What to Say, and Not Say, to a Debt Collector
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- Опубликовано: 20 июл 2016
- Most people shouldn't have a problem talking to a debt collector, but if you're uncertain of how to handle yourself over the phone, we're here to help.
Knowing what to say, or what you shouldn't be saying, is key to setting the foundation for a good settlement with your bank or a collection agency.
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Michael Bovee started CRN in 2004 with a mission to provide people in need with detailed credit and debt help. The DebtBytes Channel is an extension of the CRN blog, and is dedicated to finding the debt relief option or strategy that works best for you. 
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Exactly the type of information I needed. Thank you for sharing Michael Bovee.
This is great! I do these things you advise. You've also given me some great tips I didn't realize. I'll keep watching!
Sounds like way too much conversation between you and a debt collector. I say the less talk the better. Get something in writing.
Needed to hear all this. Thank you.
Thank you for these valuable information.
I've heard that when a debt collection works on commission it's better to work with them at the end of the month because they have goals to meet. When they have goals, they need the money by the end of the month. So when trying to do this it's been difficult for me to get something in writing in time for me to get them the payment by the end of the month.
That's some damn good advice.
Thank you it’s 4/13 /21 I will call them at end of the. Month
Michael, AWESOME information and insight into the world. Keep it up!
This info is GOLD. Thank you for these videos
Hi Michael-thanks for this informative video! It really helped.
First, make sure the debt collectors can't find you. Don't use your real address when registering to vote. That's how many d/c find you. Don't have magazine subscriptions from big-name magazines. Never tell your card issuer your real address or phone number. Go paperless billing online. Never "update" your contact info "for security reasons" this has only one purpose: To sue you. Seven years ago I walked away from 44k of debt having credit cards initially with 6% interest rates then jumping up to 28% having never been late in paying. So, screw 'em. They asked for it. Then my credit score was in the toilet. I took all the money I saved and bought a car, made 5 payments, then paid the car off in full. This made my credit score jump 200 points! Now, I'm debt free with great credit.
Dan Mackey
How can we talk more
Very nice story. Also, never put your current address on fishing or hunting license. Your conceal carry license must be current for FBI background purposes but that's held private in most states.
And NEVER, EVER, leave a forwarding address with the US Postal service when you move. Just inform anyone you want to know where you moved yourself because the US Postal Service will rat you out. When I walked away from over 125K in debts secured and unsecured, a few years ago I told no one where I was going not the post office, not the nosy neighbors. Not even my last employer, I just rented a uhaul and moved out in the middle of the day. I even locked the front storm door from the inside and took the mailbox with me so the lazy postman could not leave any mail so it would be returned to sender. No regrets.
You must not have a job because for that money, you would have been sued for wage garnishment lol. I call BS.
Wow, what a great way to commit fraud! Thanks!
The first thing to really do before giving the debtor any information is to request sent information proving that it's your debt to begin with whether it is yours or not. There are too many debt collector scam companies out there looking for vulnerability. You can tell them it's you but don't admit to it until you see the proof.
Tell them it’s you but don’t admit to the debt? People get in debt for MANY reasons. Chargebacks, missed payments, medical reasons, & job loss. So what would cause you to not admit to it? Bad service is it’s for serviced goods? It’s all situational. Talk to the debt collector, that’s all.
My bill collector mailed me a stack of proof do you have any suggestions?
@@bbynkz You are not admitting to it because you don't know if the company whos calling is a legit company. Admit to it like you say be prepared for a whole bunch of so called legit companies to raid your number.
@@blackqueen2me342 The next thing to do is to request your annual credit report from all three credit beraus. Do not request it online because you forfeit your rights if those companies screw up. Write to each of them requesting your free credit reports. When they arrive, look through them carefully. You should see that company that sent you proof. From there if its yours, you can start a negotiating process.
ShyRage1 there are several ways to verify a company so yea
Great Information! This is my first time to battle this and need all the help I can.
thanks buddy. You are a good guy.
Eleven debt collectors have disliked this video ;)
Michael Brown n u thief are watching this video . Must have ur parents taught not to pay on ur bills . Shame on u .
@@panyaikam9208 I was always brought up to pay my bills but if they think like they can give you a loan with a lot of interest then f*** them that's my attitude but I never had that attitude when I was younger I would lose sleep over it but now I am not bothered in the least
Some good info. Beats the crazy girl with the mask that thinks she’s funny. I won’t even link her 😅
This is glorious, I've been looking for "how do you get bill collectors to stop calling?" for a while now, and I think this has helped. You ever tried - Donadelyn Stupefying Dominance - (do a search on google ) ? It is a good one off product for discovering how to repair your credit minus the hard work. Ive heard some decent things about it and my mate got cool results with it.
Don't pay anything! It will restart the statute of limitations on the debt!
Exactly!
@Jeff Chinn That's a hard question to answer because 15 years is a very long time and that is considered a "STALE DEBT" and the statue of limitations in most States is usually 5 to 7 years. If you make a payment on the debt then you just reinstated a new statue of limitations. Your admission to the debt is what makes your situation complicated. Sorry that I can't give you a better answer. Hope that you get it all worked out.
@Jeff Chinn look up your state statute of limitations for collections/debt. Where I live it's 10 years. Throw that at them and if they don't comply then tell them to take you to court. Just keep in mind you can't pay anything on it within those limited years or the statute will reset it's self from the last time you made a payment. You should have a shot, I'd ask the advice from a consumer attourney before and if it goes to court tho. Don't be nice to the credit agency either or they'll walk all over you.
@Jeff Chinn That will reset the clock!
Russell Howell Thanks for your response sir, by the way I intend to pay the full money in a single goal and also asking them to note Paid in Full. It’s not a problem for me, I was only set back due to divorce but I’m good now
@MichaelBovee, Thanks for sharing Great Ideas & Info.
