+ Reply to Thread
Results 1 to 14 of 14
  1. #1
    Holly Redd is offline Junior Member
    Join Date
    Mar 2007
    Posts
    6

    Debt Negotiating Percentage

    What is the name of your state? FL

    Is there a typical debt negotiating percentage most collection agencies accept as a lump sum settlement?
  2. #2
    seniorjudge is offline Senior Member
    Join Date
    Aug 2005
    Location
    St. Odo of Cluny Parish
    Posts
    29,533
    Quote Originally Posted by Holly Redd View Post
    What is the name of your state? FL

    Is there a typical debt negotiating percentage most collection agencies accept as a lump sum settlement?
    Stay away from debt collection agencies.

    They are scams.

    Negotiate directly with the credit card company (or other creditor).
    There are two rules for success:

    (1) Never tell everything you know.
  3. #3
    Holly Redd is offline Junior Member
    Join Date
    Mar 2007
    Posts
    6

    Debt Negotiating Percentage

    While the debt appears to have been sold to a collection agency, you're suggesting I ignore them and go right to the credit card company, in this case Amex? I should note however, that this agency has filed suit against me with a judgement hearing in a week.
  4. #4
    Chien is offline Senior Member
    Join Date
    Oct 2005
    Posts
    1,552
    First, what do you mean by a "judgment hearing"? What is scheduled?
    Second, you've waited a little long to ask, because the price went up when they had to spend money to file.
    Third, now you're better off talking to the attorney than the CA, because he/she is going to have to carry the work from here.
    If you're going to do that, start yesterday, because calls will have to go back and forth to get authorization, if there will be a compromise.
    The answer to your question will be "the whole thing, including costs and interest", so don't look for a set percentage. Figure out what you can realistically offer forthwith and follow-up. Then figure out the reasons that should be attractive to them without the necessity of spending more money to enforce a judgment. The justifications are innumerable and you haven't given enough information to work with in the time available.
    I've been away from this forum for about a year, but DebtCollector used to have a very nice by-the-numbers checklist for handling negotiations, if you can get that far. See if you can find it using the "search" function and have it in front of you, if you get a chance to try.
    The amount involved will get much bigger, if it goes through judgment.
  5. #5
    Holly Redd is offline Junior Member
    Join Date
    Mar 2007
    Posts
    6

    Negotiation Percentage

    Thanks Chien. To clarify, I was served a summons by law firm representing Amex. I filed an answer to their complaint. (I have been trying to stall for months waiting to sell my house to pay off creditors.) Following my answer, I was notified of a hearing where I am expecting a judgement will be rendered against me for the amount.

    I have finally sold my house, and am ready to negotiate with two other creditors as well. Looks like 45% discount isn't out of the question, I wondered what to expect with law firm collection but they are playing hard ball offering only 12% discount. Given hearing is a week away, I guess I'm gonna bite this one. Not having any familiarity with judgements, I posted here, wondering if I had any negotiating room other than offering a lump sum now. I did find those negotiating points, thanks! (And thanks to "debtcollector".)
  6. #6
    seniorjudge is offline Senior Member
    Join Date
    Aug 2005
    Location
    St. Odo of Cluny Parish
    Posts
    29,533
    Talk to the people who own the debt.
    There are two rules for success:

    (1) Never tell everything you know.
  7. #7
    Holly Redd is offline Junior Member
    Join Date
    Mar 2007
    Posts
    6

