Douglas
Alexandria,#2Consumer Comment
Mon, April 23, 2007
Debt collection clas 101: When a debt goes unpaid for many years collection companies come in a buy old accounts for pennies on the dollar on the original balnce owed. Then when they track you down they add there fees and "interest" on top of original debt. Well this gives them negotiating room to settle for more than they paid original creditor. thats how they make their money! Now to case at hand: I had account that was bought by midland creditor collector after they could not get any money they sold it to jefferson financial. Well I get this offer in the mail one telling me in very plain english that it was a debt collector and the other was offer from Embrace.ZERO percent interest on the balance as long as you paid 12 payments on time. I read the offers over for a week and tried to find the catch, called and asked questions, no catch, you transfered what they said you owed and if you made 12 payments on time at 0%, balance was like 2000+ or something, if I paid on time for 12 months they would reduce that amount by $699.00 and I would have reasonable interest rate visa card, I said well I need to get this stuff cleared up since I had a bit of extra money a month after I signed up. Paid off the 1300+ of the 2200+ debt and got my visa card with I think either $699 or $799 credit limit. debt is paid I have visa for emergerncies. I only settle with the collectors that are nice to me and don't try to threaten me, when they do that they never get paid. I am happy and they are happy. They show the debt as paid not settled for less than amount due which is pretty important I have learned. Son is 28 he needs to take them up on offer. I never pay full amount they say I make them an offer they can't refuse! i offer 1/3 amount to see if they sound weak, if they come back immediately and say no way, then I ask them what they need to get there money or go to the black hole waiting! No lie settled a $4000++ account for around $1200 or $1300, I could give you the numbers on other accounts but you get the point. They never go away, they will find a way to speak to the debtor shortly before the statue of limitations is up and you start another 5 yrs or 7yrs on your credit report. Hppened to me one month before statute of limitations. I owed the money and when i had ability to pay and they were reasonable with me, I settled. Win/Win, So just take them up on their fair offer and settle the debt! If I thought they were a scam I would be the first to say report them to state attorney general consumer fraud and the FBI (wire fraud), US postal service(mail fraud) and all the other 3 letter federal agencies I have in my contact book! Only limit to ?Embrace is until you have card a while you can't transfer high interest card balnaces to it, which makes sense it is a rebuilding credit company, so they don't want to give us dead beats they rope to hang ourselves with. Very seldom will you hear me defend a collection agency, jefferson/embrace good to go/capital one collections were so nice to me I asked the girl if she had second account she was the agent on that one too settled both over few months, ONLY cause she treated me like a human being.