Thank you. My debt is from breaking a rental lease. Total 1600$
If they buy the debt...sounds like it now belongs to them and they can pay it! LOL! For...I just keep paying what I can afford to the company I contracted with. I didn't contract with those collectors and I don't pay them, especially with all the scammers out there!
whydoyoucare27 that means u r stupid
@@panyaikam9208 Pretty hard to be stupid with a 146 I.Q., but it works for me and my 764 credit score! :)
whydoyoucare27 in a way u r thief 😂
@@panyaikam9208 No, I am not. I pay what I owe....to those I owe money to. I do not owe a collection agency. And IF I am sent to collections over fees I refuse to pay that I feel I was shyster-ed into by THEIR unethical ways...then I do not pay them. I will not be taken for an unfair ride.
whydoyoucare27 than why do u think that u bank sold ur accounts to the DC ?
A "debt buyer" is not a "creditor".
Not all debts are bought. Many are still owned by the original creditor.
Hi Michael,
Let me start by saying that I think it super cool that you have this channel to help people with their debt problems. I got into some deep credit problems about 5 to 7 years ago and for the most part they have all aged out. I do have one account that was originally a Capital One credit card which has been sold off to Portfolio Recovery about 4 years ago($1,097). It is still active and not set to be removed from my credit reports until 2019, so I would like to do something about it because the subcontract company that I work for part-time has some new requirements for their employees which require stricter qualifications regarding ANY delinquent credit accounts. So basically I will not be given any job offers from that company until I either pay off the account, or set up a payment plan to pay off the account (and I will need to provide proof in writing). Other than that company I used to get part-time work from I do not have any income from employment. I am going to school online and I am living off of my student loans (so obviously I assume that Portfolio Recovery is aware of this when they look at my credit report and see the GESLI(?) $23,000 account loan).
I had not heard from Portfolio Recovery regarding the payment of this Capital One account in about 2 years, and I recently contacted them about setting up a payment plan (without letting them know that it was for a job requirement). The customer service guy that I spoke to told me that I needed to pay the full amount and that they would not offer me any extended payment plan, so I told him to go pound rocks because I did not have the ability to do that. Now today, out of the blue, I received a letter from them in the mail with some payment plan options. One was for the total payment of $878 to settle the $1,097 debt, the next option was a plan which would have me pay them $78.00 for 12 months, and the third option was to pay $33.00 for 33 months. As I said I do not have any income but a friend has told me that he would loan me $500 if I can get them down that far for a total settlement. So my question is this, can I get them down that far and what can I do to ensure myself that I get a letter stating that I have paid that account off and have them say so to the credit bureaus? Thanks so much.
It is possible to settle with PRA for 50% of the balance owed. Check out this video about settling with PRA: ruclips.net/video/1DJ0DrnRIGg/видео.html
You may have to make several phone calls to negotiate lower. That is common with many debt collectors.
Hi, love your channel, thank you for providing this information, invaluable!
I have a debt collection agency Phoenix, that accepted my offer, but they said they will only Email the acceptance letter only if I do check by phone. Is this normal?
They all like to get the payment in the system over the phone when they can.
Did you get the email settlement agreement as an attached PDF? That would be normal.
Once your debt is turned over to a collection agency your screwed so why pay anything
Usually so you are not screwed more, or have financial goals unresolved collections will hold you back from, or you identify it is the right thing to do for yourself.
+William Adams - there really is no good reason to pay once your debt is charged off from the original creditor and sold to a debt buyer. Your credit will NOT get better just by paying off the debt that has been reported as "delinquent" on your credit report. I just wait for them to sue me then I get a lawyer.
Most people want to avoid being sued.
Most debt is currently not sold to debt buyers.
Credit does improve with resolved collections.
My credit went up from paying an old bill in collections. 17points.
Cant, they just sue you for it and then make you pay for all the court costs too?
I am so intimidated to call yikes!!!! Maybe I should call u instead
Dont be. They are bottom feeders. Dont let an 18 year old in a cubical 2000 miles away threaten you!
Lisa Wood I’m about to play this game too ., I’m nervous af ! 23k between 4 balances
Michael, your videos have been a godsend.
I was on the phone with someone from Capital One just today, and it was a nightmare. I am in a situation where I have multiple credit cards (capital one, Amex, Target, Walmart, Amazon, Belks). My wife has a medical issue that has recently caused her to be unemployed, and it is going to be a permanent situation, and a permanent loss of income. I have literally never missed or been late on a payment on any of these card, my capital one card being 6 years old. I am current on all of them right now, and have not let a single one lapse. I asked for a lower interest rate and was denied, and the best the lady at the Early Assistance Dept. could do was lower my payment to $76 a month and shut down the account. I was irritated because I have been such a good customer, so I thought they would be more helpful. but I now see, after watching some of your other videos, that my desire to always pay on time may be working against me. I get the feeling that I was being worked.
The outcome I would like is this: I have to get this high interest credit card debt off me and start saving, paying as little as possible. I've got three kids who need for me to be able to continue saving for their college tuition. Right now I am flat broke because of the credit card payments; without them, my family would still be able to live comfortably, though humbly. Having a great credit score is not as important as it may be to some (I already own a home, two cars, and have family that could cosign with me if I ever needed another loan), so essentially, I need to get out of each of these debts for as little as possible.
I have three questions for you: 1) On average, how long would I have with banks like C1, Synchrony, Citi, and Target before they lawyer up and file a law suit against me?
2) Is there any way to know if they are about to file a law suit, but haven't yet? Would they contact me first, and give me a chance to negotiate? I imagine once that happens, then my options for lower payments are reduced.
3) How could I connect with you, or someone like you, to help me navigate this process? If it is affordable, I would appreciate the help.
