What's the Point?

Discussion in 'Credit Talk' started by lbowman, Sep 4, 2001.

  1. lbowman

    lbowman Well-Known Member

    In validating that is. I'm a new poster to the site and I've read over a LOT of different topics. One thing I'm still not clear on:

    Is a validation letter effective for original creditors?
    Are they legally required to respond? If so, in what time frame?

    I have several charge-offs (accounts charged-off this year) and would like to negotiate settlements. It seems that it would be pointless to ask for validation because some of the accounts are not with a CA (the ones that are are being ask to validate the debt). What's the best course of action to negotiate with the original creditor? Should I offer a settlement in exchange for deletion/neutral rating? Would they be willing to work with me since my charge-offs are so new? FYI: I disputed the items with the 3 CRA's and all came back verified :-( Try again before negotiating??

    Help is appreciated and welcomed.
  2. lbowman

    lbowman Well-Known Member

  3. MartysGirl

    MartysGirl Well-Known Member

    Ok... it sounds like you would prefer to negotiate? correct? If so... you really don't need to send a validation letter. Especially.. if the charge offs are recent.

    When trying to negotiate .... I can say it depends on the company... Some may be willing to work with you...!! IF... You can find a sympathetic ear.. ;-) If you don't get that ear the first time continue to call until you can find someone who will help. If they do agree... make sure it is to benefit you (deletion, positives, no late, etc) and make sure IT IS IN WRITING...!!!!!!

    Word of wisdom... if they have been charged off accounts.. More than likely... they have been sent to or sold to a Collection Agency.

    BUT.. before jumping to conclusions.... First call and try to negotiate then you can go from there!

    Good Luck... keep us posted on what happens...
  4. NanaC

    NanaC Well-Known Member

    It is my feeling that validation is always the way to go before negotiating. First, get the entire facts in your hands (assuming they actually can provide them) and then move from there IF NECESSARY!
  5. MikeB

    MikeB Banned

    "Validation" does not apply to original creditors.
  6. NanaC

    NanaC Well-Known Member

    Maybe not in the same context but I have requested proof of the amount owed in detail....if your goal is to negotiate, you want as much information about your "foe" as possible. Three rules of negotiating: find out what your opponent wants, get as much background as possible, compromise. (Not sure if I'd call compromise a rule or a stage)..anyway...the point is to get as much info in your hands as possible before beginning the process.

    Just my humble 2-cents worth
  7. lbowman

    lbowman Well-Known Member

    Thanks for all of the responses. I'll keep them in mind as I begin the difficult task of rebuilding my credit.

  8. phinneous

    phinneous Member

    How about if you pay off the debt that you generated in full? Probably never crossed your mind....
  9. LKH

    LKH Well-Known Member

    How about you quit preaching to everybody Mr. phoneyass, er phinneous. Just out of curiousity, who do you think you are?
  10. bbauer

    bbauer Banned

    Although all of the posters who have given you ideas and suggestions are giving good valid advice, maybe a bit of a summary might help out.

    1. Original creditors are not subject to FDCPA as Mikeb has pointed out. That is correct, but most of the smaller ones probably are not aware of that and as a result follow the more or less common rules anyway. So acting as though you thought they were subject to FDCPA is not going to hurt you any. In any event, they are subject to it in the sense that any person claiming a debt may very well end up having to prove the debt in a court of law, so the end result is (could be) the same whether they are liable under FDCPA or not. As NanaC: so correctly pointed out, it never hurts to have all the information in your hands no matter how you intend to proceed or what the final outcome may be.

    2. Martygirl's suggestions are also quite valid when she suggests how to go about attempting to deal with original creditors. You should try to negotiate with them for payoff on the best terms possible in order to preserve/rebuild as much of your credit as possible. As phunny boy points out, we do have a moral obligation to pay our debts and should do everything we can to take care of our moral obligations, but in my not so humble opinion, once the creditor has shown that he has no intention of trying to deal with you in a fair and equitable manner, it's time to get out the brass knucks. At that point in time, the quicker they send the debt to a collection agency or a private label attorney, the better because then the creditor loses his protection under FDCPA.

    I am quite certain that someone will want to know how the original creditor loses his protection under FDCPA if he isn't subject to it. Quite simple. If he can't be made to comply with all the rules and regulations of FDCPA then he is protected FROM it and can pretty much do as he pleases in terms of collection activity.

    So, once all hope of reconstruction is over, do whatever you can to irritate them sufficiently to get them to send the debt to a 3rd party collector so that you can deal with it under FDCPA.

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