thus lose the case by default. That is how these leaches make their money. In addition they cannot add this item to your credit report. In simpler terms fight it, let them know you do not remember the debt, and in either case the statute of limitations would have expired, and if taken to court show up
What is the next step to take when you try to settle a debt with a collection agency and they do not respond?
I have a phone bill with BellSouth of TN that is in collections with CBCS. The bill is from 2002 and showed up on my credit report in 2005. I sent CBCS a settlement letter offering 25% of what I owed. They did not respond so I sent another letter offering the same a few months later. Again no response. I sent a third and final letter trying to settle and no response. I hunted their # down on the internet and called and they guy was very rude and said "No, were not gonna settle. CBCS does not settle!" Has any one else dealt with these people? Any suggestions? I really want this taken care of and off my credit report before next year because I'm going to puchase a home.
CBCS has purchased this debt. They own it. It will not help to contact the telephone company. The reason they will not settle with you is because this is considered a utility bill. Collection companies, even though they could, will not accept partial payments for old accounts. Occassionally, when the bill is very, very old they will accept a lesser amount. Your's is not terribly old. You could contact a supervisor and offer a larger amount, but I doubt that they will accept anything other than full payment or a payment plan. If you are purchasing a home next year, you need to get this resolved quickly. It can take 12 months for your credit score to get anywhere near normal after something like this. If your FICO score is too low, you'll end up paying a higher interest rate on your mortgage; that'll cost a heck of a lot more than an old phone bill. The paid in full will need to season on your credit report to get this off your back. Don't waste time disputing the debt if the account was in your name, regardless of the circumstances. If it was incorrect, it should have been disputed with the phone company back then, not now with someone who could care less. Be sure to get a paid in full receipt from CBCS. If they don't report it correctly, at least you'll have the receipt to show the underwriter when it was paid. They can manually underwrite your loan and adjust your FICO score appropriately, if needed, when the time comes. It is smart of you to think about this now. Next year is not the time to deal with this issue. Good luck, and happy house hunting.
You might try asking CBCS to delete their report to the bureaus (all three of them!) in consideration of your payment in full. They may not, but it doesn't hurt to ask.
LC
As far as the company you referred to no I have not dealt with them. Ask to speak to a supervisor then go from there. You were right to try using letters, did you send them certified? Sorry I am sure I did not help much witht his situation but maybe for a later time if this should arise again.
While you have a moral obligation to pay the account in full, if the agency is not willing to totally remove the account from your credit report, there isn't a whole lot to be gained by paying them.
Good luck!
Have you sent a debt validation letter to the collection agency?
If not, I would suggest that you do. Many people think that when they get a letter from a collection agency that the bill must be theirs, and the amount is the correct amount. That is not always true.
In many (if not all) states, a telephone bill falls under utilities for SOL, you need to check your state statutes since you may be out of SOL or close to it.
If this is the first collection agency to handle the account, they have probably purchased it for around .50 cents on the dollar, and that may be why they are refusing your offer. If it is the second or third collection agency (or junk debt buyer), they have probably paid less.
I would suggest that you send a debt validation, send it certified mail, return reciept. When you recieve the green card back, send a dispute to the credit bureaus. It is a violation if the collection agency verifies before sending you validation.
"If" they do properly validate the debt and you want to pay, you might try sending another pay for delete (PFD) letter. If they are the first collection agency, try for 60% of the "orginal amount". Include in the PFD that you are requesting that they will delete from your reports after payment. That they will not continue to collect. That they will not sell the debt or sell the remainder of the debt. (collection agency's have been know to sell a debt after payment if there is nothing in writing)
If you find that you are out of SOL on the debt, after sending your first debt validation, it's within your rights to send them a SOL letter and tell them to pound sand.
You might want to click on the links I have provided.
The second link is a self help credit repair site which has some fantastic info that will help you in handling your repairing credit.
how to negotiate/settle debt with collection agencies to raise credit score?
i have 70k in debt, all of which are in collections. I have called a BK lawyer to help me but got scared. don't want BK to stay in my record for 7 yrs. someone told me that that's the last time i should do. is it true that if i try to settle/negotiate my debts, then it wouldn't take as long as 7yrs for my credit score to go up again? how do i negotiate/settle my debts with collection agencies. they're mean! i'm terrified of them! please help. i'm in big trouble - my entire family is affected, esp. my 3 kids!
The first thing you need to do is take control of the situation. It really sucks and you probably have been putting it off because it is not something that is very fun to do. You need to call the collection agencies. They are not going to be mean to you. They are professionals and if they are not nice to you on the phone, you can ask to speak with a manager. Call the collection companies and just tell them that you have been having som trouble paying bills. All they want is to hear that you are alive for the most part. They want reassurance that they are going to see their money. So when you are talking to them, ask them how much it is that you owe. They will tell you and then they will probably ask you when you can pay it. Tell them you can't pay it all at once, but could make monthly payments. They will gladly do this most of the time. Like I said before, they just want to be informed that you plan on paying them back. That is the first step in this. You need to notify them that you plan on paying them. Once you set up an amount to pay them each month, try to stick with it and not be late. If you cannot make a payment that month, call them and tell them that you can't make it, but give them a date that you will be able to pay them by. Communication is the main thing here. You just need contact them and begin working with them. A lot of times they will settle tha amount due for less than is owed just to recoup some of the money. You need to address this situation right away. It won't get better by letting it just sit there. Give them a call and just talk with them. You will feel so much better. A huge weight will be off of your chest. It might take a long time, but you will be going in the right direction. Good luck, I hope it works out!