Thank you.
Call me at 800-939-8357 ext 2. I will go over those questions and all the ones you are not thinking to ask.
Thank you so much, sir. I will call you tomorrow, Wednesday, 5/1
Yes I would love to do on my on because I don't like the debt consolidation company they try to get more money out of me thank you for your help
These videos have been very informative. Do you have a video on how to defend yourself after being served papers? The do’s and donts of defending yourself at a mediation? Or would the advice on this video suffice?
There is a channel on the home page for that.
@@MichaelBovee Question: Would telling a collector that everything costs, on average, about twice what it did 15 years ago but my Social Security checks have not increased significantly over those same 15 years be a good excuse as to why I recently quit paying my CC bills?
Thank you for the video.
What percentage of a debt 2k you'd say is a good closing offer? Would 25% be a low ball?
And are emails for proof of closing a good option?
Who is the creditor?
Is that who is collecting on the account today? If not, who is?
When did you stop paying on this account?
The answers can impact my feedback.
It is becoming more common to get the settlement agreement letter via email. I would prefer it to be attached as a pdf if it were me.
Hello, my uncle currently has a 5k judgement on him for Discover Card. I would like to help him settle this debt. Judgement is from 2015. Do we need to contact the creditor's attorney or do we call Discover first to get started. How much should we realistically expect them to settle for?
Hi Michael,
Thank you for creating this video! It's super helpful. I have a private institutional loan that just went into collections and received the letter on the 17th of this month. The collector is COAST PROFESSIONAL INC and they are seeking $13,478.81 which is something I definitely do not have. Just trying to learn more about what I should do because I feel pretty stuck...
What is the debt for? Who is the original creditor? I can offer better feedback when I know those details.
Also reply with what your goal is for resolving the account.
Well done!
Amazing info in this video. Thx.
Can they see through my credit report the amount of minimum payments of the other bank accounts?
Where could I find their lowest percentage allowed for the deals?
THX
They can see that you are current with other accounts, and credit being used.
What you can settle for varies by creditor, how late you are, who is collecting, lump sum vs stretched out payments, and often enough, things unique to you.
Michael Bovee thank you 🙏
Great video. Do you still offer free consultation?
It's an account I didn't realize hadn't been paid when I move out of the country. I'm moving back to the US and will be renting an apartment and don't want it to impact the possibility. I may just go ahead and pay it in full since it is the only negative thing on my report.
GOOD STUFF!
You are the most valuable person I have listened to by far thank you. I will be calling
Hello,
I was wondering if I like to discuss a couple debt issues with credit cards or pay day loans
Am I able to call in and speak to you or some one on your team ?
Awesome video.
Damon chrysler. it hasn’t prevented me as of yet per say but that’s what I’m trying to avoid. I’m fearful that if I go forward and try to buy a house in the near future that this will prevent me from being able to do so and I don’t want to begin the process, find a house and have this husky the process. I’d like to put this behind me so I can move forward confidently.
What is the best settling mount for discover card? Its an old judgement since 2006.
Judgments can be settled, but the savings is often not great. I see between 50 and 80 percent, but sometimes you cannot get the law firm to budge.
What is the amount of the judgment?
Did the court grant interest, and if so, at what rate?
How prepared are you to pay the settlement with a lump sum?
Hi there Michael, thanks for making these videos! I have a question on a debt. I wasn't able to pay on it back then while i was in college. Anyways I have saved up quite a bit with my new career and i was wondering if i can negotiate with the debt collector to pay in full or a percentage of the amount owed to have them remove the entire account off of my credit report? Im waiting on the results of a dispute that i submitted to experian before i contact them. Any information would help. Thanks!
Who is the collection agency/debt buyer reporting? What is the balance owed as of today? When did you stop paying? What state are you in?
Same situation. $1065 on visa platinum own by LVN. Now I have judgemebt against me. Almost 21 days to appeal in Texas. What do I do?
Thank you for this informational video!, I owed about $10,900 in credit cards, i just finished paying all of them in three months, but i have a collection from capital one for $3490, I called them several times to settle for $1500 and denied me, they would only go for $3000. I live in NY, THANK YOU SO MUCH for your help!
How many months late are you on the Capital One payments?
@@MichaelBovee Thank you so much for taking the time to respond me back!! I appreciate your time tremendously.
I think a little bit over a year, I still owe student loans ~ 31,000, which plan to pay it over time- Thank you so much for your help! I also have a small collection from my other school ~$600 which is like 5-6 years old, can a settle this one, or you think i should just pay this one.
Settlements with Capital One after a year late are typically much better than this. I would encourage you to get help with this. You can schedule a consult with me here: consumerrecoverynetwork.com/free-debt-consultation/
Small balances, like the one with your school, do not settle all that well. More on that here: ruclips.net/video/QOSmQ47CmaY/видео.html
It is worth a shot to negotiate a better outcome on small debt, but be prepared for a higher outcome is all.
Good info. Mr. Bovee. My situation is this. I have a collection account for an electric, from the UI Company, that originated in May of 2019, for $1200, with IC Systems. I have read reviews about them and they were horrible. Is this something you could handle, and what would that cost me?
I typically do not work on utility bills.
Good common sense information that most people neglect to tell you about talking to debt collectors. Got two to remove the listings from my credit report but they still haven't sent me a letterhead agreeing to the settlement offer I proposed. Still disputing another that could not verify what the acct was for.
Thanks for your post Leo. I'm currently in the same boat you were. I have settlement proposals out to 3 collection agencies only if they wiped my report entirely after receiving payment. I haven't heard from them in a month or so. Are you saying they didn't respond to your proposals and just wiped the debt from your credit report?
