My name is Rose Jones business women and entrepreneur with a back ground in mortgages.
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'Before you either write a check or use your credit card to pay you need to know how to do it. Ok so now you have been contacted by either the creditor or a collection company, ** note** there are two different ways of handling this.
If its the creditor and its within the statue of limitations you can either settle it for less them or pay it in full. Now the original credit can work that out as they still hold the debt and a lot of times they have their own collection department within the 120 to try and collect. I love it when I can deal directly with them as 95% of the time you can get a deletion letter as the are the holder of the debt. Your going to make a deal with them asking them to delete it from the account if you pay it either way, they can as they are the ones who put in on the file to the bureaus anyway.
Past the 120 days its most likely in the hand of a collection company, they may have been calling or have written you. You have some choices if you have not previously spoken to them and given your information to them which would start the debt from that point. Now they can hold the debt as well, each state has a statue of limitation any where from 2-5 yrs, they really start calling when it gets to that point.
You can settle with them if your trying to move on and how desperate you are to clean up your credit, how large the debt is and your funds. So you 1st need to check your credit report gather all your information on that debt, is it yours? keep in mind it needs to be proven to be and how much time do you have to fight it. You can answer the call and if you do never give personal information, you name is fine you do not need to give them middle names we are not helping them prove this date. They by-law have to say, "This is a call from a debt collector", at that point listen, they will go into asking for your social Security number, ** Do not give it** they might ask for your full name, they should have it so ask them what they have not giving any middle names, let them at that point know that your not understanding why your receiving this call and if they need to please contact you by mail, letter form. If they ask for the address let them know since your calling this number you should have it, bid them a great day and hang up.
If they write you, write them back certified mail requesting proof of the account they are showing, you want when the account was opened, any late payments they say you had when it was closed and the original creditor and contract with a wet signature. 90% of the time they can't supply it because they bought the account and they buy them in batches, I have seen most debts are way out of the statue of limitation and they go through old files which I call ZOMBIE DEBT and try to trick you into reviving the debt by speaking to them.
**Note by law a collection does not have to send you a PAID DELETION letter as it must come from the original creditor, problem is they sold the debt so the collection company now who owns it. I have found that they will depending on how you paid it post it on the bureau as "paid settled for less them" or " paid as agreed". Paid as agreed to who, couldn't be to the original debtor as they show on the report lates and discharged, and by law once again this collection company can't change the reporting.
So Now you need to or want to settle, Start low, never start high as you can always move up a little but never backwards, know how far you are willing to go and stick to your guns. Ask them to send you all the information's to your e-mail before you send any money. ** Note you have no credit card** so your not going to be paying over the phone, never ever let them into your person bank account or pay with a card as its your word on payment in full against theirs. Tell them I will send a certified check, work that out as far as them receiving it and don't forget to write in the memo PAID IN FULL.
** Take a picture of the front of the check and back, the envelope and certified mailing receipt for your records drop it in the mail. Good luck to you all and if you have any questions any questions call me 702 325-3861