Collection Agencies - Debtors have the upper hand on collection agencies in 2009 - Canada

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RE: Debtors have the upper hand on collection agencies in 2009

Postby zombiesandsunshine » Wed Mar 25, 2009 08:11:52 AM

i can't afford any 'lump sum' payment, to be honest. i was laid-off in january, and so far, the only luck i've had with jobs is a part-time thing where i'm getting 10-20 hours a week. i'm at a point where i can't even pay my rent, i've managed to give the landlord 200 so far this month, pretty soon, i won't have a place to live. so no, no-one is 'gaming' anyone.
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RE: Debtors have the upper hand on collection agencies in 2009

Postby montyloree » Mon Mar 23, 2009 08:33:32 AM

zombie... you can try for 10% however, they're going to want to see that you can't pay any more..

The question goes to how much you can afford with a lump sum payment.

If you're just gaming them, then they probably will want to settle for a higher amount.

average_joe has done well with settling at 10% because he's in an illiquid situation.

Finally... if you're collections already, your credit with regards to this item is bad, and it's not going to get any worse.. so... best to settle for as little as possible.
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RE: Debtors have the upper hand on collection agencies in 2009

Postby zombiesandsunshine » Mon Mar 23, 2009 03:28:37 AM

is there a specific department or position to ask for so i can end up talking to someone who can help? when i called them originally, i just got transferred around to different 'supervisors' which i assume were just the regular call agents, because they all just repeated the same "it's been sent to collections, we have nothing to do with it now" line.
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RE: Debtors have the upper hand on collection agencies in 2009

Postby average_joe » Sat Mar 21, 2009 06:16:57 PM

I would try and settle this debt directly with cibc visa. I find it's easier to get a lower settlement when you’re dealing directly with the creditor. If you can show you have no income and you’re broke, I would offer them 10% for starters. I would explain to them that your situation isn’t going to get better and you are thinking of filing for bankruptcy, I believe that will get their attention.

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RE: Debtors have the upper hand on collection agencies in 2009

Postby zombiesandsunshine » Sat Mar 21, 2009 03:24:00 PM

It's a Cibc VISA. I don't recall the name of the collection agency, I know they're in Ontario though. I'm in a position where I was laid-off in January, and so far haven't been able to get anything but very part-time work. To date, I haven't even paid 1/4th of my rent for March, landlord has been understanding so far, but that won't last long. The collection agent was quite friendly, surprisingly, and offered 65 cents on the dollar, but even that is an amount I'm not going to be able to come up with. Tried everything, tried for a loan, thought about selling some belongings but decided i wouldn't get much, asked family members to lend me some money, nothing's worked.

the last time i paid anything on the account was mid-january, actually just days before i was laid-off, i paid close to $200 on the acount, bringing it down from 2300. i had an 'agreement' with visa set up but something wasn't right on their end and the date was set one month earlier than i'd agreed i would pay a certain amount by. the plan was to pay $300, and then continue on with monthly payments of $50-100.
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RE: Debtors have the upper hand on collection agencies in 2009

Postby average_joe » Wed Mar 18, 2009 07:52:46 PM

Who is the creditor you owe and what is the collection agency's name? When was the last time you made a payment on the account?
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RE: Debtors have the upper hand on collection agencies in 2009

Postby zombiesandsunshine » Wed Mar 18, 2009 07:49:44 PM

here's my situation: i owe approx. 2200, the collection agent offered me a lump sum payment option of 65%, should i be trying to get him to drop it more than that?
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RE: Debtors have the upper hand on collection agencies in 2009

Postby average_joe » Wed Feb 25, 2009 07:51:52 PM

If you owe for an example $5000.00, offer them $500.00(10%) for a one time lump sum payment to be settled. If they accept, make sure your get the settlement offer in writing before handing over your money. When you’re making these offers they will want you to fill out financial capacity forms or a letter of your financial hardship explaining why you can’t pay the full amount. If your planning to make these offers its best if you contact the creditor and find out who is the highest person in the collection dept that has the authority to make these deals. I find that collection agencies do not want to accept these kinds of deals.

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RE: Debtors have the upper hand on collection agencies in 2009

Postby zombiesandsunshine » Wed Feb 25, 2009 04:32:07 PM

do you mean to try for a final amount to be paid of 10%?
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Debtors have the upper hand on collection agencies in 2009

Postby average_joe » Tue Feb 24, 2009 08:05:47 AM

Here is a tip for people out there that owe collection agencies money. The collection agencies are feeling the pinch and they are using every scare tactic to get money out of people. If you’re trying to settle debts and you don’t have the money, offer them 10% and keep telling them that, in time they will either accept or stop calling. If they accept make sure you get the settlement offer in writing before handing over your money. The rates of bankruptcies are up and collection agencies will have a hard time collecting money, just remember you have the upper hand on them. The 10% settlement is most effective if you have no income or assets. If they are not aware of any assets or your job, don’t volunteer the information. The old saying is what they don’t know, won’t hurt them.
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