Hi Michael, your videos are very informative. I have a question for you,
I’ve been served court papers this September 16. the lawsuit is from Mandarich Law Group. I was in contact with Nevada Legal Services, but it seems like they might be buying time... I have until the first days of October to answer the court or came to a settlement with Mandarich before I get a judgement. I am very anxious. I can barely concentrate on my college classes. Should I try to call Mandarich and come to a settlement with them? the lawsuit is for 3,317.00, I could attempt a settlement for 1500 maybe a bit more if I push it. would you recommend to wait this last 9 or 10 days for this nonprofit to see if they can help? or should I use this precious last days to negotiate to my advantage with terms in written etc. I have been sued by the moore law group last year... I negotiated with them and payed a little less than what I was been sued for... For that case, Nevada Legal Services wouldn’t, initially, have a straight forward advice, and would leave me like hanging for days. I hope this is enough info for the situation I am in, I have a gut feeling that I should do what I did the last time I was served papers... I really hope that you could respond!
More often than not I find it helpful for people to have someone in their corner, who knows their way around the courts, or the law firms suing. Having said that, many people reach an outcome they like, or are confident they can follow through with on their own.
If you wait a few days for legal services to get back to you, you could still figure out how to craft an answer, or general denial to the lawsuit, while you wait.
If you end up filing your response with the court, you can still call Mandarich to negotiate after that. And you may find they are more negotiable than if you had started off talking to them with a defense, or without the legal service on your side.
I also think you could come to some agreement you can live with today, if you called them, but you would likely have to sign a stipulation or consent to judgment if paying over time, now that they have sued. But like I said above, you can still do the same thing after defending too.
MICHAEL! SAVE ME! :) I am so happy to find your channel. I will be using your resources.
What is reasonable to expect from US BANK, Mastercard that went to collections at 9k?
Life has been crazy the past 5 years. And I want to bounce back.
When was the account last paid? Do you recall name of the last debt collection agency to have your account?
@@MichaelBovee You said to ask in the comment section what percentages these card companies will accept for settlement. But all you do is ask for more information.
Hi there, do you know typically how much a debt collector from citibank would settle for on a ~10k debt, they have a default judgement (long story) its 3 years old the judgement but the case is from 2010. Perfect talking points! I really appreciate the video. I Was told ~30-50% is about right. What would be right cost for lawyer handle this?
Judgment debts often settle for 50 to 100 percent of the balance owed at the time of negotiations. Lower than half is not common at all on judgments, while higher than half is.
Professionals fees for negotiating are all over the map. You call in for a consult at 800-939-8357 ext 2.
Do you help with VA and university debt collection issues?
I can offer feedback about most collection issues. You can post the particulars for feedback here, or call in to talk about it. You can reach me at 800-939-8357 ext 2.
Hi what could I expect to settle for on a 3.5 year old debt through Jefferson Capital Systems for verizon wireless totaling $2,000?
I would be targeting between 30 and 50 percent as realistic. What you can settle for is often going to be based on how a collector views you. If you are paying 8 things on time that appear on your credit reports, you look like someone who can pay compared to someone who has nothing being kept current on their credit, and has other unresolved accounts.
Great info. Right now I been and keep getting calls from collectors regarding school loans. Been paying 1 loan out of 4. Do they sue if I don't pay? Anything I can do to waive any interest?
Are your loans federal or private? Are the loans in default and been assessed the large penalty that comes with that?
Hello Michael, What are your thoughts on Contract law? When a collection company calls you, asking them to give you proof of how much the paid to aquire the debt. I would appreciate you guidance and knowledge in this area. Thank you
I would encourage you to talk with an experienced debt collection defense attorney in your state.
I am not an attorney, and also do not understand why what you are asking has anything to do with a contract.
happy new year mike, are you familiar with verizon 3rd party collections and what to expect with settling.
Verizon can use several different collection agencies over time. Who is trying to collect from you right now?
jefferson capital systems balance is 1k.
also mike is it ok to bring up what they paid for the file and how should i use that as leverage to say ill pay little bc thats what they paid for it?
and if i settle with them and it gets removed do i still owe taxes since it would be considered income?
I see settlements being around half, but with potential to go a little lower too.
5 yr old judgement with MCM, another held the paper before them,2 attempted bank account levies in Florida, what percentage from you're experience can be negotiated?
judgments tend to settle between 50 and 80 percent. There are some limited situations where people can get lower, and also a small number of times I have seen collection law firms hold steady at the full amount.
I really appreciate your advice. I realized that I was being sued for a debt only because I started to receive numerous letters from lawyers who were interested in representing me. My debt exceeds $15,000. Do you recommend hiring a lawyer? If so do you have a list of reputable lawyers who will not seriously add to my debt?
What is the goal for resolving the debt? Do you want to try to defend the case to trial, or are you looking to defend it in order to optimize your settlement?
Thank you for this video. How do you handle creditors for Comenity bank claiming that the merchant only allows 80% settlement? Also, what should you do if they’ve filed a judgement but you haven’t been served? Thanks in advance!
How late are you on the Comenity account?
What is your goal for resolving the account you have not been served on? Is it a judgment entered in the court you only learned about way after the fact, or a recent lawsuit filed that you have not been served on.
What are the balances on the debts?
Honey I never got served and my bank account was frozen .. chase took $75 investigation and $13 went to them I guess( why the low because it was the only $93 I had)😭 ..I called the court and the lady spoke to me telling I knew I own this money and blah all I was asking how to solve this problem because I didn’t have the money( thanks god pandemic hits)I haven’t heard from capital one or it’s lawyer since then:)
Hello- I love your videos. On credit karma I noticed a new credit card is on my credit report -it says joint- it has $1000 limit and the user charged $800. I phoned synchronacity to tell them about it- but I cant get thru the voice menu- because they ask me "my" account number. I dont know any account number, as I never applied for this card. When I googled that card is for lasic eye surgery or dental work I see dozens of people have this same problem..
