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05-21-2009, 04:37 PM
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#1 | | I contribute to threads in the offtopic forum
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| credit card collection agencies
My bank recently transferred my card to a third party collection agency. What is the best approach to deal with them? Should I still try to clear my debt? Is interest higher with them?
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05-21-2009, 05:06 PM
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#2 | | Ubereem Mod
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Best idea was talk to your credit card company - make a payment plan/reduce interest rates/payments. THAT was probably your best bet. Now it's 3rd party -
So, now you're going to be in a hole for the next 7 years regarding your credit.
Solutions : (if you want to resolve now -)
1. Look at your bureau, see what they've done first - (If nothing, then go back to your bank, sometimes these 3rd party are acutally an offshoot of the bank.)
2. first off talk to them - because they bought the debt from the bank for a low low price to collect from you. You have room to discuss with them.
3. make up a payment plan
4. pay debt.
Should I still try to clear my debt :
If you plan to stay in Canada, come back after you grad/work in the next 10 years. probably best bet.
If you're moving away, never coming back - (truthful advice) i'd fuck it. and tell them never to call me again.
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05-21-2009, 06:35 PM
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#3 | | I contribute to threads in the offtopic forum
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i called my bank, and they said they no longer handle my card and has transfered it to a third party collection agency. is there a way to get them to take it back?
and with collection agency, what are the downside or difference between owing them and the bank? do they still charge interest based on the credit card you applied for?
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05-21-2009, 07:24 PM
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#4 | | HELP ME PLS!!!
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^ think of the bank as the first strike. after them they send it to the collections - strike 2. If ya dont pay them, they'll break your kneecaps with a slugger. J/K =)
I'd suggest talking with them, discussing options and then if you still want to pay it off (GTR is right about leaving canada - if you plan on that, screw it. dont. not even student loan debts) go visit a credit counselling center. Keep in mind that you will still owe and will still have to pay. If you're in the hole for a lot...like 200k or something on minimum wage, go for bankruptcy. If it's small, a few grand etc, get the interest knocked off to zero and pay. The exception is with PC mastercard. they never get rid of the interest. I believe the lowest they'll go is 1 or 2%. All the others will agree to hold interest.
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05-22-2009, 01:21 AM
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#5 | | Ubereem Mod
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Originally Posted by aznlangjai i called my bank, and they said they no longer handle my card and has transfered it to a third party collection agency. is there a way to get them to take it back?
and with collection agency, what are the downside or difference between owing them and the bank? do they still charge interest based on the credit card you applied for? | Nope, it is off their hands, so you won't be able to get them to take it back.
The biggest difference is, their job is to COLLECT - they'll be bugging you, calling you , letters - nice sounding professional threats basically.
No they can't, i don't believe so. They are there to collect that amount of what you owe.
What happens with a lot of these agencies, they buy bad debt from banks like you for like 25cents to the dollars(example). So A) banks get some money back. B) They make money and a lot of it, if you pay it off back in full, therefore. I suggest you tell them you're poor, got no money, willing to pay back, say 50% or smething of the total over X amount of time. If you're lucky and don't have an Asshole thats smooth and knows his shit, dealing with your debt. You're looking good to pay partial.
That all being said, you have to get a written reciept/letter and shit AFTERWARDS that you paid off your debt so it gets removed off your Credit Report which (by now is fucked over anyways) but you can start rebuilding it.
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05-22-2009, 01:23 AM
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#6 | | Ubereem Mod
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All this being said btw aznlangjai, you royally screwed yourself over for the next 3-5 years or so, to borrow money.
I hope you have 1 more credit card you can rebuild your credit with.
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Originally Posted by Culture_Vulture sometimes I like to use kindergarten art class scissors to cut my pubes | | |
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05-22-2009, 02:14 AM
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#7 | | I contribute to threads in the offtopic forum
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Originally Posted by Gt-R R34 All this being said btw aznlangjai, you royally screwed yourself over for the next 3-5 years or so, to borrow money.
