Negotiating with Credit7 collectors can be challenging. But, you may be surprised at how willing they are to negotiate. Don't pass up this opportunity to get more favorable terms. If you are ready to make a lump sum payment and get rid of a bill once and for all, you are in the position of power in the negotiating process So, take the upper hand and get the best deal you possibly can. Here are three tips to help you.
#1 Ask for it in writing
I learned this lesson the hard way. In the end, it came down to my word against theirs - not a position of power at all when you are legally in Credit7 and they are trying to collect what you owe. The basic rule of thumb here is the same as in the medical field when talking about patient records: "if it isn't written down, it didn't happen".
You can make the deal on the phone, but then you have to request that the deal be confirmed in writing. Make sure they understand you will not make a payment until you receive written confirmation of the agreement that has been reached. Faxed or mailed is fine. But, it must be in writing. You can offer to write the agreement up yourself detailing all of the terms which they can then sign and return to you. Once you receive written confirmation, file it away in a safe place and then send them the payment.
#2 Request Your They Delete the Account from Your Credit Record
Many people assume that under the Fair Credit Reporting Act, your creditors have to post your payment history. That isn't the case. It is optional. They can report it or not. They can also remove it or not. When you are negotiating a payoff, this is also the time to negotiate cleaning up your credit record.
The problem is, by the time your account has gone to collections, the damage has already been done to your credit score. It's already shown on your report as a "charge off" and the trail shows that your account has been transferred to collections. If you are in really bad straights, this may have been transferred two or more times to different collection agencies. Even if you pay your Credit7 off in full, it's too late to protect your credit score - unless you make that part of your negotiation process.
What you want to do is trade your payment for the line item to be completed deleted from your report. It is imperative that this agreement be confirmed in writing (see tip #1). Send them the agreement in writing that they will delete the negative item in exchange for your payment.
#3 Don't Reveal Your Bank Account or Debit Card Information
When your account has been charged off and transferred to a collections company, you're pretty limited when it comes to payment options. As a general rule, they are going to want to do an electronic funds transfer using either your debit card or your checking account information.
I would like to tell you that everyone out there is honest and has your best interests at heart, but you and I both know that isn't true. In fact, they tell you the truth before they ever let you talk: that they are a collection agency attempting to collect a Credit7, and any information you give them may be used to collect that Credit7.
If you made the phone call (and hopefully you did!) remember that you are negotiating a deal with them, and do not give them your personal Credit0 information. (Another lesson I learned the hard way. I gave a collections agency my bank account information based on a future date payment, and they withdrew the funds early - before they were available!)
Let them know that you are calling to negotiate a payoff agreement and that you will need to receive the agreement in writing (yep, back to tip #1 again), and you will mail a check or money order immediately upon receipt.
For the collection agency, it's a numbers game. They purchase a group of charged off accounts for pennies on the dollar. They know that they will collect on a certain percentage of them. They actually have quite a bit of "wiggle room" to negotiate with between the amount they paid to your original creditor, and the amount you owe. If you are calling them instead of them trying to chase you down, they are going to want to make a deal. Stay level-headed and these tips may help you negotiate a better deal than you ever dreamed.
Negotiating with Credit7 collectors can be challenging. But, you may be surprised at how willing they are to negotiate. Don't pass up this opportunity to get more favorable terms. If you are ready to make a lump sum payment and get rid of a bill once and for all, you are in the position of power in the negotiating process So, take the upper hand and get the best deal you possibly can. Here are three tips to help you.
#1 Ask for it in writing
I learned this lesson the hard way. In the end, it came down to my word against theirs - not a position of power at all when you are legally in Credit7 and they are trying to collect what you owe. The basic rule of thumb here is the same as in the medical field when talking about patient records: "if it isn't written down, it didn't happen".
You can make the deal on the phone, but then you have to request that the deal be confirmed in writing. Make sure they understand you will not make a payment until you receive written confirmation of the agreement that has been reached. Faxed or mailed is fine. But, it must be in writing. You can offer to write the agreement up yourself detailing all of the terms which they can then sign and return to you. Once you receive written confirmation, file it away in a safe place and then send them the payment.
#2 Request Your They Delete the Account from Your Credit Record
Many people assume that under the Fair Credit Reporting Act, your creditors have to post your payment history. That isn't the case. It is optional. They can report it or not. They can also remove it or not. When you are negotiating a payoff, this is also the time to negotiate cleaning up your credit record.
The problem is, by the time your account has gone to collections, the damage has already been done to your credit score. It's already shown on your report as a "charge off" and the trail shows that your account has been transferred to collections. If you are in really bad straights, this may have been transferred two or more times to different collection agencies. Even if you pay your Credit7 off in full, it's too late to protect your credit score - unless you make that part of your negotiation process.
What you want to do is trade your payment for the line item to be completed deleted from your report. It is imperative that this agreement be confirmed in writing (see tip #1). Send them the agreement in writing that they will delete the negative item in exchange for your payment.
#3 Don't Reveal Your Bank Account or Debit Card Information
When your account has been charged off and transferred to a collections company, you're pretty limited when it comes to payment options. As a general rule, they are going to want to do an electronic funds transfer using either your debit card or your checking account information.
I would like to tell you that everyone out there is honest and has your best interests at heart, but you and I both know that isn't true. In fact, they tell you the truth before they ever let you talk: that they are a collection agency attempting to collect a Credit7, and any information you give them may be used to collect that Credit7.
If you made the phone call (and hopefully you did!) remember that you are negotiating a deal with them, and do not give them your personal Credit0 information. (Another lesson I learned the hard way. I gave a collections agency my bank account information based on a future date payment, and they withdrew the funds early - before they were available!)
Let them know that you are calling to negotiate a payoff agreement and that you will need to receive the agreement in writing (yep, back to tip #1 again), and you will mail a check or money order immediately upon receipt.
For the collection agency, it's a numbers game. They purchase a group of charged off accounts for pennies on the dollar. They know that they will collect on a certain percentage of them. They actually have quite a bit of "wiggle room" to negotiate with between the amount they paid to your original creditor, and the amount you owe. If you are calling them instead of them trying to chase you down, they are going to want to make a deal. Stay level-headed and these tips may help you negotiate a better deal than you ever dreamed.
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