I would dispute the item as not mine directly with the credit bureaus that have it showing. Check out this page for disputes: consumerrecoverynetwork.com/dispute-tradeline-diy-credit-repair/
whats does KLS FINANCIAL SERVICES settle for in your experience?
Who are they collecting for?
Good day! I am glad to have found this channel. I am sincerely asking for directions, please help! I have two accounts in collection (Midland and Cavalry). I have been diligently trying resolving the situation, but I feel like I hit a roadblock. I have sent numerous settlement offers and “pay to delete letters” to CAs and also several letters and emails to the attorneys assigned to my accounts, however, NO ONE is getting back to me. For the past five months, I have been sending/emailing follow ups and I get absolutely nothing back, no response. I have spoken to several attorneys in my state (AZ)- legal consultation, but because I am wanting to settle before the case gets to court, they cannot really help me. What else can I do? TIA.
I typically want to call in to negotiate, not send mail. You do want things in writing, but from them, and before you send them money.
Cavalry deletes if you resolve the account with them. They do it for everyone as a matter of policy. You do not have to negotiate this as part of a settlement.
Midland Credit also deletes when you resolve a debt with them. The account has to be more than 2 years since you stopped paying the original creditor: consumerrecoverynetwork.com/midland-funding-mcm-encore-receivables/
Would I be able to settle a payday loan if it has been reported to a lawyer or debt collector who is treating to put the debt on my credit report?
Payday loans can be negotiated for a lower lump sum payoff.
HI, I just received suit papers from capital one for a credit card that was originally $5,000 and ended up being $5,900 which I defaulted on almost two yrs ago. An attorneys office bought the debt and is suing me. Any advice on if I should call them and try to settle or what I should do with the court clerk? I will not be able to afford paying that much at a small period of time at this moment
If it were me I would file an answer or general denial to keep my options open for settling in a few months, and still avoid a judgment.
It is a good idea to connect with an experienced debt collection defense attorney in your state. Where do you live?
HI, thank you for the video. I received a Portfolio Recovery letter of their intent to sue for a Citibank account for $3,371 but it's been since Aug 1,2013 last payment & I live in CA is it true they can sue me? I thought the statue of limitations in CA was 4 years? I really don't want to pay it since I was told the clock would restart & it's almost the 7yrs but any suggestions?
Oh btw- I have not received any settlements from them. Only collection letters. Maybe because years ago I was sued by Amex & I paid them which obviously they know because it's on my credit report. But yea Portfolio is trying to sue on a account that charged off almost 5 years ago in CA can they?? And would it be prudent to note the CA civil code for statue of limitations o debt accounts 4yrs that's already passed when writing the debt validation letter?
That may be a collection violation by Portfolio Recovery. I would talk aver your situation with an experienced FDCPA attorney in California. Jeremy Golden is a really good one, and he works with you no matter where you are in CA.
Hello Michael, I was wondering about an account I have for a car i got in May 2014. It was repossessed in Jan. 2015. Yikes. The account balance is 4100 dollars. It's through carmax. How much would be a good starting point of $ for settling the debt. I've come into a bit of money and I'm looking to get this off my credit report. Thanks!
You should not expect to be able to negotiate a settlement and get this off your credit. You likely could not offer 10 times what you owe in return for removal. But you can expect them to update your credit that the account is now zero balance owed.
I typically target deficiency balances on auto loans and leases at 40 percent (if not sued on them). There are situation where you can shoot for lower, and some where you have to settle for higher.
Michael,
Thank you for taking time to share this information. I have called Discover card in a attempt to settle that account but they say they do not do settlements? Would you agree or is that just their leading line?
Thank you for your time!
I would wholeheartedly disagree.
How late are you with payments?
Only a month behind at this point. They lowered my interest rate in March and are threatening to raise it back up if I don't bring the account current. I figured it was just the norm at this stage. Thank You!
You may want to check out my article series about settling with your original creditor: consumerrecoverynetwork.com/credit-card-debt-settlement-program/
You will understand better what you need to do and when. You are months too early to talk settlement with virtually any creditor.
I see banks set up a percentage on the dollar of how low they can go (4:45), how do I know how low Banco Santander can go and can I break that threshold? I think everything is negotiable in life.... Isn't it better to get 20% vs. than nothing?
I see 35% on those deficiency balances with Santander as being the floor on too many files to suggest 20% is a realistic settlement target.
Banks do not think individually. The set policies and tend to stick to them, and with few exceptions.
Hey, so i have something negative on my credit score for about 5 years and i assume it has gone through multiple agencies but im not sure because i have moved 3 times since then. my debt is around 2k and it was originally from national grid (my only debt)... any idea on a round about estimate that i should settle for?
NTL RECOVERY AGENCY is the mark on my credit score.. any advice would be appreciated
Generally, I would look to settle with power company and utility providers for the full amount if I will need their service again in the future.
Otherwise, I would target 50% or less on a bill this old.
I am dealing with afni and would like to know how low do you think they will go. They are coming after me for $2262.66.
Hello Mr. Bovee, I have credit card debt but they are all current. However most of them have gone way high on their payments and I can’t no longer afford them. What % is the lowest USAA, Discover and Amex would take to settle? Highest card is over 12K with USAA. Thank you in advance.
The lowest you can settle a debt for is often going to vary from person to person. Generally speaking, I would target all three of those creditors at around 40%, but Discover and Amex can often be 50% or higher depending on the timing and circumstances.
My son was in the military. He was killed in 2012. We paid off all the debts we knew about (not sure if we had to, but it seemed the right thing to do) and we were not co-signers on any of his debts. Well, 4, 5 up to six years later, we get calls from debt collectors on bills we didn't know about. Most were good about it, wrote the debt off. A few we found to be scams and obviously we ignored them. A few we could not determine if they were legit, or scams, and they were persistent, aggressive and hostile.
