How to Beat a Collection Agency at Their Own Game
Know that you do not have to talk to them., If you do pick up the phone and talk to the collections agent, deny all knowledge of that debt., Change your phone number., Wait about 6 to 7 months before even thinking about negotiating with them., If...
Step-by-Step Guide
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Step 1: Know that you do not have to talk to them.
Think of those nasty collection agencies as little barking dogs: noisy and nothing to be afraid of.
The reason they are calling is to get money out of you the debtor because it is unsecured.
That is there is no collateral behind the debt unlike a car loan or a mortgage.
Remember that when a collection agency calls and gets 'tough' on you. -
Step 2: If you do pick up the phone and talk to the collections agent
The Statute of Limitations is 2 years from the day the account is found to be uncollectable.
If you admit to having the debt the clock is reset. , This will buy you about 4 months of peace and quiet before they find the new number.
On your voice message greeting make it very generic. , During this time period the collection agency has been calling and not received one red cent.
This is good news for you the debtor because now it is costing them more time and resources to collect.
Keep it going.
After 6 or 7 months it is become clear to the collection agency that it is becoming increasingly difficult to collect.
When you do negotiate at the 6 or 7 month period you can settle for a lot less than 100% of the debt.
Sometimes settling for 30% or less. , After about 9 or 10 months you can certainly negotiate a better price.
The collection agency will threaten to take you to court, but they will not do it.
It costs too much and they have no evidence other than a phone number and an amount outstanding. , Your credit rating will take a hit but not as much as the Go Thermonuclear method.
If you decide to take this method rest assured that this is better than giving in at the start.
This method ensures that the collection agency will want to take your offer. , If buying a car or house is not in the cards for the next 5 years then going Thermonuclear might have some appeal.
As mentioned before the Statute of Limitations in Ontario Canada is 2 years, after that collection agencies have no legal recourse on you the debtor.
All they can do is keep calling after that.
Do not pay one red cent at all to the collection agency and they cannot come after you the debtor legally speaking. -
Step 3: deny all knowledge of that debt.
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Step 4: Change your phone number.
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Step 5: Wait about 6 to 7 months before even thinking about negotiating with them.
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Step 6: If the collection agency will not budge
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Step 7: then hang up and wait another 2 or 3 months.
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Step 8: Use a simple method if you are planning to buy a car or house within the next 5 years.
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Step 9: Go Thermonuclear.
Detailed Guide
Think of those nasty collection agencies as little barking dogs: noisy and nothing to be afraid of.
The reason they are calling is to get money out of you the debtor because it is unsecured.
That is there is no collateral behind the debt unlike a car loan or a mortgage.
Remember that when a collection agency calls and gets 'tough' on you.
The Statute of Limitations is 2 years from the day the account is found to be uncollectable.
If you admit to having the debt the clock is reset. , This will buy you about 4 months of peace and quiet before they find the new number.
On your voice message greeting make it very generic. , During this time period the collection agency has been calling and not received one red cent.
This is good news for you the debtor because now it is costing them more time and resources to collect.
Keep it going.
After 6 or 7 months it is become clear to the collection agency that it is becoming increasingly difficult to collect.
When you do negotiate at the 6 or 7 month period you can settle for a lot less than 100% of the debt.
Sometimes settling for 30% or less. , After about 9 or 10 months you can certainly negotiate a better price.
The collection agency will threaten to take you to court, but they will not do it.
It costs too much and they have no evidence other than a phone number and an amount outstanding. , Your credit rating will take a hit but not as much as the Go Thermonuclear method.
If you decide to take this method rest assured that this is better than giving in at the start.
This method ensures that the collection agency will want to take your offer. , If buying a car or house is not in the cards for the next 5 years then going Thermonuclear might have some appeal.
As mentioned before the Statute of Limitations in Ontario Canada is 2 years, after that collection agencies have no legal recourse on you the debtor.
All they can do is keep calling after that.
Do not pay one red cent at all to the collection agency and they cannot come after you the debtor legally speaking.
About the Author
Jennifer Wells
Creates helpful guides on hobbies to inspire and educate readers.
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