    Negotiation Percentage

    thanks Seniorjudge. The law firm is the collection agency. They of course are playing hardball with an impeding hearing. Other two credit card collection agencies are offering 40% discount to the debts. Amex, with the hearing, is offering 12%. Just looking for suggestions to a strategy that might garner greater discount - either "hey, I only have so much money, I can't make everybody happy, but they could sue me too." Hell, I'm just trying to get into the head of the dude who's playing hardball.
  8. #8
    Chien is offline Senior Member
    Join Date
    Oct 2005
    Posts
    1,552
    Try telling them the pie is only so big and can only be split so many ways. You've sold your only real property asset just to be able to clear all the debts (that tells them that they'll have to look for a bank account or garnish wages, both of which are more risky, protracted and subject to possible exemptions, than taking a lump sum - plus there are new expense for them). Make sure they know you're paying off other creditors as well. Encourage them to check, if they haven't already. Make sure they know there are other creditors who are going to be competing with them, if a complete deal isn't done. Let them know that the others offered a 40% discount to get the deal done, and you were relying on Amex to do the same, if everybody was going to get paid. Tell them "maybe" you could do (pick a number - 70-75% - you'd go up, if they would come down), but you'd have to get family/personal loans to do it, and that won't happen if you can't settle and a judgment is taken. You need a quick decision, so that you have time to try to go back and get the differential.
    Now you're playing poker up to the last minute, but the alternative is to just give them what they want. None of us can guarantee who blinks first.
  9. #9
    debtcollector` is offline Senior Member
    Join Date
    Jul 2005
    Location
    Lost in a library
    Posts
    5,748
    Don't play chicken with Amex. They'll run over you in a heart beat.

    The negotiation list Chien referenced can be found at helpwithcollections.com/articles.php

    DC
  10. #10
    Chien is offline Senior Member
    Join Date
    Oct 2005
    Posts
    1,552
    I stand corrected.
    DC is far more familar with the retail side. I'd listen to the voice of experience.
  11. #11
    Ladynred is offline Senior Member
    Join Date
    Feb 2002
    Location
    Nashville,TN
    Posts
    15,711
    I have to agree with DC, AMEX does not 'deal'. They do play the meanest form of hardball so your attempts at negotiation are not likely to work with them. The only thing that stops them cold is bankruptcy - and even then they will fight tooth and nail.
  12. #12
    Holly Redd is offline Junior Member
    Join Date
    Mar 2007
    Posts
    6

    Settlement

    I appreciate the comments. Finally with funds, have made a settlement agreement with Amex counsel at the 11th hour. What should one expect on credit report as a result? Settlement letter from counsel says, "account will continue to reflect the remaining balance..." Is this reflection on my credit report as well?
  13. #13
    debtcollector` is offline Senior Member
    Join Date
    Jul 2005
    Location
    Lost in a library
    Posts
    5,748
    Quote Originally Posted by Holly Redd View Post
    I appreciate the comments. Finally with funds, have made a settlement agreement with Amex counsel at the 11th hour. What should one expect on credit report as a result? Settlement letter from counsel says, "account will continue to reflect the remaining balance..." Is this reflection on my credit report as well?
    That would mean you didn't settle the account. That means he accepted what you had and will come back for more later.
  14. #14
    Holly Redd is offline Junior Member
    Join Date
    Mar 2007
    Posts
    6

    Settlement

    I should have included the whole sentence which reads, "the account will continue to reflect the remaining blance which would need to be paid before American Express processes any further applications that you may choose to submit for American Express accounts."

    Beyond this, I understand the law firm cannot do anything else but state "settlement" for which it is Amex's responsibility to state to the credit reporting agencies.

    Any other ramifications I should know about having "settlement" on my report other than the fact it's clear I didn't pay the full amount?

Similar Threads

  1. negotiating payoff for NON-DELINQUENT debt
    By svsv in forum Banking & Credit Cards
    Replies: 3
    Last Post: 04-22-2010, 07:30 PM
  2. Repairing credit + negotiating debt
    By GhostofXmas in forum Debt Collections
    Replies: 0
    Last Post: 01-06-2009, 10:43 AM
  3. Negotiating settlement of a debt
    By SamiAnna in forum Debt Collections
    Replies: 6
    Last Post: 02-17-2006, 12:20 PM
  4. Negotiating
    By Michael325 in forum Landlord / Tenant Issues
    Replies: 1
    Last Post: 05-01-2004, 10:47 AM
  5. Negotiating Repayment of Debt or Bankruptcy?
    By cdo4 in forum Consumer Bankruptcy
    Replies: 1
    Last Post: 11-10-2000, 08:40 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

© 1995-2012 Advice Company, All Rights Reserved

FreeAdvice® has been providing millions of consumers with outstanding advice, free, since 1995. While not a substitute for personal advice from a licensed professional, it is available AS IS, subject to our Disclaimer and Terms & Conditions Of Use.