Great video. QUESTION: You mentioned that debt collectors have access to our credit reports. I'm being called now by one who is working on consignment with a local moving company who damaged my piano so I withheld payment. The mover never got my SS# or birthdate -- and I never gave it to the debt collector -- so is there a way they could have accessed my credit report without that info? Many thanks.
I would assume they do still have a way to view your credit reports.
Hello Mr. Bove! Thank you for making this video first and foremost! I have debt is 3 years old property debt, happened during Covid, 7,900, with pro collect. Any chance you could help me find out if I could settle for 30%? I’ve heard this company can be a bad one to settle with.
How low you can negotiate a debt for can often vary, and not just collector to collector, but from person to person. You may look more or less collectable to this collection agency than someone else based on the shape your credit reports are in: ruclips.net/video/zHok7I7QEWE/видео.html
I typically do not see property management debts settle as low as you are targeting.
Hi Michael! I’d like to know what will happen to my credit score once I’ve settled with the debt collector? I have a $5600 apartment debt on my credit score that I want to get removed. Once I settle this debt, how will it appear on my credit score? My current apt lease ends April 30th and I’m not sure if I’ll be able to apply for any apartments with that debt still showing on my score.
Each of our credit reports are different. Hard to say what exactly will happen to yours once you resolve this unpaid collection account.
If this is the only unresolved negative it should be a net positive to your score fairly quickly.
The main thing, which you already pointed out, is that you are far less likely to get approved for a new apartment when there is an unpaid debt from an old place showing.
Have a balance with americollect and credit bureau data in Wisconsin. No idea where the balances came from. Any idea what to offer?
Without a better understanding of who they are collecting for, how much is owed, how old the debt is, it is difficult to offer feedback.
While being enrolled with CRN for settlement, are all enrolled debts subject to settlement fees even if you happen to settle one or two on your own?
It can depend. We historically do a ton of one on one DIY coaching.
Hi Michael,
We spoke over the phone, a few days ago about my husbands 6 yr old Capital One judgment. He's placed a call to the agent handling his account, and left a message to receive a call back.
Regarding the revocation of an attorney, is this verbal or a written statement required from him ( my husband)to the collectors?
From your experience do attorneys normally agree to the satisfaction of judgment letter before receiving payment? We want to negotiate the 40% lump sum in order to close on our house by month end.
I would do the revocation in writing.
You have no shot at getting the satisfaction filed before payment being received and funds clearing. You can get the settlement agreement in writing before you pay, and that document, along with proof from your bank account that you paid, can help you make progress on a loan while you wait for the satisfaction to be filed.
Great video Mike! I have a question regarding private student loan debt with Wells Fargo: The loan is currently in recovery with their in- house collections. They are offering a settlement of $18,000 on a debt of $45,000 (40% off) that has to be paid in two years. I still can't afford that monthly payment. Do you think we can get that amount any lower?
How late are you on the loan? If already in severe delinquency, and 40% is sticky, it may not improve.
@@MichaelBoveethank you for responding... over 120 days late
First of all thank you for putting out this video, how much does Discover and Bank of America typically settle for if they have judgements against someone who is in mess of debt?
Judgment debts tend to settle between 50 and 100 percent. More on that here: ruclips.net/video/W10tKuYkVvE/видео.html
Thank you for answering and the video
Do you have a list of the names of the Credit Card Banks to show how low they can go ? Aka like Bank of America, Barclays, chase, Wells Fargo, synchrony bank etc ?
This article covers the top 7 credit card issuers: consumerrecoverynetwork.com/review-top-7-credit-card-lenders-best-offering-debt-relief/
I have individual articles about most of the large banks, and videos on this channel too. But no running list. The results can vary from one person to the next, and change depending on how late you are, and who is collecting. Any running list would not be as useful as you might think.
What's reasonable settlement percentage target for Credit One/Midland? My daughter has two credit one cards of about $1200 each that have been sent to Midland. About 3 years since last payments. I have an offer for about 50% now. Good to go, or keep pushing? Daughter has no job, with medical issues that make employment unlikely.
50% can be as good as it gets with Midland sometimes. Many people struggle to get that low.
I am working with a Sears Citibank settlement. In 2 weeks it goes to 'Charge Off' They have offered a settlement of 40% at the current balance, which has gone up with monthly interest. I offered them 35% of the original balance, which only make a couple hundred difference. They say they're at the bottom of what they can do/offer BUT would be willing to take what I offered and them space out the remainder over the next 3 months. Should I take their offer? Or should I wait for the account to 'Charge Off' and than work with the next collection CO on a settlement?
I often find the 40% deal is better now, than dealing with the debt buyer they will likely send it to right after charge off. I find that Citibank sells the Sears debt rather than assigning out to a couple of contingency debt collectors for several months before selling (like they do many of their other account types).
Thank you SO much!!
Great video! I HAD A $6K BALANCE WITH CHASE AND IT HAS BEEN SOLD TO NATIONWIDE COLLECTION, INC (NCI). I HAVE SENT A VALIDATION OF DEBT LETTER...WAITING FOR THEIR RESPONSE. MY QUESTIONS ARE WHAT TO DO NEXT AND WHAT % SETTLEMENTS SHOULD I AGREE TO?
Why are you sending a debt validation letter when you are trying to settle the debt? When did you send it? When did you stop paying Chase?
Debt validation requests get in the way of settling in most instances.
You may be dealing with a new debt collector or Chase directly now (and the better deals often come from the collection agencies compared to Chase).
Chase stopped selling debt in 2013, so if you stopped paying in that year, your debt is just rotating around to contingency collection agencies.
