Negotiating with debt collectors?

ok i got a call from a debt collector today. he left a semi-threatening message. he said i dont think you understand the severity of the situation...you are going to be in trouble. he gave a case number, told me to call back. and said goodbye and good luck...in a condescending manner. i just laughed lol. it was funny the pathetic threatening he was giving lol. he didnt even identify himself and left that stupid message on my answering machine.

anyway i think he was just trying to scare me. on a serious note i need to take care of this. its not a huge debt. i called back and got someone else and they made an offer. i dont know what else they will offer i said i would talk to the guy and think about it.
what steps should i take to make sure this is done right and fairly.? should i get something in writing? is he just trying to scare me or can they take me to court or something?
and i just know you trolls with ads for debt consolidation are goin to chime in.....not interested!

Hello,

Regarding debt validation in Canada:

I am a dual US/Canadian citizen. I have successfully used the US debt validation process to handle US creditors. Using Section 809b of the FDCPA as outlined at this website:

http://www.creditinfocenter.com/rebuild/debt_validation.shtml

Knowing of the US debt validation process, I looked for something similar in Canada. What I found is the Collection Agencies Act and the BPCPA. The Collection Agencies Act defines what Collection agencies in Canada are allowed to do and not do and the BPCPA enforces it. Using these two together has an effect similar to section 809b of the Fair Debt Collection Practices Act in the US. For a summary of the Canadian Collection Agencies Act:

http://www.ic.gc.ca/epic/site/oca-bc.nsf/en/ca01786e_1.html

One of the things collection agencies in Canada are not allowed to do is call you if you have sent them a request in writing by registered mail to communicate in writing only. If you accompany this request with a letter disputing the validity of their claim, it is a powerful blow to the collection agency. Collection agencies know their claim will not stand up in court if the debtor understands the fraudulent nature of fractional reserve banking. Thus if you are disputing their claim, their only way of getting you to pay is to harrass you over the phone. If they can't do that, they have no recourse, except to file a claim and hope you will ignore it, allowing them to get a default judgement against you and then garnish your wages.

However, if you have let them know that you will be disputing their claim and requesting verification of it by requiring them to produce the original loan agreement (which is impossible since it has been sold as a negotiable debt instrument on the open market by the original creditor) they seem not to pursue the matter. I recently used this approach against Federal Credit and Consulting Corp. based in Regina (I am in BC), and have received no further communication from them.

Here's some background reading which describes how collection agencies really work:
http://www.rumormillnews.com/cgi-bin/archive.cgi?read=27104
http://www.rumormillnews.com/cgi-bin/archive.cgi?read=27104

Here's reading on why the original debt is a fraud:
http://www.debt-forgiveness.us/bank-fraud-article.html
http://www.fdrs.org/money_creation.html

My debt was related to a student loan. The claim was less than $10,000 and therefore would be a small claims court issue, but it may work for greater amounts.

Here's the process I followed:

1. Upon receiving a letter from the collection agency, reply with a letter stating that you dispute the validity of their claim and require a. Proof that the original debt has been assigned to the agency, b. A complete history of the debt beginning with the original creditor and c. A copy of the original loan agreement. And, very important, request that all further communcation regarding this debt be completed in writing only (you must give them your mailing address). (Never speak to the collection agency over the phone. This is your right even though they will try to make you feel irresponsible for not answering their calls).

2. Send this letter by registered mail (ask the post office for advice of receipt or you can get it from Canada Post's website once it has been delivered and signed for) and keep copies for yourself.

3. The Collection agency will most likely keep calling you even after receiving your letter. This is because they know this is the only way they can get you to pay. As soon as you receive proof that your letter has been signed for and received, perhaps give them 10 days to stop calling, then ...

4. If/when they continue to call despite your request, you file a claim with the BPCPA:

http://www.bpcpa.ca/index.php?option=com_content&task=view&id=109&Itemid=47

explaining the situation and including your documentation of your registered mailing and a copy of the advice of receipt.

5. The BPCPA will get back to you (or you can call them to see if they've received your complaint) and you will explain that you requested communication in writing only, but that the collection agency is ignoring your request. The BPCPA agent will give you a contact person they have with the collection agency (collection agencies in Canada have to be registered with the BPCPA, if they're not, they are not above board).

6. You phone this BPCPA contact person (not the agent who has been calling you previously) at the collection agency and tell them the BPCPA referred you to them and that they are not adhering to the legislation so if calls continue you will be filing a formal complaint with the BPCPA. At this point the calls stop.

