I have a few random bills that have gone into collections over the past few months. One was from one of those $80/mo data cards for your laptop. The total balance owed cingular was $460.94.
I just got a settlement offer from the debt collector on the account (er solutions, inc. out of renton, WA) for 80% of the original amount, thus, $368.75. It says I have 14 days to accept this offer.
I’m not sure what I’m going to do here. I have 1K I still owe the IRS by July. Of my lump payments (non-reoccurring) that is the most important one. As soon as I sell some more things, that will be the first payment I make. I wonder if these guys will give me a better offer down the line. It may be worth a call to see if they will accept say 50% of the original amount. I may have that in cash in the next few weeks, and if I do, I think I’ll give them a call and see if they will accept 50% right there. Should be fun.
{ 13 comments… read them below or add one }
Paying the IRS first is a great idea. They have amazing power to collect money that you owe them and they *will* come and get it. It’s better to pay it on your own terms rather than have them take it from your bank account unexpectedly.
As for the other debts that have gone to collections… Make sure you get any agreement in writing. If you don’t get it in writing, they will conveniently forget about your agreement later on and they’ll come after you for the full amount, and you’ll have no legal leg to stand on.
Also – NEVER, under any circumstances, send them a post dated check or give electronic access to your checking account. They’ll cash the check immediately and they’ll clean out your account if they have access.
You can afford to wait a while on that collection. The damage to your credit has already been done. They’ll wait a very long time before they sue you, although they will threaten just that. They are bluffing for an amount that low.
One more thing – when you get the agreement in writing, make sure it says that the amount your are paying is for “settlement in full” for the debt.
Debt kid,
I know you are against putting up a tip jar ala Casey, but I really think you have some fans who would love to help you out in this situation. Seriously think about it. I know you aren’t here to profit but I don’t think anyone would think less of you if you put up a tip jar. You don’t have the “haterz” like Casey,
good times.
debt collectors pour pee on their cereal every morning so keep yourself in a positive mindset and don’t let anything they say freak you out. if they don’t take 50% and get all pissy then say, “Well, chute, I guess we can’t work it out today,” and hang up. they’ll counter-offer. You’re being very reasonable but they’re in the business of badgering out every cent.
Don’t make them an offer to settle for 50% unless you’re willing and able to fund it. If you are, it’d be worth a shot.
If you want them to stop calling you, send them a letter with a signature/delivery confirmation required stating that it is inconvenient for them to contact you via phone at any time. (Search the net for collection agency info, there should be sample letters out there.) They’ll have to stop calling by law. Then when you have some cash to negotiate something, offer what you can. You actually have the upper hand here. Your credit is already messed up, so a collection on your report won’t do much. They’re at your mercy, so if they want anything at all, you can convince them to take what they can. Otherwise, I’d use the money on another bill.
As other posters say looking after the IRS is probably more important although I agree and empathize that paying this one off to get them out of your hair would be very tempting. IF you think you can juggle it why not? After all you did use the cingular service right?
Pay the IRS first. You do not want them on your back. the interest and penalties will mount up and the charges the IRS make are horrendous. Send whatever you can afford to the collectors, even if its just a $20.00 check, trust me they’ll cash it!
to everyone dealing with a washington State collection agency . Go to http://access.wa.gov/ look up : the collection agency board. call them and then send a written complaint, use dates and times, who you were talking to and the number showing up on your caller ID.
In Washington state there are STRICT codes of conduct. The fines start at over 1,000.00 per violation. How do I know this? I filed a complaint agianst ER solutions with them. I did owe money, I was on a payment plan. I sent all my payments Registered mail. If a company gets too many complaints and or fines they can and will lose their license. Most people just do not know who to call, check out the Web site above and file the complaint. You will be VERY HAPPY. I owed a company that went chapter 11, 800.00 bucks, ER solutions was fined by the state . Just call them and they will even put you in touch with the Washington State Attorney General’s Consumer Protection division, The AG can and will go after them. GOOD LUCK
This is for “Who to call said”, I looked on that website and couldn’t find what you said to look for. Where do I go on that website?
Always pay irs first, the problem I see is that you used the service so pay your bill too. They wouldn’t call you unless you owed them, so it is technically your fault for calling. As far as suing them, you can’t really sue them if they follow the fdcpa. And there are a lot of wrong ideas about what is legal and not, but following the fdcpa, they can call you every day, as long as they only receive contact 3 times a week depending on your state. Sure, you can say that you don’t want them to call you, and you can think you have all the time to pay because your credit is bad already, but do you know that the sooner you pay coll the better your credit will get? And the less interest you are going to have to pay collections? No one likes collections, and it is because you think that thwy just want your money,,,, but if you had paid for the service u used or bought in the first place collections wouldn’t be calling you! Bill collectors do not wake up and think of ways to bother you…. it isn’t ever personal and they generally feel bad if you have real problems and have made an attempt to pay your debt, remember bill collectors are people too.they are just trying to put food on their tables and pay their bills too. And believe it or not, some will go out of their way to make a way to settle the account for you in the least painful way possible.
Well best thing for u do is make payments on the balance than settle when ur ready! Start of with a $50 payment this month than ask them to settle down to 60% off the remaing balance..
Well all these notes are true , worry about the irs first! As far as for ers, make a payment even if it $25. And continue until ur ready to settle the remainder balance. They will work with u! And I really dout debt collecters use pee in there ceral! There people too! So to down talk them is very immature, they will be able to seattle with u when ur ready off the remainder balance! And remove this off of ur credit report…