Phone calls and other communications from debt collectors can be incredibly frustrating. They will cause some to change numbers and even move just to avoid it.
However the frustration is multiplied when the debt they are calling you about is not yours or is due to a mistake by a creditor. This is because the debt collector is unwilling to acknowledge a lender mistake. They have already spent money purchasing your debt.
If you find yourself in this position you should request validation of the debt. This is done by writing a letter to the debt collector and requesting validation. I suggest you do this by certified mail so you have documentation that they received your letter.
We strongly discourage you requesting validation over the phone; unfortunately these requests are often ignored. In addition you only have 30 days to request validation of the debt, once notified.
In addition it is becoming common for debt collectors to sell your account if you request validation. This is why I suggest you request validation through certified mail so you can prove that your request was ignored.
Unfortunately a lender mistake often leaves you in a position where you will need to hire a credit repair service to remove the negative items that have been reported on your credit. This is the best method to limit the damage to your credit score.
However if the debt is valid then you should settle it. You should offer a settlement of 50% of the account balance.
This is because the collector has purchased your debt for a fraction of the balance. In addition even if the collector does not accept that offer, they will see that you are willing to pay this and will be willing to negotiate a price.
You should also request that the debt collector remove the negative listing they created on your credit report in exchange for your payment. Failure to do this and the negative mark will change to a paid collection. This is still seen as a bad credit item by lenders and will not improve your credit score.
In sum, I suggest a service to repair you credit from debt collectors.
However the frustration is multiplied when the debt they are calling you about is not yours or is due to a mistake by a creditor. This is because the debt collector is unwilling to acknowledge a lender mistake. They have already spent money purchasing your debt.
If you find yourself in this position you should request validation of the debt. This is done by writing a letter to the debt collector and requesting validation. I suggest you do this by certified mail so you have documentation that they received your letter.
We strongly discourage you requesting validation over the phone; unfortunately these requests are often ignored. In addition you only have 30 days to request validation of the debt, once notified.
In addition it is becoming common for debt collectors to sell your account if you request validation. This is why I suggest you request validation through certified mail so you can prove that your request was ignored.
Unfortunately a lender mistake often leaves you in a position where you will need to hire a credit repair service to remove the negative items that have been reported on your credit. This is the best method to limit the damage to your credit score.
However if the debt is valid then you should settle it. You should offer a settlement of 50% of the account balance.
This is because the collector has purchased your debt for a fraction of the balance. In addition even if the collector does not accept that offer, they will see that you are willing to pay this and will be willing to negotiate a price.
You should also request that the debt collector remove the negative listing they created on your credit report in exchange for your payment. Failure to do this and the negative mark will change to a paid collection. This is still seen as a bad credit item by lenders and will not improve your credit score.
In sum, I suggest a service to repair you credit from debt collectors.
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