Hi, great info. I owe Parnell & Parnell from an AmEx debt that’s about 10 months old
Has Parnell filed a collection lawsuit?
What is your goal for resolving the debt?
@@MichaelBovee No, they haven’t filed a lawsuit. I plan to settle for around 50% or < ultimately
Okay, thanks. Settling AMEX accounts with law firms can be a bit tricky. Let me know if you need help.
Are you familiar with how much TMobile and Comcast would settle for ?
Utility bills that are newly delinquent may not settle as well as when they have gone unpaid for years.
The balance size can also impact how low you can get.
Is debt settlement more effective with an attorney, or is the net result about the same doing it yourself?
The answer can vary depending on the situation, and the creditor involved. Can you tell me more about your situation?
Good afternoon, I have a judgement against me that is over 10 yrs old. The company I’m dealing with is Pressler and Pressler in nj. My question is this, when I try to look up the judgment online with the judgment case # I can’t find it anywhere. It seems to not exist. I’m on the nj court web site and I see other things from 1997, but not this case. I just can’t find it. Do you think they didn’t renew or file for extension.
Even if they did not renew it, it should still show up. You may want to call the clerk of court or even go down there to figure this out.
There seems to be conflicting advice on You Tube and all I know as a business owner is when I received an additional invoice for $1,700.00 dollars from my workmans comp insurance I asked for an accounting of how they arrived at that figure ( which I never received or was justified ) I got the run around. About 8 months later I started receiving calls from a collection agency. Whenever they called I told them I didn't want to be recorded nor would I verify any information about myself. Each time they insisted that they needed to record me in order to speak with me I told them that it was their problem not mine. After about 5 or 6 calls they gave up calling me , then I started receiving official letters from an attorney which I promptly threw them into the recycle bin. I never verified any of my information or allowed them to record me and I haven't heard from them for about 3 years now.
Thank you for uploading this, you're awesome. I'm just kind of worried because I contacted a collection agency on my own behalf after discovering a bill I never knew about (incurred while I was dependent on someone else, but still applied to my credit report). The agent called me back the next day and said she negotiated a settlement for 70% of a medical bill that had already surpassed the statute of limitations. I was eager to just resolve it so I agreed, but then realized I couldn't just send that much money at once. She said it was impossible to make payments on a settlement and that if I were to send in monthly payments, it would have to be on the full 100% amount. I said I'd start sending payments but haven't, yet.
This was all before I had done any research. I feel like I've just screwed myself by agreeing to things over the phone, and I don't even know if this agent was being truthful or not.
What state are you in? When was the medical service or product rendered? What is the name of the collection agency you are dealing with?
Never admit to the debt. The only recourse is bankruptcy. I am not an attorney. What I say is based on my own experience from years ago. If they sue. answer the complaint. Research, Research and Research. Go to all court sessions on time. There is security and parking to worry about. Plan for it. Send the opposing party a copy of your answer with the court stamp that you filed it.
Hey Michael I have a repo on my report from 3 years ago... the repo was from “West lake financial” and they sold the debt to “Collins Asset Group LLC”, my debt is $6,680. do you know by any chance what’s the lowest they’ll go ?
It will vary from one person to the next. Do you know how long they have had it already? Has it gone to an attorney? Do you have accounts showing as positive and being paid each month on your credit reports (home, car, student loans, credit cards)?
Hi Michael , thank you for all you do . I have a Chase on credit report that shows a balance of 17,000 zero payments since 2019, lived in Hawaii ,recently moved to CO and now trying to clear up my credit score /report. This is the only debt I have. Was using National Deb Relief and today I cancelled realizing I can call myself and settle. Using the five grand they will be reimbursing as my starting. Should I call them myself or call one of your people to call for me?
I would call Chase and find out who they have your account out with for collection. If it is internal with Chase at that moment you can talk to them about settling. If the account is with a collection agency you would then call that company to negotiate.
You can negotiate with debt collectors yourself. If you are nervous about it, or simply want someone else to do it, help is available.
Really nice video, my situation is as follows. 36k of debt with BofA unable to make min payments due to spouse losing job etc... Making mins on other accounts, no issues there, but BofA sent account to a collector and they served me with civil action for the debt. I really want to avoid court but either way I need to respond within 30 days now 25 according the notice. debt collector/lawyer in CT so do I ring Bank of America to see if they still have my account or call the lawyer?
Once your account is placed with an attorney you typically have to communicate with them.
Check out this video about being sued: ruclips.net/user/edit?o=U&video_id=LdJnrNO5nmg
True Accord LLC, Balance is $265. (2 years old) Just wondering if i could chop that in half or at least take a portion off. I also have one (Convergent i think) that is $269. (6 months old) And Knight Bureau in SLC at $600 (6 months old)... Any chance i could cut down on any of these?
I would be shooting for 50% off or more on all of those if it were me.
Remember to get any settlement in writing before you pay.
Michael, i have few account from navy federal but the last paid statement was Oct, 2010. what should i do with this account. it's still on my report. will it get off my report soon? i am from new jersey. please reply. thanks for the help
Check out my article about debts dropping off your credit reports from age. It sounds like you are real close to that happening.
You were never sued for these debts, right?
My student loans have been passed down to Conserve collection, doesn't this forfeit contract between gov and I? I'm also just finding out they have taken my taxes in April and applied it to my loans.
I am not sure how to interpret your forfeit question. There really is no way the government forfeits their collection rights unless you find a way to discharge federal loans in a chapter 7 bankruptcy.
We have a 4000+ debt with upstart and they sold it to velocity any advice? Are they typically hard to negotiate with or rude ? We don’t have any family resources to draw from :/ any advice ? Thanks
We can often help settle Velocity accounts for 50% or less, and still get a year or more to pay. It is a good idea to be proactive with debt buyers that place accounts with collection law firms.
