How to negotiate a settlement

[debtcollector`]

Since I have refered three or four people to this in the last 24 hours. Here it is again.

How to negotiate a settlement:

1. Plan your call and set your goals before calling.
If you want to settle for 50% start negotiating at 25%.

2. Make no solid agreement on your first phone call.

3. Make sure you have the money to pay an agreed settlement immediately

4. Sit at a table with a notepad. Take notes of everything being said. (The collector is I promise you)

5. When you are talking to the collector, remember that the money you will be paying this is with is being given to you by your wife's uncle or something like that -- he has offered you $x - with x being your starting point in the negotiations.

6. Remember X is all the money you have to work with on this call. If the negotiation goes higher and you hit your goal tell them you have to have it in writing so you can bring it to your uncle and ask for more.

7. Make no promise to pay without the written settlement agreement. Don't pay or make a promise to pay on the first call.

8. Remember you are dealing with trained negotiators. If the collector becomes excited or you feel is getting abusive simply say, "Obviously we both want to take care of this, but I feel you and I aren't communicating well. May please speak with your supervisor?

9. It will take more than one call to do this right. You will need to take copious notes and make sure you get the names of who you talk to.

10. If you are concerned that you will not be able to handle the negotiation yourself, there are professional negotiators, but that is a pricey alternative and the possibility of the settlement going your way when you are paying for representation is much lower.

DC

[Ladynred]

8. Remember you are dealing with trained negotiators. If the collector becomes excited or you feel is getting abusive simply say, "Obviously we both want to take care of this, but I feel you and I aren't communicating well. May please speak with your supervisor?

What are the chances that you'll actually GET a Supervisor ?? Most of the time these guys just hand the phone off to the person at the next desk who then pretends to be a 'supervisor'.

I would only add that if it starts to get out of hand.. stay calm as DC says and if they refuse to get a supervisor then just tell them you'll call back later when things have calmed down and then hang up.

[Chien]

To DC - Thanks for re-posting. I've referred others to this on this and other forums but, until now, have had to go back and find the thread.

To LNR - I'm always requiring confirmation in writing (just as you advise). If that means me drafting and submitting myself, so be it. But the party who signs is going to put signature and print/type title and authority. If that later turns out to be BS, it's not going to be the client's problem, it's going to be theirs (and I'll make d*** sure it is).

[justalayman]

That is a fantastic guide. I guess that link you put up before might really be true.


Is there some way to make this a continual post so the folks that come here will see it easily?

[GVSU2003]

DC, SJ and Chien.

I spoke with the attorney's office for the CCD company this morning. They want me to put my initial offer in writing, include my personal situation and then sign it and fax it to them. I was ok up until they said that I have to sign it. Should I be concerned? Also, the amount that the law office said that I owed is different (less) than what the summons I recieved states. Why would that be?

Thank you for everyone's advuce, I really appreciate it.

[debtcollector`]

Originally Posted by GVSU2003

DC, SJ and Chien.

I spoke with the attorney's office for the CCD company this morning. They want me to put my initial offer in writing, include my personal situation and then sign it and fax it to them. I was ok up until they said that I have to sign it. Should I be concerned? Also, the amount that the law office said that I owed is different (less) than what the summons I recieved states. Why would that be?

Thank you for everyone's advuce, I really appreciate it.

I wouldn't worry about signing the offer. As for the amount being different than the summons, the summons, I assume, contemplates charges that can be avoided be handing this before court.

DC

[draygnmage]

That is slightly odd that the sumons has a balance HIGHER than what you were quoted on the phone. Generally, a summons will list the balance that was assigned to the firm and then somewhere else will mention additional interest and court costs. Reason being that if it goes to court, any decent attorney will try to get statutory interest as part of the judgment so they can keep accruing interest. The summons should have a breakdown of the balance on it somewhere. Call them back and ask them to do the same so you can compare.

Signing the offer isn't anything to worry about. They probably just want to make it an official offer.

[Chien]

Sorry that GVSU2003's post hijacked this valuable resource.

It's a duplicate. It's also in the original thread in the Banking and Credit Cards forum, where I responded to it as well.

DC - I wish they'd pin this in a sidebar. I'm always looking it up for posters.