How to Negotiate With a Closed Credit Card Company
Negotiating your debt with a closed credit card company can afford you the ability to satisfy your debt for less than you owe. One obstacle to negotiation is locating the entity that purchased the defunct businesses debt accounts. The company responsible for the closed company debt will likely get in touch with you. After verifying that they are legitimately holders of your debt you can successfully negotiate yourself to a favorable agreement.
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Instructions
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Fond the contact information for the company that took over the closed credit card company's outstanding debt. The company will likely have already attempted to contact you in order to settle the debt. Obtain a credit report and secure the phone number and address for the company from the report.
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2
Contact the company handling the closed company's owed debt and find out what account number has been assigned to you. You will need the account number to quickly be able to discuss the status of your account with representatives of the company.
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Find out the total balance you owe for the account. Ask the representative how much of the amount you owe comprises collection fees and other penalties.
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Ask the representative how paying the debt will affect your credit rating. Rarely, a company will have charged off a debt owed after it was sold to a third party for collection -- in which case, paying the debt will have no beneficial affect to your credit rating.
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Offer to pay the debt in one payment, if you can, as long as you are able to do so without paying the fees that have been added to the original amount owed.
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Request to repay the debt in installment payments. The format of the repayment plan is negotiable, but it is likely that the company wants to establish the shortest terms and biggest payments possible. Choose a plan with the longest terms and lowest payments. At a later date, offer to shorten the terms and increase the payments if the company will write down the total cost of your debt. For example, a person who has $1,000 outstanding debt and $200 fees added can choose a 12-month, $100-per-month payment plan. Later, she can offer to pay the debt in four payments provided the company adjusts the total amount owed to $800 or $200 each payment.
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Request the arrangements of any final agreement to be sent to you in writing.
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Tips & Warnings
Do not pay a company with whom you have had no previous dealings without verification in writing. Check the Better Business Bureau to make sure the company is a legitimate representative of the closed credit card company before furnishing any payments.