Now you would think that the agency would then file a claim against you so that they can garnish your wages, however they did not do this in my case. I suspect this is due to my letter of dispute and request for validation. They know that I understand the fraudulent nature of fractional reserve banking and would file a counter-claim against them disputing the validity of the original debt etc. Keep in mind that collection agencies purchase the â€œnon-performing accountâ€ from the original creditor for 7 â€“ 10% of its face value. Is worth their time (money) to go to court, especially when they know their claim won't stand scrutiny?

If the agency does file a claim against you (hoping that you will ignore it so they can get a defualt judgement and garnish your wages) file a counter-claim within 14 days. Don't be afraid to go to court. Using the court system is fun and empowering when you learn its processes and that you have legal footing. Go to your local small claims court. They give out pamphlets designed for the layman on how to handle legal claims. They are on your side.
In dealing with collection agencies, the best defense is a good offence.

well keep this in mind when you are making a settlement with the company-it will put a fairly substantial mark on your credit score. it's good that you are taking care of the debt. but the collector shouldn't have been that way to you. you need to call them up and get the name and the employee # of the person that helped you so you have proof you spoke with an account rep. and ask them to mail you the statement saying there was a settlement and that the debt was paid according to what was agreed upon. oh, and when the account rep is offering you a settlement, there is ALWAYS room to negotitate the terms and amount,they are there to just get you to pay the maximum you can. so don't feel pressured if they shoot out a number that you can't afford. !!

I do collections for a living and all I want is for people to pay their bill. Nothing more, nothing less. If it isn't huge, call and offer to pay by credit card to resolve it. You can offer less but they don't have to take it. Just so you know many of the agencies out there will take you to court. And at the very least they can truly trash your credit. I always try to be nice unless the person gives me a reason not to be. I understand the embarrasment of being behind on payments and I just want to help you get caught up and get my company paid what's fair. Good Luck to you and there are collection laws. Don't be afraid to call someone on it if they are threatening in any way.

On a side note, the Fair Debt Collection Practices prevents debt collectors from doing certain things to collect debt, such as:

-Threatening to refer your account to an attorney, harm your credit rating, repossession or garnishment, without actual intention of action on the threat. Please note that a debt collector may warn you of an actual impending intention to refer your case to an attorney or to report your debt to a credit agency. What they cannot do is use a false threat to try to intimidate you into paying;

-Threatening you with arrest if you do not pay the debt.

As stated above, get anything negotiated in writing, and never send a check as they can debit your bank acct.

Wow, great question. A lot of folks are in the same boat. Get the settlement offer in writing, you will need that if they don't promptly update the trade line on your credit report, and then send then a bank draft or money order. Your checks have critical information they should not have like routing and account numbers. Make a copy of the draft or money order and send the payment certified mail. They can and most likely will take the matter to court, with a judgment they are given certain avenues to collect the debt like wage garnishments or freezing assets. A judgment would then be on your credit report for 10 years, even after its paid. Raw deal!
The below website is for the Federal Trade Commission and you can review the Fair debt collection act so you will know your rights.
Hope it helps!

YES! Get it in writing. Make sure it says "without recourse" and/or "accepted as payment in full".

Once you get the letter, get a money order (not a check!) and staple it to a copy of the letter and mail it. Keep a copy of the letter and the money order FOREVER!

Do not give them your bank information (even by sending a check)!

Before you do anything...

I'd suggest getting a debt validation letter off the internet like here http://www.creditinfocenter.com/forms/sampleletter9.shtml

they must validate it within 30 days, or it falls off your credit report.

I mean, you really should, why would you pay money to BOB if You Owed it to Sally originally? Doesn't make sense...

If it is validated, try to get it completely taken off your report or marked as 'paid' with a zero balance. Also, when you mail your letter, do it first class return receipt requested, that way you leave a paper trail.

Good Luck

P.S. The original credit can take you to court, but generally won't until the statue of limitations is about to expire--but that's a whole other story.

when dealing with these serious questions, i'd prefer to have a third party around me to be a witness to something. Usually friends or relatives, and if u can afford a lawyer, it would b even more favorable.
and the part about giving u an offer from another guy seems really strange. y would a debt collector give u an offer? this is hilarious! anyway, i think if procedures should be done perfectly so that u dont get any bad consequences in the future.
there should be a black and white evidence coz we never know wat the debt collectors have up their sleeves.

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