topic Re: PFD Question in Rebuilding Your Credit

PFD Question

Anonymous — Wed, 20 Mar 2013 13:29:34 GMT

In regards to a PFD letter, is there a percentage that you would recommend attempting to settle the debt for? Obviously 100% offer would be most likely to get results but is it worth it to offer 50-60%? Any suggestions?

Re: PFD Question

VirtualCuriosity — Wed, 20 Mar 2013 13:41:18 GMT

You will get many, many suggestions on this topic. However, I think it depends on the particular situation and who owns the debt. You are right, paying 100% would be the optimum, especially morally. But, from a personal business standpoint, 50% would be fair. I seem to read a lot that 25% is a starting point in negotiating. Again, I am not and expert on this subj. as I couldn't even get my PFD for 100%.

Re: PFD Question

Anonymous — Wed, 20 Mar 2013 15:41:47 GMT

Take into consideration how old the debt is and what the original balance was. If it is with a CA, still look at the original balance and not the interest and all the fees they add to it.

Re: PFD Question

Anonymous — Wed, 20 Mar 2013 15:46:11 GMT

Can a collection agency add a bunch of fees to the original debt? I have one CA that has a higher balance after OC shows they sold the debt.

Re: PFD Question

DaBears — Wed, 20 Mar 2013 15:49:30 GMT

@Anonymous wrote:
Can a collection agency add a bunch of fees to the original debt? I have one CA that has a higher balance after OC shows they sold the debt.

Yes they can

Re: PFD Question

Anonymous — Wed, 20 Mar 2013 16:01:00 GMT

@Anonymous wrote:
Can a collection agency add a bunch of fees to the original debt? I have one CA that has a higher balance after OC shows they sold the debt.

It depends on your state laws and the original agreement with the OC.

Re: PFD Question

VirtualCuriosity — Wed, 20 Mar 2013 16:01:54 GMT

@DaBears wrote:
@Anonymous wrote:
Can a collection agency add a bunch of fees to the original debt? I have one CA that has a higher balance after OC shows they sold the debt.
Yes they can

More specifically, and correct me if I am wrong...

Interest on a collection account may or may not be legal depending on if the account was assigned to, or purchased by the CA. A CA who is assigned the debt cannot add interest since they do not actually own the debt. If the CA buys the debt it is allowed to add interest. However, it’s not uncommon for the CA assigned a debt to add interest to the debt. I guess they figure they won't be questioned if it is allowed. So, at least question the actual amount of interest. The amount might only be allowed as part of the actual original agreement.

Again, I am still learning too, but this is how I understand it.

Re: PFD Question

Anonymous — Wed, 20 Mar 2013 16:03:36 GMT

@VirtualCuriosity wrote:
@DaBears wrote:
@Anonymous wrote:
Can a collection agency add a bunch of fees to the original debt? I have one CA that has a higher balance after OC shows they sold the debt.
Yes they can
More specifically, and correct me if I am wrong...
Interest on a collection account may or may not be legal depending on if the account was assigned to, or purchased by the CA. A CA who is assigned the debt cannot add interest since they do not actually own the debt. If the CA buys the debt it is allowed to add interest. However, it’s not uncommon for the CA assigned a debt to add interest to the debt. I guess they figure they won't be questioned if it is allowed. So, at least question the actual amount of interest. The amount might only be allowed as part of the actual original agreement.

Again, I am still learning too, but this is how I understand it.

It depends on the OC agreement and your state laws.

Re: PFD Question

CreditRepairGirl23 — Wed, 20 Mar 2013 16:19:59 GMT

I agree with what others said , it depends alot on the AGE and AMOUNT of the debt

My issues were plentiful but small. I always started at 50% or less and negotiated from there.

I did have a few ones less then 2yrs old , I started with 75% and all accepted without much back and forth.