If you have a large outstanding debt, chances are that it will eventually go to a collection agency. These agencies use harassing techniques to get what money they can from you, including multiple phone calls a day and letters.
In order to make it stop, you may be able to work out a settlement deal with them, but it doesn’t always work out. In some cases, a creditor or a collection agency may even refuse to accept payments from you.
What If a Creditor Rejects Your Payments?
Although a creditor or a collection agency can choose to accept settlement deals for less than the original amount, they are not required by law to do so. Not only can a collection agency demand the full amount, but many states allow them to add on extra fees and interest rates if the debt remains unpaid.
What Can You Do If Your Settlement Offer Is Refused by a Collection Agency?
Just because they said no once doesn’t mean they won’t change their minds. If the first response is a no, consider revising your offer. The collection agency may be inclined to accept a revised offer if the compromise is more in their favor.
If you still get nothing but shaking heads from them, find out who actually owns the debt. In many cases, the collection agency actually buys the debt from the original creditor, but if the collection agency in your case is a third party hired by the creditor, you may be able to negotiate directly with the creditor.
If you are able to work out a settlement deal with either the creditor or a collection agency, make sure to get it in writing before you make a payment. The deal should include the revised amount and all payment terms. Make sure to include a clause mandating that the debt will be taken off your credit report once it’s paid.
If all else fails, consider talking with a bankruptcy attorney. An experienced attorney can help you negotiate a settlement deal, or help you file Chapter 7 bankruptcy or Chapter 13 bankruptcy. If you file for bankruptcy protection, the creditor harassment will stop immediately and you will be able to discharge most or all of your debt in short time.
Call or fill out an online form today for a free consultation. The bankruptcy lawyers with Garland & Mason, L.L.C. are here to help you achieve your goal of becoming debt free.