I hope you have 1 more credit card you can rebuild your credit with. | i do, but i hope they haven't send it to the collection agency yet either.
i have one more question. how do i know they will hold their words for, say i pay off a partial amount of what i owe? what if at the end they turn back and said that i have to pay the full amount? can they scam me out like this?
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05-22-2009, 07:17 AM
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#8 | | OMGWTFBBQ is a common word I say everyday
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^Its the law.
If they took partial payment, the debt is considered wipe off.
You can google more detail, since my Bus 393 (business law) was taken 4 years ago.
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05-22-2009, 07:24 AM
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#9 | | I bringith the lowerballerith
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+1 on GTR, although I wouldnt really suggest you just fuk it, even if you dont plan to come back/work/stay in Canada ever again..
These types of things always come back to haunt you in more ways than you know it!!
+1 on the bank not taking it back. If the bank hands your debt to a 3rd party, it is out of their hands and your credit more than likely is already screwed up.
Best advice is, try to reach a settlement with the 3rd party (through yourself, 3rd party agencies, or a lawyer) and get this debt cleared off.
Because if you dont, and you do stay in Canada, the chances of your future loan, which I'm sure you will have (such as student/car/mortgage/business), gets to slim to none.
So, work out a deal, and get it cleared. Never a good idea to just leave it as it is.
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05-22-2009, 09:11 AM
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#10 | | I contribute to threads in the offtopic forum
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oh and one more thing, can i still use my card while paying my debt off?
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05-22-2009, 09:35 AM
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#11 | | OMGWTFBBQ is a common word I say everyday
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^stop using your credit card until you figure out a way to better manage your finance.
If you did, then do so
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Originally Posted by Fei-Ji haha i can taste the cum in my mouth | There is a time when you have to sig a post.
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05-22-2009, 09:51 AM
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#12 | | In RS I Trust
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When it's at a collection agency you are able to settle your debt below what you owed of course. If it's already showing on your credit file at the collection agency it will be there for 7 years from last payment.
they are not going to garnish your wages just reflecting bad credit which you already have with the R9 credit rating that alrady shows.
If you do settle is make sure you get a settlement letter and proof of the payment to cover your own ass. If you can't settle it and just make payments make sure you get records so nothing falls through the cracks.
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05-22-2009, 09:55 AM
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#13 | | I contribute to threads in the offtopic forum
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Originally Posted by murd0c When it's at a collection agency you are able to settle your debt below what you owed of course. If it's already showing on your credit file at the collection agency it will be there for 7 years from last payment.
they are not going to garnish your wages just reflecting bad credit which you already have with the R9 credit rating that alrady shows.
If you do settle is make sure you get a settlement letter and proof of the payment to cover your own ass. If you can't settle it and just make payments make sure you get records so nothing falls through the cracks. | do i get the settlement letter and proof of payments after i pay off my balance in full or how does it work? just request it?
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05-22-2009, 10:36 AM
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#14 | | In RS I Trust
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Originally Posted by aznlangjai do i get the settlement letter and proof of payments after i pay off my balance in full or how does it work? just request it? | settle it don't pay it in full since it's already in collections. tell them you will settle it 80cents on the dollar or something and they should take it. said for a letter stating they will settle it and once you have that pay them and ask for a receipt and a letter stating the debt has been settled for XXX ammount.
then you will be fine and wait 7 years for it to be gone. The advantage of doing it right away there is a good chance its not showing on your credit file as in collection so I would get on it quick if it was just placed.
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05-22-2009, 10:57 AM
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#15 | | OMGWTFBBQ is a common word I say everyday
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^True and good advice.
Although OP will have a very difficult time explaining to the loan officer why there is a 7 year blank in his borrowing history.
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Originally Posted by Fei-Ji haha i can taste the cum in my mouth | There is a time when you have to sig a post.
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05-22-2009, 01:24 PM
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#16 | | In RS I Trust
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Originally Posted by wouwou ^True and good advice.
Although OP will have a very difficult time explaining to the loan officer why there is a 7 year blank in his borrowing history. | they don't need to know why theres a 7 year blank. They don't care. Haveing one bad debt wrtie off credit card is not a issue just as long as you have other current good standing credit you should be fine.
