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Posted in Auto Loans
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cathy2219

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car repo'd and sold....do i pay off balance monthly or wait till i can pay settlement?
collection agency is now calling with threats...willing to take $50/month on $12,000 balance....do i pay or wait till i have enough money to settle?

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Ignore Threats and Settle Later

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Ignore threats from the collection agency.  They will say anything to get you to pay.  DO NOT set up a payment plan with them and certainly DO NOT give them electronic access to any of your bank accounts. (they will steal your money)

Do not be intimidated by threatening phone calls or letters - there is almost nothing they can do since this is unsecured debt.  You can settle for pennies on the dollar.

1. Ignore their letters and phone calls until you have saved a few thousand dollars. 

2. Call them and offer to settle - they will most likely decline.  Hang up, keep saving, and continue to ignore them.

3. Eventually they will realize the only way they ever get paid is if they settle with you.  At that point, they will start to negotiate.

Do not attempt to settle until you have the cash saved to pay them.  If they agree to settle, THEY MUST PROVIDE THE OFFER IN WRITING.

Pay the settlement in full with a cashiers check.  DO NOT GIVE THEM ELECTRONIC ACCESS TO YOUR CHECKING ACCOUNT - THEY WILL WITHDRAW MORE THAN THE AGREED AMOUNT.

Good luck!

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