when settling with a debt collector by phone payment if i have a lawyer

A debt settlement lawyer can be of assistance when approaching the process of debt settlement. For instance, engaging the services of a debt settlement lawyer can come in handy when creditors and collection agencies persist with aggravating phone calls.

Full Answer

Should I talk to a debt collector on the phone?

If you're contacted by telephone, consider hanging up without talking to the collector—at least until you get your ducks in a row by learning about your rights, finding out if the debt is truly yours, and learning whether the statute of limitations has expired.

How to settle with a debt collector?

Here’s how to settle with a debt collector. The first thing you should know is that you can negotiate. Debt settlement is one option you have, which means offering to pay a portion of your debt in return for the creditor or debt collector forgiving the rest.

How do you end a call with a debt collector?

There's an awkward silence. Then the voice on the other end asks for you -- with the most creative pronunciation of your name that you've heard to date. With your finger hovering over the "end call" button, you suddenly decide now is as good a time as any to deal with that pesky debt collector you've been avoiding.

What is a reasonable offer to settle a debt?

When you're negotiating with a creditor, try to settle your debt for 50% or less, which is a realistic goal based on creditors' history with debt settlement. If you owe $3,000, shoot for a settlement of up to $1,500.

What should I offer a debt collector for a settlement?

Start by offering cents on every dollar you owe, say around 20 to 25 cents, then 50 cents on every dollar, then 75. The debt collector may still demand to collect the full amount that you owe, but in some cases they may also be willing to take a slightly lower amount that you propose. A payment plan.

How do I respond to a collection letter from a lawyer?

Four Steps to Take if You Received a Debt Collection Letter From a LawyerCarefully Review the Letter to Determine the Claim. ... Consider Sending a Debt Validation Request. ... Gather and Organize All Relevant Financial Documents and Records. ... Be Proactive: Debt Does Not Go Away on its Own.

How do you negotiate a debt settlement after being served?

The best way to settle a debt lawsuit is first to file a response, then contact the otherside and make an offer. You can use SoloSuit to respond in just 15 minutes. This gives you the leverage you need to settle. Frequently, people get sued out of the blue by debt collectors.

What is a reasonable full and final settlement offer?

It depends on what you can afford, but you should offer equal amounts to each creditor as a full and final settlement. For example, if the lump sum you have is 75% of your total debt, you should offer each creditor 75% of the amount you owe them.

Is it better to settle a debt or pay in full?

It is always better to pay off your debt in full if possible. While settling an account won't damage your credit as much as not paying at all, a status of "settled" on your credit report is still considered negative.

How do I write a hardship letter to a debt collector?

Tips for Writing a Hardship LetterKeep it original. ... Be honest. ... Keep it concise. ... Don't cast blame or shirk responsibility. ... Don't use jargon or fancy words. ... Keep your objectives in mind. ... Provide the creditor an action plan. ... Talk to a Financial Couch.

How do I respond to a collecting payment letter?

I am responding to your contact about collecting a debt. You contacted me by [phone/mail], on [date] and identified the debt as [any information they gave you about the debt]. I do not have any responsibility for the debt you're trying to collect.

What do you say when disputing a collection?

The debt dispute letter should include your personal identifying information; verification of the amount of debt owed; the name of the creditor for the debt; and a request the debt not be reported to credit reporting agencies until the matter is resolved or have it removed from the report, if it already has been ...

Will debt collectors settle for half?

Some want 75%–80% of what you owe. Others will take 50%, while others might settle for one-third or less. Proposing a lump-sum settlement is generally the best option—and the one most collectors will readily agree to—if you can afford it.

What happens if a debt collector won't negotiate?

Speak to the Original Creditor Inform the original creditor that you want to find a way to settle the debt, and ask if they're willing to negotiate. The creditor may choose to accept your initial offer, negotiate a new amount, or refuse outright and refer you back to the collection agency.

What are the cons of debt settlement?

Disadvantages of Debt SettlementDebt Settlement Fees. Many debt settlement providers charge high fees, sometimes $500-$3,000, or more. ... Debt Settlement Impact on Credit Score. ... Holding Funds. ... Debt Settlement Tax Implications. ... Creditors Could Refuse to Negotiate Your Debt. ... You May End Up with More Debt Than You Started.

How to settle a debt with a debt collector?

Here’s how to settle with a debt collector. The first thing you should know is that you can negotiate. Debt settlement is one option you have, which means offering to pay a portion of your debt in return for the creditor or debt collector forgiving the rest. You might either pay it back in one lump sum or in installments.

What time can debt collectors call you?

Debt collectors can only call you between 8 a.m. and 9 p.m. You can send a letter asking debt collectors to stop contacting you. The Consumer Financial Protection Bureau has a sample letter you can download. But be careful using this type of letter if there is still time for the collector to sue you in your state.

What to do if you hire a debt settlement company?

