i got all my stuff together and called the debt collectors i owe today. i tried to explain to them i am willing to pay, but i need an agreement in writing first that they will fix it on my credit report, and paperwork on the payment plan, and proof that they own the debt in the first place. the lady i talked to was really rude and kept interrupting me, would hardly let me talk.
she said they cant do that, only the original creditor can do that. she said i have to pay now and when its paid in full then they will tell the creditor and credit bureau to take it off my credit report.
i did not agree to anything or give out info. i told her i wouldnt pay unless i got papers. she said "COLLECTIONS WILL CONTINUE!!! YOU WILL NEVER BAH BLAH…" what a witch….i just hung up.

anyway what do i do now? i cant just send money to somebody with no proof it will do any good… right?

What you want to do first is pull your own credit through annualcreditreport.com. You will get 1 free report from 1 bureau, but you can write the other 2 for free ones from them. You are allowed 1 free report from each of the 3 bureaus per year.

When you get these reports you can see for youself how much damage is done. Something you need to be aware of is if something has gone to collections. It shows on your report. Then when you pay it off, it will show up as paid on your report, but keep in mind this will be the second time it will report. So your score will take a dump.

Collections companies will not nor can they have anything removed from your report. The only things that can come off are things you dispute that are reporting inaccurately, or in error. Otherwise, time will be the only thing that will have them remove themselves.

If you don't see the debt collector showing up on your credit report. Then don't talk to them. But keep in mind, that not all debt collectors or collection agencies report it right away. Also, you will find on your report everything. So if you want to be proactive then you can contact the collection agencies from the contact number provided on your report.

I agree that you just don't blindly send checks in the mail unless you know who your dealing with.

If ever something is not being paid, you must contact that creditor immediately. They are the ones that can make arrangements on how in the end it will show up on your credit report. But they can also make false promises, or tell you a half truth.

It happens all the time.

Good luck, and let me know if you have any other questions.

ok i got a call from a debt collector today. he left a semi-threatening message. he said i dont think you understand the severity of the situation…you are going to be in trouble. he gave a case number, told me to call back. and said goodbye and good luck…in a condescending manner. i just laughed lol. it was funny the pathetic threatening he was giving lol. he didnt even identify himself and left that stupid message on my answering machine.

anyway i think he was just trying to scare me. on a serious note i need to take care of this. its not a huge debt. i called back and got someone else and they made an offer. i dont know what else they will offer i said i would talk to the guy and think about it.
what steps should i take to make sure this is done right and fairly.? should i get something in writing? is he just trying to scare me or can they take me to court or something?
and i just know you trolls with ads for debt consolidation are goin to chime in…..not interested!

Hello,

Regarding debt validation in Canada:

I am a dual US/Canadian citizen. I have successfully used the US debt validation process to handle US creditors. Using Section 809b of the FDCPA as outlined at this website:

http://www.creditinfocenter.com/rebuild/debt_validation.shtml

Knowing of the US debt validation process, I looked for something similar in Canada. What I found is the Collection Agencies Act and the BPCPA. The Collection Agencies Act defines what Collection agencies in Canada are allowed to do and not do and the BPCPA enforces it. Using these two together has an effect similar to section 809b of the Fair Debt Collection Practices Act in the US. For a summary of the Canadian Collection Agencies Act:

http://www.ic.gc.ca/epic/site/oca-bc.nsf/en/ca01786e_1.html

One of the things collection agencies in Canada are not allowed to do is call you if you have sent them a request in writing by registered mail to communicate in writing only. If you accompany this request with a letter disputing the validity of their claim, it is a powerful blow to the collection agency. Collection agencies know their claim will not stand up in court if the debtor understands the fraudulent nature of fractional reserve banking. Thus if you are disputing their claim, their only way of getting you to pay is to harrass you over the phone. If they can't do that, they have no recourse, except to file a claim and hope you will ignore it, allowing them to get a default judgement against you and then garnish your wages.

However, if you have let them know that you will be disputing their claim and requesting verification of it by requiring them to produce the original loan agreement (which is impossible since it has been sold as a negotiable debt instrument on the open market by the original creditor) they seem not to pursue the matter. I recently used this approach against Federal Credit and Consulting Corp. based in Regina (I am in BC), and have received no further communication from them.

Here's some background reading which describes how collection agencies really work:

http://www.rumormillnews.com/cgi-bin/archive.cgi?read=27104

http://www.rumormillnews.com/cgi-bin/archive.cgi?read=27104

Here's reading on why the original debt is a fraud:

http://www.debt-forgiveness.us/bank-fraud-article.html

http://www.fdrs.org/money_creation.html

My debt was related to a student loan. The claim was less than $10,000 and therefore would be a small claims court issue, but it may work for greater amounts.

Here's the process I followed:

1. Upon receiving a letter from the collection agency, reply with a letter stating that you dispute the validity of their claim and require a. Proof that the original debt has been assigned to the agency, b. A complete history of the debt beginning with the original creditor and c. A copy of the original loan agreement. And, very important, request that all further communcation regarding this debt be completed in writing only (you must give them your mailing address). (Never speak to the collection agency over the phone. This is your right even though they will try to make you feel irresponsible for not answering their calls).

2. Send this letter by registered mail (ask the post office for advice of receipt or you can get it from Canada Post's website once it has been delivered and signed for) and keep copies for yourself.

