How to settle a collection account: Part 3 of a 3 part series
In Part 1, we validated the debt. In part 2 we responded to creditors validation. Now for part 3.
For part 3 I'm going to assume enough time has passed for the collection companies to receive your response letter (you should know they received it - remember certified mail!). For the companies that failed to respond to your validation, you want to write to the 3 credit bureaus by certified mail. You will want to include a copy (keep your original) of your validation letter and proof of delivery. Also include a copy of your response letter and proof of that delivery. Make a request that they delete it in accordance with the FCRA (Federal Credit Reporting Act).
If the collection company responded to your validation, now is the time to pick up the phone and call them. You are going to be negotiating for two things. First a deletion letter to remove the account from your credit report. Secondly, an amount to settle the account for. Remember, you are now negotiating from a position of strength. You have the documentation that they failed to validate the debt properly. They face possible fines for violations of the FDCPA (Fair Debt Collections Practices Act). In my experience the best terms are negotiated by third parties (read - hire us to do it for you :) ). Remember - don't pay them until the reduce the terms of your negotiated agreement to writing and send you a signed copy of the terms. Also, don't assume they will delete it from your credit profile, demand they send you a deletion letter which you will in turn send to the 3 credit bureaus.
My sucess rate on these two methods is over 60% deletion. I do have another method I use for deleting collection accounts that is over 90% effective. I save this method for my clients (sorry).
:)
Matt
Toll Free: 888-NCFIXER (623-4937)
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