If you hire a debt settlement company, they should handle the back-and-forth negotiations with a debt collector. But if not, you’ll be in charge. Before you make a settlement offer, you’ll need to figure out how much you can afford to pay and whether you can pay in installments or as a lump sum.

How long does a settlement last?

One big issue with many settlement companies is that their programs can last as long as 36 to 48 months. During that time, they ask you to stop paying your creditors to save up money for a lump sum settlement payment. But in the meantime, you keep racking up interest charges and fees.

How long can a debt collector sue you?

There is a statute of limitations ( it varies by state and type of debt) for how long a debt collector has to sue you. Most statutes are three to six years. If the delinquent debt is past the statute of limitations in your state, it’s considered expired. But admitting that the debt is yours, or paying a portion of it, ...

How does resolve help?

How Resolve can help. When negotiating with debt collectors, it can be tough to make sure you’re getting the best deal for yourself. That’s where Resolve can help. Our goal is to provide you with affordable and ethical expertise to get you back on solid financial ground.

How long does a debt settlement stay on your credit report?

Settling a debt doesn’t mean it disappears from your credit report. A settled debt can stay on your credit report for seven years. That’s why you should keep a copy of your settlement agreement and proof of payment in case someone else comes calling one day.

How to contact a debt collector?

Any debt collector who contacts you to collect a debt must give you certain information when it first contacts you, or in writing within 5 days after contacting you, including: 1 The name of the creditor 2 The amount owed 3 That you can dispute the debt or request the name and address of the original creditor, if different from the current creditor.

How long does it take for a debt collector to contact you?

Any debt collector who contacts you to collect a debt must give you certain information when it first contacts you, or in writing within 5 days after contacting you, including: The name of the creditor. The amount owed. That you can dispute the debt or request the name and address of the original creditor, if different from the current creditor.

What happens if the statute of limitations is passed?

If the statute of limitations has passed, then your defense to the lawsuit could stop the creditor or debt collector from obtaining a judgment. You may want to find an attorney in your state to ask about the statute of limitations on your debt. Low income consumers may qualify for free legal help.

How long does a debt have to be paid before it can be sued?

The statute of limitations is the period when you can be sued. Most statutes of limitations fall in the three to six years range, although in some jurisdictions they may extend for longer.

What to do if you agree to a settlement?

If you agree to a repayment or settlement plan, record the plan and the debt collector’s promises. Those promises may include stopping collection efforts and ending or forgiving the debt once you have completed these payments. Get it in writing before you make a payment.

What to do if you don't recognize the creditor?

If you don’t recognize the name of the creditor, you can ask what the original debt was for (credit card, mortgage foreclosure deficiency, etc.) and request the name of the original creditor. After you receive the debt collector’s response, compare it to your own records.

When will debt collectors have to give notice of eviction moratorium?

All debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). This can include lawyers who collect rent for landlords. Starting on May 3, 2021, a debt collector may be required to give you notice about the federal CDC eviction moratorium.

What happens after a debt settlement is paid?

After completing successful negotiations, a debt settlement lawyer will review the entire settlement agreement to make certain that the debtor is fully protected once the settlement has been paid and that creditors will have no recourse to pursue additional collections later.

Is debt settlement good for credit card debt?

If you are already delinquent on one or more credit card accounts, debt settlement may prove to be an excellent option, as it can result in creditors accepting lower balance payoffs.

How Do I Settle a Debt with a Debt Collector?

If you are reading this blog post then there is a high likelihood that you are attempting to settle a debt with a debt collector. The next thing you may be trying to figure out is whether it makes sense to hire a debt settlement attorney or company to negotiate a settlement on your behalf.

What Kind of Debt Do you have?

The first step is to identify the types of debt (s) you have and where they are at in the debt collection process in order to determine how to best settle a debt with a debt collector. Typically for a creditor to accept a settlement for significantly less than the full balance your account must be charged off or at least 6 months delinquent.

Should I Hire a Debt Settlement Lawyer?

Whether you should hire a debt settlement lawyer will depend on your specific situation. If you owe a small balance debt or one of the types of debt that has a small chance to be negotiated for less than the full balance it may not be worthwhile to hire a debt settlement lawyer unless you simply do not want to deal with a specific creditor.

Hi, Richard here

Book a time on my calendar to receive a calendar invite along the option to schedule a Phone, Office or Zoom consultation.

What can go wrong when paying a debt collector?

The reasons you want to protect yourself when you are paying debt collectors have changed significantly in the period of time I have been helping people to resolve debts. In the 90’s I viewed protecting your personal bank account and other details as more critical, but because less was being done to hem in bad practices of the day.

What to Avoid when Sending a Payment to a Debt Collector

I would not send payment without a written outline in hand that clearly spells out what it is that you and the debt collector have agreed to. There are instances with some debt collectors where I would refuse to pay anything without the settlement agreement like you have in hand. But there are other times where I will encourage making the payment.

What to do when a debt collector calls?

