Negotiating with Collection agency

Submitted by Anonymous (not verified) on Wed, 10/28/2009 - 03:59

I will be calling the collection agency in a few days, I am preparing and doing my homework. Here is what I have so far.

Background: Owned an investment house, foreclosed in a recourse state.
1st lien took house, second lien sold their note to a debt collection agency.
I owe approximately 90k.
Agency has had the note since Jun and has made no attempt to reach out to me.
I have sent them letters stating I would like to settle for an amount but haven't heard back.
I called earlier and they are ready to negotiate when I am.

So, please help me formulate a strategy or a plan of attack.

My thoughts are I will tape the call and I will take notes. I will NOT TELL THEM WHERE I WORK OR WHERE I BANK. I will do my best to avoid a payment plan.

If it works, I will ask that they list my account be listed as paid in full rather than paid in settlement. I will get proof in writing before I sign anything.

Questions:
What should I expect on the call? Will they believe I have little to offer or will they demand proof?
Will they ask for salary, financial statements or job info?
If they ask for this what do I tell them?
What can I do to limit this exposure?

Anything else I need to consider?

Please let me know what you think. Let me know if this thread already exists.

Hi Steven,

You said the CA is ready to negotiate right? If it is so, then you can definitely settle the debt with the CA. Before settling the debt, calculate the amount you can offer them and the amount that you can pay on a monthly basis. However, send a pay for delete letter to the CA before paying and request them to remove the negative listing from the credit report. Always send such letters through certified mail so that you have the return receipt with you.

Wed, 10/28/2009 - 06:21 Permalink

Steven,

I would also avoid giving them any type of bank account number. You will endanger yourself since they may be able to go in and take whatever amount they want. I would agree to some type of monthly payment and get that agreement in writing BEFORE making any payments to this collector. Also be sure the agreement list the amount they are planning to settle for and that after that amount is paid you will be released from any further obligation.

Wed, 10/28/2009 - 09:52 Permalink