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05-22-2009, 01:26 PM
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#17 | | In RS I Trust
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and just to let you know Equifax won't report anything on your credit file thats under $100 principal balance as well  | |
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05-22-2009, 02:05 PM
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#18 | | OMGWTFBBQ is a common word I say everyday
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Originally Posted by murd0c and just to let you know Equifax won't report anything on your credit file thats under $100 principal balance as well | that's actually quite helpful
but my point was if you had a R9 on your file, you wont be able to get any decent credits for a long time, and even after 7 years, since you dont have a good history of clean credits, the loan officeers will look deeper into the credit history and/or figure out that at one point you messed up your credit big time.
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Originally Posted by Fei-Ji haha i can taste the cum in my mouth | There is a time when you have to sig a post.
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05-22-2009, 02:33 PM
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#19 | | Ubereem Mod
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Originally Posted by aznlangjai oh and one more thing, can i still use my card while paying my debt off? | No- the card should be inactive/cancelled.
Once they sell the loan to a 3rd party. It's written off their books.
Common sense =) really.
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Originally Posted by Culture_Vulture sometimes I like to use kindergarten art class scissors to cut my pubes | | |
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05-22-2009, 04:09 PM
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#20 | | HELP ME PLS!!!
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so you didn't even make the min card payments? ($10 a month or whatever it was)
not paying off the full amount every month is bad enough, not being able to pay the min amount is just stupid.
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05-22-2009, 06:41 PM
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#21 | | I contribute to threads in the offtopic forum
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Originally Posted by johny so you didn't even make the min card payments? ($10 a month or whatever it was)
not paying off the full amount every month is bad enough, not being able to pay the min amount is just stupid. | i don't think every credit card minimum payent is around $10 regardless of your balance. correct me if i am wrong.
on the other hand, i decided to call in to my second credit card (the one that hasn't been sent to the collection agency), and they said they're willing to settle it for about 50% of the owing balance, and i have til monday to come up with half the money. so this leaves me wondering, a settlement will leave a hole in my credit as well for the next 7 years right?
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05-22-2009, 08:21 PM
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#22 | | Ubereem Mod
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nope, it won't become public record, on the bureau.
Just "written off, or closed off - account paid". somethng along those lines.
It's way better then going collection, possible might not get R9s.
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Originally Posted by Culture_Vulture sometimes I like to use kindergarten art class scissors to cut my pubes | | |
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05-23-2009, 02:42 AM
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#23 | | (╯°□°）╯聽不到 ╮(°□°╮)
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im askin this for a buddy actually
so what if the debt has been paid off, thru a collection agency
now he doesnt kno if its in R9 or not
but he was approved of a car finance by honda with a $5000 debt
he has no credit card as the bank has revoked his card already
the debt has been paid off already, been around 2 months, is it worth his effort to apply for a credit card?
all his other bills have been paid on time and been on time 100% of the time tho
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05-23-2009, 04:22 AM
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#24 | | I contribute to threads in the offtopic forum
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Originally Posted by Gt-R R34 nope, it won't become public record, on the bureau.
Just "written off, or closed off - account paid". somethng along those lines.
It's way better then going collection, possible might not get R9s. | Thanks for all the help and advice GTR.
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05-23-2009, 07:36 AM
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#25 | | Ubereem Mod
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Originally Posted by darthchilli im askin this for a buddy actually
so what if the debt has been paid off, thru a collection agency
now he doesnt kno if its in R9 or not
but he was approved of a car finance by honda with a $5000 debt
he has no credit card as the bank has revoked his card already
the debt has been paid off already, been around 2 months, is it worth his effort to apply for a credit card?
all his other bills have been paid on time and been on time 100% of the time tho | Depends on a number of factors - how long the debt was ago and so forth.
Best bet just go go equifax and order a copy. see where you stack anything below 650 - probably forget it
OR he can go to Capital One, they approve everything.
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Originally Posted by Culture_Vulture sometimes I like to use kindergarten art class scissors to cut my pubes | | |
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