debt buyers

Negotiating with Debt Buyers

If you fail to pay a debt, the creditor might sell it to a debt buyer. Debt buyers purchase delinquent debts from original creditors for pennies on the dollar. They then attempt to collect the debts to make a large profit. If you’ve been contacted by a debt buyer about a delinquent debt, understanding how debt buyers operate will give you a major advantage when it comes to negotiations. In this article, we discuss how to negotiate with debt buyers. 

How Debt Buyers Work

Debt buyers buy thousands of debts at a time from original creditors at deeply discounted prices. Debt buyers make their money by buying debts cheaply and then attempting to collect on those debts. Even if a debt buyer collects only a fraction of what is owed on a debt, it can still make a significant profit. 

How to Identify a Debt Buyer

The simplest way to tell if a debt buyer has purchased your debt is to read all correspondence you receive regarding debts that you owe. When a debt buyer purchases a debt that you owe, it will normally send you a letter informing you that it is the new owner of the debt. You can also check your credit report to confirm this. 

How to Negotiate with a Debt Buyer

When you receive correspondence from a debt buyer about a delinquent debt, the first thing you should determine is whether to deal with the debt buyer at all. Depending on several factors, including whether the statute of limitations has expired for your debt, you may be able to simply ignore the debt buyer. However, in order to take this route, you should be certain that you are in a legally sound position to do so. Ultimately, the only way to determine whether you should ignore or negotiate with a debt buyer is to consult with a debt collection lawsuit attorney. Assuming you have an experienced attorney on your side, below are some tips for negotiating with debt buyers: 

Settle the Debt at a Discount

If the debt is relatively recent, and you have the means to pay it, you probably should consider doing so before the debt buyer sues you. However, it is highly recommended that you hire an attorney to review the matter first. Often, an attorney can help you settle the debt at a discount. 

Beware of Entering a New Payment Arrangement Unless You Can Complete All Payments

Finally, when negotiating with a debt buyer, you should avoid entering into a new payment arrangement unless you are confident you can make all the arranged payments.  If you only make some of the payments you will still be in danger of a lawsuit and you will have reset the statute of limitations.  Otherwise, a discounted payment plan that you can complete is a good way to resolve the debt.  

Contact a California Debt Collection Lawsuit Defense Attorney 

If you’ve received correspondence from a debt buyer in California, you should have an experienced debt collection lawsuit attorney in your corner. At the Fullman Firm, we have nearly fifty years of combined experience helping consumers like you fight back against debt buyers. We are well aware of the tactics debt buyers use to harass and intimidate consumers, and we take pride in holding them accountable for their actions. When you come to us for help, we will explore all available options and work with you to develop an effective strategy for your situation. Please contact us today to arrange a consultation.