Bank balance sent to collections

[mollysue]

What is the name of your state (only U.S. law)? Georgia

I had a bank account get closed that I think had a negative balance of about $300. I got a letter and calls from a collection agency that said I owed $995.10. They called today and on my friends advice I asked to settle it and offered $500. The lady said she took it to the supervisor and the lowest they could settle for was $845.84. Which I guess is 15% less. I spoke with the supervisor and offered $600.00 if I could settle today and he wanted to break up payments. While I was on the phone I was looking on google and saw where it said they buy these debts for pennies on the dollar and you should only offer 25% of it. oops. They asked me a bunch of questions about how much I made, if I rent or own my home, where I work, and I gave it to them.... I finally ended with "let me see what I can do and I'll get back to you." I want to settle this right away and don't want them contacting my work or whatever if they would do that. Do I just have to suck it up and pay the $845.84? How do I settle for lower and what should I do about my credit rating?

[Antigone*of*Greece]

Originally Posted by mollysue

What is the name of your state (only U.S. law)? Georgia

I had a bank account get closed that I think had a negative balance of about $300. I got a letter and calls from a collection agency that said I owed $995.10. They called today and on my friends advice I asked to settle it and offered $500. The lady said she took it to the supervisor and the lowest they could settle for was $845.84. Which I guess is 15% less. I spoke with the supervisor and offered $600.00 if I could settle today and he wanted to break up payments. While I was on the phone I was looking on google and saw where it said they buy these debts for pennies on the dollar and you should only offer 25% of it. oops. They asked me a bunch of questions about how much I made, if I rent or own my home, where I work, and I gave it to them.... I finally ended with "let me see what I can do and I'll get back to you." I want to settle this right away and don't want them contacting my work or whatever if they would do that. Do I just have to suck it up and pay the $845.84? How do I settle for lower and what should I do about my credit rating?

The CA does not have to settle. They can take you to court for the full amount plus whatever costs they incur. Your best bet is to take their settlement offer.

The payment/settlement of this debt will, in time, help your credit rating. You might even negotiate with them that if you settle right now for the full $845.84 that they remove the negative line from your history. If they agree to that, get it in writing and check your credit about 90 days later.

take care, ana

[dirtyscoundrel]

Much like my wife, you acted first out of impulse and then decided you should have been informed first.

A creditor will settle for whatever amount they feel maximizes their return. In other words, they can sue you and then collect whatever they can take from you or they can get you to pay voluntarily. Going to court is going to cost money and the amount owed isn't that big, so spending $500 on legal costs to recover $1000 is hardly in their best interest. In some cases, they may not be able to recover the $1000, because there's nothing they can put their hands on.

Unfortunately, you have already told them you have at least $600 in your pocket, what assets you have, how much you make, where you keep your money, etc. and they know you fold easily under pressure. The only reason they're offering you a settlement is because they don't like talking to you on the phone and they're making way more than they expected to.

It's too late to play hardball with them, because they just won't buy it. But, you can use a female tactic that works wonderfully (works best on guys though): nag, nag, nag, until they give you whatever you want just to shut you up. Call the superviser (hopefully he's a guy) many times a day to ask questions you've already asked before. Call him right before lunch time or right before his shutting down his computer to go home. Ask him to send you things in writting just to waste more of his time (and to figure out how they justify $655 on a $300 debt). Always make it clear you want to pay so that he can't threaten you in any way. When he least expects it, start crying for no reason and don't let him hang up on you. When he's ready to kill you, offer him $200 and accept whatever his counteroffer is.

[debtcollector`]

Actually a CA can only settle for what percentage the owner of the debt authorizes them to settle at. Some creditors authorize 50 percent; some only authorize 10 percent.

If you come at me with an offer of 25 percent, you had better be able to back that pay stubs for the last year, bank statements and justification. If you can't make a case as to why I should take such a low ball amount, I'll note your account as being ineligible for any settlement.

DC

PS: OP you should take this new guy dirtyscoundrel with a grain of salt. He doesn't have a clue.

[applecruncher]

Originally Posted by dirtyscoundrel

It's too late to play hardball with them, because they just won't buy it. But, you can use a female tactic that works wonderfully (works best on guys though): nag, nag, nag, until they give you whatever you want just to shut you up. Call the superviser (hopefully he's a guy) many times a day to ask questions you've already asked before. Call him right before lunch time or right before his shutting down his computer to go home. Ask him to send you things in writting just to waste more of his time (and to figure out how they justify $655 on a $300 debt). Always make it clear you want to pay so that he can't threaten you in any way. When he least expects it, start crying for no reason and don't let him hang up on you. When he's ready to kill you, offer him $200 and accept whatever his counteroffer is.

Dirtyscoundrel, I see that you're new to the forum. I also see that you’ve been bouncing around giving advice that is foolish and incorrect, at best. And now you’re making stupid, blatantly sexist comments.

Thus far, you’re not doing so well.

[Antigone*of*Greece]

Originally Posted by applecruncher

Dirtyscoundrel, I see that you're new to the forum. I also see that you’ve been bouncing around giving advice that is foolish and incorrect, at best. And now you’re making stupid, blatantly sexist comments.

Thus far, you’re not doing so well.

I thought it was just me this dirty guy was irritating.