After you know where you stand with your creditors…Now comes the fun part, call each of the creditors on your list and ask to speak to highest ranking manager on duty. Once you have a manager on the phone get his complete name and direct-line phone number and inform them that you would like to make a settlement offer. Inform the manager that he has 24 hours to accept and fax or e-mail you a “settlement-in-full” offer letter, or you will assume that they do not wish to be included on the list of debt that you will be repaying. Do not answer any questions the manager may ask and do not engage in a conversation. Politely inform them that you have a very specific and tight budget and those creditors who do not wish to accept a settlement offer will be required to “cease and desist” any future contact pursuant to the Fair Debt and Collection Practices Act (FDCP Act). Leave a contact number (not a work number of course) and hang up the phone if you have to.
After you you have given your creditors 24 hours to respond, call all the creditors who sent you a 15% settlement-in-full offer and inform them that you will require a signed “settlement-in-full” confirmation letter upon their receipt of your payment. Pay each of the creditors that accept your terms. Once again, do not engage in conversation or answer any questions. Politely give them your fax or e-mail information so as they can send you the letters you have requested. Remember, these people are trained commission based collection professionals, they will threaten and utilize every possible technique at their disposal to get you to either talk to them, or offer them money to settle – do not listen to their threats and hang up the phone if you have to,
Repeat the above negotiation process utilizing the same 15% settlement offer amount on the 20th and the day before the last day of the month. Most collection agencies and creditors work on a commission basis that begins and ends monthly. So trust the process and come end of month you will find a friendlier voice calling you and willing to accept your repayment terms providing you can make your settlement payment within the next 24 hours. Continue this negotiation process until you have received a majority (more than 50% of your creditors) of settlement-in-full receipt letters.
Now make 3 copies (don’t send your originals) of your “settlement-in-full” and “verificaton” letters that you mailed and were not returned with satisfactory verification of debt information (original creditor, address, original debt amount). utilizing “certified mail,” send these copies with a letter stating,“please update my credit report,” to each of the three credit bureaus mailing addresses will be included on the credit reports you received).
You may have to repeat this process a few times and you may have to increase your settlement percentage to be completely successful. But remember, each time you feel a little frustrated think of the thousands of dollars you are saving, and the feeling you will have once your credit has been repaired to the point that you are once again deemed credit worthy enough to be part of the “American Dream.”
If you have Further questions, please contact Troy Clark @ email@example.com #clarkt