Beware Collections Agents Making Great Offers
It is not uncommon for someone who has already entered debt review to be called by one of their credit providers (or a collections agent who says they work for one of your credit providers). The collections agent may then start to talk to you about your debt and how much they would like you to pay toward that debt.
When told that you are under debt review they may say that they do not see that or that no payments are showing through the debt review and that they would like to talk to you about making a payment.
They may then offer you a deal that sounds better than that arranged through the debt review. The deal may sound a little too good to be true.
‘The deal may sound a little too good to be true’
Here is why you should be very, very careful of what happens next:
Debt Review is a legal process done via the courts. Consumers who enter debt review pay attorneys to represent them in court.
The person calling is ignoring the entire legal process which has already begun. They are not asking to speak to your attorney or to have their attorney present during a discussion. They may purposefully try to convince you that including your attorney or Debt Counsellor or even the courts is a bad idea. Ask yourself: why would they do that?
If debt review is a legal process and it is organised through courts why is this person trying to avoid the courts?
A Better Deal
Often the person on the phone will make a proposal that on the surface seems better than what you know you currently have through debt review. Does it hurt to accept such a deal?
Ask yourself: Who pays this person? Whose side are they on? Are they on your side or the side of the credit provider who is chasing you for money? Would they really offer you a “better” deal if it didn’t benefit them and the credit provider more than it benefits you?
Ask yourself: Who pays this person?
Give that some thought and consider: Many collections agents work on a commission basis. This is why they often seem desperate to get you to agree to an arrangement right away rather than involve your attorney and the credit providers attorney.
If the credit provider is able to make such a good offer then it would be great to have this offer in writing officially made to your Debt Counsellor who can put that offer in front of the court with the help of your attorney (who you have already paid for).
Ask them to send the offer in writing to you, your attorney and your Debt Counsellor. Then, hang up and wait to see what happens next. Perhaps you will be able to benefit from this nice deal. At least then you will know that it is genuine and not a scam or a trick to get you to leave the legal protection of debt review.
Don’t be fooled into separate negotiations outside of court with debt collection agents without the help of your attorney or Debt Counsellor. Some offers are sadly just too good to be true.