It doesn't sound like you have the ability to negotiate yourself out of this debt. How did you get so far into debt?
How much should I make my initial offer to a collections agency to settle a debt?
So I've got a debt of 2999.17, and they sent me a letter offering 35% off if I paid in full (1949.46). I'm sure I can pay even less than the 2 grand, but I don't want to aim too low at first, because I know it'll be some sort of haggling situation.
Also, I don't know where to set my bottom line of what I simply will not pay more than. I really want to clear this up, and I really want to pay as little as possible, but I haven't dealt with these people much in my life.
Collection agencies typically pay 2 cents on the dollar for collection accounts, or 2%.
Offer 5%, which they will likely refuse. Before starting to work upwards, realize that the person on the phone wants to make as much money off of you as possible, so instead of negotiating the typical way, be prepared to end the call.
Don't settle on anything until you have talked to at least three different people there over the span of at least a month, and try to be in the 25% - 50% range before settling. Right now, it sounds like you have a long way to go.
If you're going to be a jerk about it, offer then 60% of it.
Don't ever ask me for money.
I was brought to the hospital via ambulance in January and I gave them my health insurance info. The ambulance service was a private service and they never billed the health insurer nor did I ever hear from them. Six months later they sold the "debt" to a collections agency - - to which I said here's my health insurance information again, I'm not obligated to pay and then collect from them, it's not my fault that the ambulatory services people never billed them. I haven't heard back in 2 months now but if I do, they're not getting a penny.
If they are simply collecting the debt for your original creditor, they may have a lowest amount they can accept, and will stick to the 35% offer. Some collection companies might sue, especially if they know you have assets like a house. Get everything in writing.
What is the minimum amount a collection agency will settle for when paying off your debt?
The amount that companies pay for bad debt depends on the type of account and its age.
In general Debts that have recently been charged off: 6 to 7 cents on the dollar.
Accounts that are slightly older and on which a collection agency or two has already taken a whack: 1.5 cents to 2 cents on the dollar. Years-old, out-of-statute debts: A penny or less.
BUT you must know that if you make an offer on a debt that has past your states statute of limitations to seek legal action, you will reset the clock and they can refuse and seek a judgment in court. So first check your states SOL on debts.
Here is a web site where you can check
http://www.bcsalliance.com/statute_of_limitations_on_debt.html
Hope this answers your question
What is the best possible way to settle with a collection agency a debt that is at least six months old.?
Negotiate the amount down by at LEAST half. Then say you will pay that lessor amount as long as they remove it from your credit and they fax you a copy agreeing to those terms. Then pay the lessor amount. Remember HALF!!!
Is it too late to settle a debt if a collection agency has already sent me a notification to appear in court?
What steps do I need to take to verify a debt collection agency's validity in the U.S.?
A supposed collection agency called me to settle my debt. I told them to send their bill along with an itemized report to my address. They asked me my address, and I answered that they should ask the client they are collecting from. Now what measures should I take to make sure they are who they are, and that they're working for whom the claim to be.
There's a lot of good information in the link below. I would also run their name at Better Business Bureau.
Can I be forced to settle a debt with a collection agency instead of the original creditor?
Lets get something straight.
You have no legal obligation to even talk to a collection agent. Your debt is to the original creditor.
Whether the creditor wants to continue to negotiate with you is up the them. If they refuse, then you will either have to deal with the collection agent or just ignore the debt.
Any "obligation" that is made is between the collection agent and the creditor.
Therefore, ALWAYS contact the original creditor to see if you can work out a deal.
agency collection debt settle - News
|
Dealing with debt collectors - Chicago Sun-Times Dealing with debt collectors If you have multiple debts in collection or difficulty dealing with a collection agency, contact a consumer law attorney for help. 6. |
|
Press Launches Fresh Round of Collector Scrutiny - InsideARM Press Launches Fresh Round of Collector Scrutiny You may have noticed a lot of articles in the mainstream media recently on debt collection agencies. Nothing new for the accounts receivable management |
6 tips for dealing with debt collectors
Washington Post If you have multiple debts in collection, or are having difficulty dealing with a collection agency, contact a consumer law attorney for help. 6. Boom times are back--for collection agencies
|
|
Debt Settlement Industry Survey - ACA International Debt Settlement Industry Survey The survey is intended to shed more light on the exchanges between ACA member agencies and debt settlement companies. Collection agency members provide a |
|
Import support debtors to be named and shamed - ThisDay Import support debtors to be named and shamed To this effect, a debt collection agency hired by the government to recover the funds, Msolopa Investment Company Limited, is this week expected to name |
