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Pittsburgh Attorney Jeff Suher in Negotiating Settlements/Payments with Debt Collection Company

We get a lot of questions about paying off debt.

Our firm is not a debt-consulting firm and we do not in any way negotiate debts on behalf of consumers.

However, if you are trying to pay off debt, you should keep the following in mind:

1. Find out first who owns the account. Is it the company that provided you with the credit or is it a debt collector who bought the account? If it is a debt collector who bought the account, do they have proof of the purchase? Do they have documentation supporting the amount they claim is owed?

2. If the company that provided the credit still owns the account, you should try speaking with them directly especially if the debt collector hired to collect the debt is harassing you. Remember, this is who you owe, not the debt collector. However, don’t be surprised if the creditor refuses to speak with you.

3. If you are unable to pay the original creditor and will be working with the debt collection company, the most important thing to do is GET EVERYTHING IN WRITING.

4. Make sure you get confirmation in writing from the debt collector that the debt was settled.

5. If you settle in full for less than the amount allegedly owed, have the debt collector put in writing that the debt will be paid in full with your payment. You can explain to the debt collector that you want to make sure the remaining balance (that isn’t paid to the collector) is not re-sold to another collector. It would also be a good idea (if you can) to get the debt collector to put in writing that the balance will not be sold to another collector.

6. If you do settle for less than the full amount allegedly owed, there may be tax consequences. You should consult with a tax specialist. This firm does not give tax advice.

7. Make sure that the debt collector puts in writing that they will be contacting the credit reporting agencies to have this account marked accordingly.

Just because you are paying off your debt does NOT mean the account will be removed as negative from your credit history. You can try and negotiate with the debt collector to take it off completely, but this rarely happens. And this can ONLY happen if you are speaking to the collector who originally posted the item on your credit report. Even if this is the case, the debt collector does not have to take it off. The debt collector only has to mark the account as PAID. This does not take the account off your report nor does it take it out of the “unsatisfactory accounts” listing. It will merely show that the account was eventually paid.

8. How old is the debt? Can I get sued if I don’t pay? You should consult with an attorney to find out about the applicable time period known as the statute of limitations. There is also a time period in which the account will automatically fall off of your credit report. This period is usually approximately 7 ½ years.

9. DO NOT give out your checking account information or credit card number. This includes the routing number or account number listed at the bottom of your check. Often times a debt collector will refuse payment, that’s right, refuse payment unless you provide access to your bank account or send post-dated checks. You do not want to do this. Only bad things can happen If you are going to make a payment, pay with a bank check or money order. If the collector refuses this form of payment, contact Jeff or an attorney in your area. You should not have to give out your bank information. YOU DO NOT want debt collectors having this information for any reason.

10. Finally, ask the collector to send you any agreement to pay in writing



Jeff Suher, Pittsburgh Consumer Attorney who specializes in the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. 

Jeff sues abusive debt collectors and helps consumers that have incorrect information on their credit reports.  
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©2010 Jeffrey L. Suher, PC, All Rights Reserved, Reproduced with Permission
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