More importantly, by knowing what to do and say when a debt collector calls, you can avoid making a mistake that could put you at legal or financial risk. First, you should decide if you want to talk to the collector. If so, be sure to keep a record of what you and the collector discuss.

How do debt collectors communicate with you?

The Consumer Financial Protection Bureau issued a final rule amending Regulation F, which implements the FDCPA, to clarify how collectors may use texts, emails, and use other forms of digital communication, like social media, to contact you.

What does the FDCPA rule cover?

The rule explains how the FDCPA's protections apply to digital communications and gives consumers the ability to unsubscribe from debt collectors' electronic messages. It also describes how collectors may use voicemails and limits how often debt collectors can call you.

What happens if a debt collector crosses the line?

If the debt that the collector is calling about is several years old, find out what your state's statute of limitations is for filing a lawsuit to collect the debt.

What to do if you can't afford to pay a debt?

But if you decide not to talk to the collector, send a written request that the collector cease communication with you.

How to deal with aggressive debt collectors?

If you need help dealing with an aggressive debt collector, figuring out what option is best for handling your debts, negotiating a settlement, or responding to a lawsuit for nonpayment of a debt, consider consulting with a lawyer. Once you've hired a lawyer, under the FDCPA, a collector must talk to your attorney only—not you—unless you give permission to contact you or your lawyer doesn't respond to the collection agency's communications.

What is a collection log?

A collections log is a written record that you make of the date and time that a collector calls, the person you speak with, and what the collector says to you. Your log doesn't have to be anything fancy—writing it on a notepad or spare piece of paper is fine, or keeping a log using your computer or phone works too. A collections log will help you straighten out who is calling you from where, and what debts each collector is calling about. It will also help you keep track of how often a particular collector calls and document inconsistencies in what collectors say to you from one call to the next.

What happens if you default on a collection?

If all collection activity fails and you continue to default, a debt collection lawsuit can be filed against you. Unpaid debt doesn’t just go away. It continues to be reported on your credit report, harming your credit score, and leaving you at risk of potentially being sued.

What happens if you settle debt?

This negative reporting will likely decrease your credit score, making future borrowing more costly in the form of higher interest rates and annual fees on credit cards.

How long can a creditor file a lawsuit against you?

The length of the statute of limitations varies by state and typically falls between 3 – 10 years from the date of the first defaulted payment or the date of the last payment received, depending on the approach taken by each state.

How to pay debt in full?

You can always pay the debt in full with a lump sum payment. You can also pay the debt in full over time by entering into a payment plan with the creditor, if your creditor is amenable to this solution. This is a possible resolution even after a lawsuit has been filed but has not yet concluded. Your creditor wants to resolve the suit so they can avoid racking up legal fees, court costs, and other legal costs when there is a risk that you could file for bankruptcy and they would potentially receive nothing.

What happens if you miss a payment?

Chances are that after the months of missed payments stack up, the original creditor will cut its losses and sell the debt to a debt collection agency. Your account will read as “charged-off” on your credit report, which may decrease your credit score.

What happens if you miss a payment on a credit card?

For example, as soon as you miss a credit card payment, the credit card company will begin calling the phone number on file.

What does it feel like to be served with a lawsuit?

Hearing the words “you’ve been served” is a dreaded thing. It can feel overwhelming to be served with a lawsuit, especially if you’re being sued for unpaid debts. A lot of people face debt problems at some point in their lives. If you’re facing debt-related challenges, you’re not alone and you do have options.

What is a partial payment on a collection?

2. A partial payment -- before a settlement is reached on the full amount. Each state has regulations on debt expiration.

What happens if you are sued for an expired debt?

It's important to note that if you are sued for repayment of an expired debt and you don't show up to defend yourself, you may still be held liable. With a court order in hand, the lender may even be able to garnish your wages. 3. Bank account information.

Do you have to provide information to a debt collector?

You are not required to provide this information. The debt collector has already found a way to reach you this time -- and will undoubtedly manage if they need to reach you again. A good rule of thumb is not to provide any information to them that the debt collector wouldn't give you in return over the phone.

Can a debt collector pursue a debt after the statute of limitations has expired?

Each state has regulations on debt expiration. Even after the statute of limitations has expired, some collectors may still continue to pursue a debt. If they can convince you to make a partial payment, the expiry period starts over, and they have more time to chase down the balance due.

Can you share a name with someone who only pays bills under duress?

You may have impeccable credit, but you may also share a name with someone who only pays bills under duress. You cannot assume the debt collector did its due diligence. Some do, but to others, any Smith who pays the bill is the right one. This is why authenticating your debt is imperative. Now here's a fun fact.

Do collection agencies keep all the debt they collect?

After all, collection agencies get to keep some or all of the debt they collect, and their employees often earn a commission, so the incentive to withdraw more than the agreed-upon amount is high. You may have the time, energy, and/or legal assistance to sort everything out after the fact.