3. The Collection agency will most likely keep calling you even after receiving your letter. This is because they know this is the only way they can get you to pay. As soon as you receive proof that your letter has been signed for and received, perhaps give them 10 days to stop calling, then …

4. If/when they continue to call despite your request, you file a claim with the BPCPA:

http://www.bpcpa.ca/index.php?option=com_content&task=view&id=109&Itemid=47

explaining the situation and including your documentation of your registered mailing and a copy of the advice of receipt.

5. The BPCPA will get back to you (or you can call them to see if they've received your complaint) and you will explain that you requested communication in writing only, but that the collection agency is ignoring your request. The BPCPA agent will give you a contact person they have with the collection agency (collection agencies in Canada have to be registered with the BPCPA, if they're not, they are not above board).

6. You phone this BPCPA contact person (not the agent who has been calling you previously) at the collection agency and tell them the BPCPA referred you to them and that they are not adhering to the legislation so if calls continue you will be filing a formal complaint with the BPCPA. At this point the calls stop.

Now you would think that the agency would then file a claim against you so that they can garnish your wages, however they did not do this in my case. I suspect this is due to my letter of dispute and request for validation. They know that I understand the fraudulent nature of fractional reserve banking and would file a counter-claim against them disputing the validity of the original debt etc. Keep in mind that collection agencies purchase the “non-performing account” from the original creditor for 7 – 10% of its face value. Is worth their time (money) to go to court, especially when they know their claim won't stand scrutiny?

If the agency does file a claim against you (hoping that you will ignore it so they can get a defualt judgement and garnish your wages) file a counter-claim within 14 days. Don't be afraid to go to court. Using the court system is fun and empowering when you learn its processes and that you have legal footing. Go to your local small claims court. They give out pamphlets designed for the layman on how to handle legal claims. They are on your side.
In dealing with collection agencies, the best defense is a good offence.

I have about $7,000 in debt to 2 credit cards,both are maxed out but I came into enough money to take care of it,but I wonder if it would pay me to try and negotiate this debt down?

If you have the full amount, you are MORALLY obligated to pay it. In any case, they have ZERO incentive to settle unless they have reason to believe they can’t collect the amount due. Unless you have not been paying for at least 6 months, they don’t have reason to believe they can’t collect.

I have been paying IRS back taxes for three years and still owe over $30k. I pay $600 a month, debited from my bank account. I had been paying a lot more but it became burdensome. Due to interest at this rate it will take me several years to pay off. Is it possible to still negotiate the amount down some way? They also have a lien on my property.

A settlement with IRS is called an Offer in Compromise where you pay less than 100 cents for every dollar you owe and IRS forgives the rest. It will do this if it determines you are offering as much or more as it could collect from you through monthly payments or seizing your property.

The amount you have to pay is, to use the IRS jargon, is “an amount that represents the reasonable collection potential of the account.” This is a lump sum equal to what you could get from the equity in all your assets if they were sold at a quick sale, generally 80% plus 48 times what you could pay monthly on an installment agreement.

For example, if you had a car worth $10,000 and owed $5,000 on it and nothing else and IRS said you could make payments to IRS of $100 per month you would have to offer a lump sum of 80% of the $10,000 minus the $5,000 owed = $3,000 PLUS 48 times $100 = $4,800 for a total of $7,800 on whatever you actually owed. Your own affairs are likely to be more complicated.

In your case apparently you have the ability to pay $600 per month so if you had absolutely nothing else, the starting point for an offer would be a lump sum payment of $28,800. If this is not realistic then you are out of the game already.

I have close to 20k of unsecured credit card debt from different creditors. Some of them have been willing to cut the balance in half in order to settle the account. Should I attempt to individually settle with them? Or do I take out a consolidation loan for 20k?

I went through this about 10 years ago after my late Wife passed away and I went for the settlements, it saved me several thousand dollars.

I was checking on line about getting my credit card debt paid off. Debt Solutions suggest I let them negotiate my debt.

No. These debt consolidators charge interest too. In fact, they charge a lot more than you'd wind up paying if you just paid your bills off to begin with. It just seems like less because it's over a longer period of time.

It's like trying to pay off debt with more debt.

The only way to get out of credit card debt is to stop charging things to the cards. Cut back on any thing extra, no eating out, no fun, nothing. Take all your extra money and apply it to the credit card bills every month, focusing on the ones with the highest interest rate first and working your way to the one with the best interest rate. You can plan out how long it will take you to pay off the cards here:

http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp

After you get your credit cards paid off, you need to save money so that you have an emergency fund and living expenses in case something bad happened.

I have heard that it can be done as part of the settlement, I just haven't had any luck finding any company that will negotiate the change in report status as part of the agreement. I am more concerned with my credit score right now. I am very close to qualifying for a mortgage and this would put me over the top.

I have been researching the same thing. I found a website with a letter that can be filled out and used in the negotiation process. It includes the answer of showing your debt "paid as agreed"

http://resources.lawinfo.com/letters/frm_DebtorsOffer.cfm?act=fill&site=carreonandassociates&siteType=

good luck!

I don't care about my credit score, that's already trashed. All my original debt has been charged off and has been in collections for at least the past 3 years. What is a reputable company that will hassle with my creditors for me?

Consumer Credit Counseling Service is nationwide and reputable. They can help. Check out the website I've listed below, and contact the CCCS in your area.

The debt collection company kept asking me for my bank account information and i wouldnt give it to them so they said we have nothing further to discuss. How do I respond to the summon?

tell them no way you can turn them in for asking about your bank account info call the BBB or consumer fraud and tell the what they want you did the right thing by not giving into them

Plenty dude, plenty, all the time. That's the sorrows of Capitalism.