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what happens if you pay towards a debt and skip the collection agency ?

Discussion in 'The Lounge' started by R72K5, May 25, 2004.

  1. R72K5

    R72K5 Banned

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    Location:
    central IL
    if you have a delinquent account, well a couple of them, and have not been able to pay anything towards either for months and have collection agencies calling and sending mail wantign you to contact them to talk about it,
    what should you do once you found some work and want to get payments sent ? send directly to the debtors or talk to the agencies and maybe hope that payments and percentages and such can get reduced somehow ?
    i could do like only 100 a week towards one of the two debts, and at that rate it would take freaking 23 payments to rid of one and 13 for the other, or possibly a few more. i really highly doubt this work will last anywhere near that long, but ya never know i guess.

    lemme know if you need to know more
    i appreciate anything thanks
     
  2. fjleiter

    fjleiter 1/2 ton status

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    NEVER EVER (let me repeat) NEVER!!!!!!!!!!!!!

    Never pay a collection agency, make arrangements with the original debtor. Collectors are only there to make a profit, they can't do anything (can't take marks off your credit report etc...) They are a paid middleman.

    If possible, call the original debtor, explain the circumstances and they will usually work with you on it. Sometimes they will reduce what you owe. Some will even completely remove negative info from your Credit report making it look like it never happened (thus saving your credit)

    See these two sites for more info...

    Bud Hibbs Credit help

    Creditmania

    One thing ALL of them agree on is to NOT deal with the collectors and to send them a cease and desist letter explaining you will ONLY deal with the original debtor.
    (this way the collection agencies aren't allowed to call you anymore)

    [ QUOTE ]
    if you have a delinquent account, well a couple of them, and have not been able to pay anything towards either for months and have collection agencies calling and sending mail wantign you to contact them to talk about it,
    what should you do once you found some work and want to get payments sent ? send directly to the debtors or talk to the agencies and maybe hope that payments and percentages and such can get reduced somehow ?

    lemme know if you need to know more
    thanks for anything

    [/ QUOTE ]
     
  3. djsblaze

    djsblaze 1/2 ton status

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    Some collection agencies actually "buy" the debt from the original creditor. In such cases, going to the original creditor does not work, as they no longer own the debt. But, I still think going to the original creditor is the best place to start. If they have not "factored" or "sold" the debt, they will want to take care of you.
     
  4. gjk5

    gjk5 3/4 ton status

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    [ QUOTE ]
    Some collection agencies actually "buy" the debt from the original creditor. In such cases, going to the original creditor does not work, as they no longer own the debt. But, I still think going to the original creditor is the best place to start. If they have not "factored" or "sold" the debt, they will want to take care of you.

    [/ QUOTE ]

    Absolutely right. It depends on your state laws, but in Colorado 95% of these debts have actually beeen purchased by the collection agency and the original creditor cannot even discuss it with you.

    At any rate, no matter who you are paying, if you have to pay in installments make them put the agreement in writing with you, including the rate at which interest is accruing. They WILL screw you if you give them the opportunity.
     

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