Response to US Marine: while this isn't the best forum for me to go into my company's entire collection process, we work a debt for at least 120 days with letters, live agent calls, robo calls, emails, mailed invoices, and by suspending subscription service (where allowed) as part of our collection campaign. Even then, we only go to litigation after the debtor has been unresponsive to our attempts to contact them. I've found that if a debtor talks to their creditors, many times creditors will take their situation into account. I've offered lengthy repayment plans, reduced or waived interest or late fees, or partial settlement for those explain their hardship. But if a debtor is uncooperative or doesn't respond to our attempts to work out a balance, what other alternatives do creditors have?
These are all excellent suggestions but they don't address people who are incapable of paying down the interest bearing debt in a timely manner but could pay it down in a longer manner and if no more interest rate charges were accruing.
Reply to Aturk. What other options? Patience is the number one option. Agree to contact the credit card company and have the debt reduced to what it was at the time of default. Agree to even a 5 dollar monthly autopay with the promise that eventually it will be increased. Then report the account in good standing to the credit bureaus as long as those five dollar payments come in.
and on that page, how about the following option, I agree to pay down the debt as it stood at the time of the default, not a penny more. I agree to start making at least a _______ payment per month that will over time increase. I understand that if I make those monthly payments the account will be declared in good standing by the credit bureaus.
Unfortunately, a few of the suggestions you made would actually violate the FDCPA. Debt collectors are not permitted to "overshadow" the validation notice by giving consumers deadlines, making demands for payments, or giving settlement offers. Further, I don't believe consumers need a "sample" dispute notice. If the consumer truly has a disagreement or dispute with the debt being collected, he or she should be able to articulate that dispute.
But private arrangement between these entities doesn't change the fact that the money is still owed. Just because the original creditor took a loss on it, doesn't change what is really due. Is it ethical for someone to rack up tens of thousands of dollars of debt and never pay it back?
Aturk
1
Response to US Marine: while this isn't the best forum for me to go into my company's entire collection process, we work a debt for at least 120 days with letters, live agent calls, robo calls, emails, mailed invoices, and by suspending subscription service (where allowed) as part of our collection campaign. Even then, we only go to litigation after the debtor has been unresponsive to our attempts to contact them. I've found that if a debtor talks to their creditors, many times creditors will take their situation into account. I've offered lengthy repayment plans, reduced or waived interest or late fees, or partial settlement for those explain their hardship. But if a debtor is uncooperative or doesn't respond to our attempts to work out a balance, what other alternatives do creditors have?
View this comment in the discussion thread
Debt Neutrality Petition
2
These are all excellent suggestions but they don't address people who are incapable of paying down the interest bearing debt in a timely manner but could pay it down in a longer manner and if no more interest rate charges were accruing.
View this comment in the discussion thread
Debt Neutrality Petition
3
Reply to Aturk. What other options? Patience is the number one option. Agree to contact the credit card company and have the debt reduced to what it was at the time of default. Agree to even a 5 dollar monthly autopay with the promise that eventually it will be increased. Then report the account in good standing to the credit bureaus as long as those five dollar payments come in.
View this comment in the discussion thread
Debt Neutrality Petition
4
and on that page, how about the following option, I agree to pay down the debt as it stood at the time of the default, not a penny more. I agree to start making at least a _______ payment per month that will over time increase. I understand that if I make those monthly payments the account will be declared in good standing by the credit bureaus.
View this comment in the discussion thread
RHN91362
5
Unfortunately, a few of the suggestions you made would actually violate the FDCPA. Debt collectors are not permitted to "overshadow" the validation notice by giving consumers deadlines, making demands for payments, or giving settlement offers. Further, I don't believe consumers need a "sample" dispute notice. If the consumer truly has a disagreement or dispute with the debt being collected, he or she should be able to articulate that dispute.
View this comment in the discussion thread
RHN91362
6
But private arrangement between these entities doesn't change the fact that the money is still owed. Just because the original creditor took a loss on it, doesn't change what is really due. Is it ethical for someone to rack up tens of thousands of dollars of debt and never pay it back?
View this comment in the discussion thread