Dealing with collection agencies can be a frustrating and lengthy task. Sometimes we are faced with collection agencies calling us day and night, from private numbers. Most people rarely answer the phone because they don’t want to deal with a grumpy, unreasonable collector on the other end. Some people don’t answer the phone because they are afraid they don’t have them ability to pay the bill, or just don’t want to deal with the situation. I think its important to remember that the collector calling you is a person as well. They are doing their job like we are doing ours. The collector, in most cases, is just trying to excel at their job and move up the ladder, like we are in our positions. This being said, I will agree, that in some of the cases(some would argue majority) the collector is using tactics that are not in line with their guidelines. Their are some important things to remember when dealing with collection agencies. Here is a quick list to follow when dealing with collection agency:
- Be Logical with the agent and don’t let emotion get in the way.
- Negotiate your collection item. Collection agencies get paid a percentage of what they collect, and since they are a volume based business, they will want as many bills paid as possible. Some will negotiate to 75 cents on the dollar.(ex. you owe $100. They will accept $75)
- Get everything in writing. Phone conversations are tough to hold someone accountable for. The collector should be willing to communicate over email. If they are not willing then ask to speak to a supervisor( Their will always be a supervisor available). Write down phone conversations, names of agents you are dealing with, time of conversations, and what was talked about. When communication over email always create an email thread and use the reply button.
- Always be willing to give the collection company your up to date contact information. Be accountable for this contact information and ask them politely to only use the contact information you have supplied them. Hold them accountable if they don’t follow this direction.
- Again, be LOGICAL. don’t let emotion get in the way.
- If you pay the collection in full in one payment they will give you a better deal. If payment arrangements are made stick to the arrangements.
- When the collection is paid in full ask them to “manually” report and “electronically” report the updated information to the bureau. Before you pay in Full get these letters emailed to you. This is important to remember. Don’t assume what they tell you is going to happen. Take control of your bureau.
- If the collections company calls you for the first time to collect and you have the means to pay the bill in full then agree to pay the bill in full if they are willing to offer a PTD(pay to delete). This would mean if you agree to pay the bill right away, in full, they will delete the collection from your bureau. Again, get this in writing.
Using these methods will help you get approved for a car loan a lot quicker.
Just my 2 Cents