Not really sure where to put this question and I will try to be as concise as I can be. We have been dealing with years of carrying too much debt but always stayed current and had good to excellent credit until early this year. A declining side contracting business I relied on for debt repayment, a series of costly household emergency, and a car accident and protracted settlement process all contributed to falling behond on some payments and eventually going into default on a Prosper loan. The loan was sold to Velocity in August.
I received an email notification in early September which I accidentally deleted. I got a call this week from ACS which was trying to collect on this loan. ACS presented a payment offer which I can't make work (25% up front and $800 a month on a $15,000 loan). I want to pay this off but I asked if they could extend the terms. We are current on all of other bills and I have money to pay down our debt but I can't handle a payment that is more than tihe payment was originally. I asked if they could negotiate different terms and ACS said no, I would need to go to Velocity but they had no direct contact. Does anyone have any experience in a situation like this (charged off debt; different debt collector interfacing with the client? Do you have any advice? I will contact Velocity directly but I am not sure how to go about negotiating a more feasible sum. Thank you in advance for your help.
Many assignment contracts between an owner and a debt collector include restrictions that require any and all negotiations on or payments of the debt to made exclusively with the assigned debt collector. You will not know whether the debt owner can or will negotiate separately with you while they have an active contract with a debt collector until you have contacted them.
If the debt owner is willing to negotiate with you, then your agreement is with them, and not the debt collector.
You are free to offer any terms, and they are free to either refuse to negotiate, or to contract separately with you.
Do you recommend contacting them via a letter. Is there a specific format I should follow. The more I read, the more it sounds like speaking to a collection agency is a mistake. Does that same logic hold true when it comes to speaking to the owner of the charged off debt? Thanks.