More on settling with Velocity Investments here: consumerrecoverynetwork.com/resolving-debt-with-velocity-investment-llc/
Is it better to have it say "paid in full" vs "settled in full" on your credit report? I have a debit with PRA for $806. I can pay it in full. I know I can try and settle for less but if I pay it in full will it be better for my credit report?
I see people get the same mileage whether paying in full or settling. The only thing those trade line comments are good for is manual underwriting. And hardly then.
What credit or finance goal are you looking to accomplish after this?
Can a free debt relief company, such as InCharge, help people manage old debts, such as collection agency debts?
I had InCharge mediate my bills for me five years ago, when I could no longer keep up with payments.
They worked with my creditors and I paid off over an $XXXXX debt in five years. My credit card companies confirmed my debts paid, and sent me closing statement letters to confirm each complete debt payment and account closures in the end.
Would a company such as them be able to step in as a third party to third party collection agencies trying to collect what is owed to them?
Nonprofit credit counseling agencies are often not effective at dealing with older collection accounts. They are not accustomed to negotiating for less than what you owe (with a few exceptions). But call InCharge and ask what they can do for you.
You can also post the details of who you are dealing with, the balances involved, when you stopped paying originally, and I can offer feedback.
Hi Michael! Great videos. I am attempting to let 2 BofA credit cards and a Citibank (home depot) card go. I can no longer make the minimum payments on anything anymore and am on the verge of bankruptcy. I am wondering how to start this process and make the first initial call to the credit card companies to let them know. I am going to stop paying my cards starting this month and Im wondering if and what I would say to the companies. Thank you for your time!
Check out my 10 part article series that covers the first 7 months of the settlement process here: consumerrecoverynetwork.com/credit-card-debt-settlement-program/
Post additional questions and concerns once you complete that, or along the way.
If you reach a point where you want help you can reach me at 800-939-8357 ext 2.
thank you so much
Question: Would telling a collector that everything costs, on average, about twice what it did 15 years ago but my Social Security checks have not increased significantly over those same 15 years be a good excuse as to why I recently quit paying my CC bills?
It is absolutely a good reason to have missed payments on credit cards.
Unfortunately, it may not slow the collection process down.
Check out this article and video for more details about unpaid debts when you are on a fixed income: consumerrecoverynetwork.com/question/social-security-pension-state-exemption-debt-collector-garnishment/
I am trying to pay off a debt from a collection agency and I need a letter from them stating that it is being resolved so I can give it to my landlord to rent an apartment it's only about a $1586 debt will I be able to negotiate seeing as tho I don't have the money to pay a lump sum? Also the debt is 5 years old and it is from CBSA collections in Stillwater ok and I have seen nothing but bad reviews on them
All you can do is try. And I do not believe there is a single debt collection company out there without bad reviews. They are debt collectors. You can be sweet as honey and nice as pie, but the nature of the work will always be negative.
Wondering if you have advice for a specific type of debt. I enrolled in school in 2016, could not prove my residency, so I had to drop the classes. I dropped after the drop date, so the school charged me the out of state fees for the classes that I NEVER TOOK! I went to the school to get this resolved in 2016 but was run in circles and never got it resolved. Now in 2020, it is still in collections (about $5800) and I cannot get my transcripts from the school because it shows as a hold. Is there a way to get this taken off or is the only way to pay it off?
Could you have proven residency at that time?
If your existing credits are important to your future goals, I do tend to see settling the debts to be necessary in past situations like this.
I saw that you scheduled a phone consult with me tomorrow, so can talk through more details of your situation then.
What should I negotiate with American Express now transferred to nationwide credit and the debt total is 13356.00
I tend to target 40% in a situation like this, but it can vary on how late you are and collectable you look.
Do you have to wait until it goes into collections? You miss several payments? Or can you just be paying and then say let’s implement this planned negotiation prior to missing payments with the assumption you won’t be able to make future payments from a foreseeable hardship
You typically have to wait until you have missed several payments before settlement becomes an option. You do not have to wait for it to go to a collection agency, but depending on the creditors, you may want to wait that long if the deal is going to be better with the collection agency.
Hi ,
Great video! I have two accounts (JP Morgan & Customers Bank) with National Debt Relief . Chase transferred the debt to a law firm and I was given a summons. NDR then became proactive with negotiating after 4 months of silence . Unfortunately , the settlement offer came back about 80% of the original debt . I rejected the offer. A part of me feels like NDR isn’t very eager to get the lowest possible settlement . Customers just sold my debt to Velocity. I’m considering trying to negotiate the velocity debt myself and leaving Chase with NDR since I’m being sued by them. What do you suggest . What is the average settlement percentage for Velocity?
Velocity settlements, like in many negotiations, can depend on how collectable you look to them.
How prepared you are to pay a settlement, and still be ready for a Chase deal, is also a concern.
You can schedule a call with me to talk strategy here: calendly.com/debtbytes/15min
I can get into better detail of what I would do in your situation when we cover some details on the call.
Hi 👋🏼 and thanks for the tips. I have some questions and not sure what to say on a public forum. But simply, it’s been several months since I’ve been able to pay my creditors. I have MS and my health has sharply declined. I haven’t yet started the talks for payoffs yet but I need to 🤦🏻♀️ Any useful info on the creditor’s behavior towards payoffs could help. It’s kind of you to offer help in your videos. I appreciate it greatly.
I do offer a coaching strategy call where I cover each of your creditors settlement trends in detail set beside your cash flow and prioritize your accounts for you. That call covers what to, when to and how to.
You can schedule a brief call with me to see if it makes sense to set up the coaching. That short consultation call is at no cost, and you can schedule it here: calendly.com/debtbytes/15min
I do not charge for the coaching call until we complete it. That way you know the value received.