What to Say, and Not Say, to a Debt Collector

Most people shouldn't have a problem talking to a debt collector, but if you're uncertain of how to handle yourself over the phone, we're here to help.

Knowing what to say, or what you shouldn't be saying, is key to setting the foundation for a good settlement with your bank or a collection agency.

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I answer all questions in the comments section daily.

Michael Bovee started CRN in 2004 with a mission to provide people in need with detailed credit and debt help. The DebtBytes Channel is an extension of the CRN blog, and is dedicated to finding the debt relief option or strategy that works best for you.

[MasterArmedforces]

Hi Michael,
Let me start by saying that I think it super cool that you have this channel to help people with their debt problems. I got into some deep credit problems about 5 to 7 years ago and for the most part they have all aged out. I do have one account that was originally a Capital One credit card which has been sold off to Portfolio Recovery about 4 years ago($1, 097). It is still active and not set to be removed from my credit reports until 2019, so I would like to do something about it because the subcontract company that I work for part-time has some new requirements for their employees which require stricter qualifications regarding ANY delinquent credit accounts. So basically I will not be given any job offers from that company until I either pay off the account, or set up a payment plan to pay off the account (and I will need to provide proof in writing). Other than that company I used to get part-time work from I do not have any income from employment. I am going to school online and I am living off of my student loans (so obviously I assume that Portfolio Recovery is aware of this when they look at my credit report and see the GESLI(?) $23, 000 account loan).
I had not heard from Portfolio Recovery regarding the payment of this Capital One account in about 2 years, and I recently contacted them about setting up a payment plan (without letting them know that it was for a job requirement). The customer service guy that I spoke to told me that I needed to pay the full amount and that they would not offer me any extended payment plan, so I told him to go pound rocks because I did not have the ability to do that. Now today, out of the blue, I received a letter from them in the mail with some payment plan options. One was for the total payment of $878 to settle the $1, 097 debt, the next option was a plan which would have me pay them $78.00 for 12 months, and the third option was to pay $33.00 for 33 months. As I said I do not have any income but a friend has told me that he would loan me $500 if I can get them down that far for a total settlement. So my question is this, can I get them down that far and what can I do to ensure myself that I get a letter stating that I have paid that account off and have them say so to the credit bureaus? Thanks so much.

[chriskennard]

Great Information! This is my first time to battle this and need all the help I can.

[corycooldangerous]

I've heard that when a debt collection works on commission it's better to work with them at the end of the month because they have goals to meet. When they have goals, they need the money by the end of the month. So when trying to do this it's been difficult for me to get something in writing in time for me to get them the payment by the end of the month.

[LS-yfvu]

Thank you for this informational video!, I owed about $10, 900 in credit cards, i just finished paying all of them in three months, but i have a collection from capital one for $3490, I called them several times to settle for $1500 and denied me, they would only go for $3000. I live in NY, THANK YOU SO MUCH for your help!

[fascistanarchist]

Michael, AWESOME information and insight into the world. Keep it up!

[chrisbabcock]

Hi Michael—thanks for this informative video! It really helped.

[tammyhays]

I owe $2300 capital one. Received a court notice from the sheriffs office today. At the top of the court documents it does Say capital one but it is signed and from a Law office by the name of cooling and Winter which says they are capital ones attorney.

[christianbove]

It's an account I didn't realize hadn't been paid when I move out of the country. I'm moving back to the US and will be renting an apartment and don't want it to impact the possibility. I may just go ahead and pay it in full since it is the only negative thing on my report.

[erickwhitford]

1 Year behind on bal of $2500 small signature loan. Bank ended up writing off and zeroing out and sending to collector. Wakefield associates. I'm not sure what to expect but I would like to negotiate bal down tremedously.

[RRguy]

Best thing to say to debt collector is NOTHING!, Don't answer unknown callers on your telephone. Change your telephone number to an unlisted one and never answer ANY calls you don't recognize the number and even then you could be dealing with a spoofed caller ID incoming call.

[Jmhfl]

I see banks set up a percentage on the dollar of how low they can go (4:45), how do I know how low Banco Santander can go and can I break that threshold? I think everything is negotiable in life.... Isn't it better to get 20% vs. than nothing?

[capttug]

Wife made a Discover loan before she passed. She passed before first payment. I tried to make payments but Discover refused. They sold to DCM services. They (DCM) are now trying to collect but I don't want to talk to them. Should I consult an attorney? They will probably sue me. Original loan was $25k. I have the means to pay just not sure after discover sold the debt. I live in community property state and did not sign anything on that loan. Again, discover refused access to me and wouldn't let me pay.

[MaryWarling]

I was served by Velocity for a $7200 collection. Would you know what percentage they usually settle for before I call them? What would my best option be to get the best rate? Thank you so much. This is a great video!!

[dbuckner]

What if you signed a paper to pay 50 a month but have lost job since then, what can I do?

[kandicomarawski]

I got a bill in the mail yesterday for a doctor's visit from about 8 years ago that I had insurance for the time that is no longer active. This is the first time that I've been informed that this bill wasn't paid by the insurance. I don't know if I should even bother responding because currently the statute of limitations to take me to court is already all over but if I call and say anything about my other insurance I'm opening myself up to be sued if they are unable at this point so long after to get it from the insurance.

[voltd]

My issue with trusting any collectors is how do you tell a legit debt collector apart from a scammer who wants your information for malicious intent?

Example of this that I'm talking about are those people who impersonates the IRS and lie that you owe them money in order to steal your info..

It would be nice to tell real debt collectors apart from identity theft phishing scammers.

[draed]

I have been late for over 120 Days and this debt collector (National Systems Enterprise Inc) contacted me this month so not sure when they received it. The debt is for over $5, 000. I sent them a validation dispute letter asking for all the necessary documents. I am located in CT

[spacecoastbonsai]

Everytime I try to get them to email me some kind of agreement on whatever we negotiated for a settlement-they all claim they do not do that until after it is paid. So I recorded all conversations. Don’t know what else to do. I guess they send some type of receipt showing how much I paid to settle the debt and they will make sure it’s deleted on my credit report. I have one huge collection it’s ten accounts with one collection and it’s 7k. They said the best they could do is 5.4K. I tried so hard to say I’ll pay right now 4, 000 and they said nope. No negotiation

[tomarmstrong]

Got a notice from legal firm representing a debt collector that my charged off Citi card would be sent for legal proceedings in 10 days. I owed them $6000 from 4/2016. Called and asked what the status is and they immediately offered $4200 at 12 months and said they could go no lower based on the debt collection company policy. They also said that if I offered anything less, they'd need to check in with the debt collection company and noted that if that lower offer was rejected, the current $4200 offer might be rescinded. As noted in your video, they can see that my credit report notes that I'm paying 4 other cards monthly and not theirs, so they see that I can make payments of around $300. Questions: Is that what I should expect to pay given the circumstances? Should I offer something less and anticipate further negotiations? Are they BSing me about the potential of pulling the $4200 offer? There's a point that I could possibly repay in one payment, and another point which I could pay monthly for a short term. What would be a better and more acceptable offer to make?

[Keltonchanning]

My original charge was 71 dollars for a stained carpet at an apartment, and now it's been in collections and is now 7000 dollars. What should i do?