George Simons | October 19, 2022
Sometimes you just get tired of the debt collectors calling.Summary: Discover how you can pay your original creditor instead of a debt collection agency with SoloSuit.
Sometimes, despite our best intentions, a situation spirals out of control. That's especially true when it comes to repaying loans. You never meant to get behind on your payments. Now, debt collectors are hounding you night and day for money. But can you even pay your original creditor instead of a debt collection agency?
Navigating the world of debt collection alone can be difficult. Debt collectors operate by a set of rules that the average person knows nothing about. Let's discover whether you should pay your debt collector or if you can pay your original creditor instead.
Use SoloSuit to respond to debt collectors in under 4 minutes.
Can I Pay My Original Creditor Instead of a Debt Collection Agency?
They say that money makes the world go ‘round. That paradigm holds especially true in the US where our economy essentially runs on debt. About $14 trillion of consumer debt exists in the US. The average American uses debt to buy cars, homes, and even groceries.
Given those numbers, it's not surprising that at least 1 in 3 Americans have a debt in collections. So don't be ashamed. You're not alone.
Debt passes into collections after the borrower misses a few payments. The lender may not have the ability to track the borrower down or they may view it as a waste of money.
To recoup some of their losses, the original lender has two options. First, they can pay a third-party agency to collect the debt for them. Or they can sell the debt outright. Either way, the original lender no longer controls the debt.
If your debt passes into collections, you may face some serious consequences. It'll wreak havoc on your credit score. Collectors will harass you constantly, demanding money that you don't have. Finally, if a debt languishes unpaid for too long, the collector may sue you to recover it.
File an answer to a debt collection lawsuit with SoloSuit.
Even if a debt has passed into collections, you may still be able to pay your original creditor instead of the agency. Contact the creditor's customer service department. You may be able to explain your situation and negotiate a payment plan. The creditor can reclaim the debt from the collector and you can work with them directly.
However, there's no law requiring the original creditor to accept your proposal. Your best bet is to contact them as quickly as possible. Creditors are most willing to work with you before expenses begin piling up, usually within six months of passing your debt to a collector.
If a Creditor Sells Debt, are you Obligated to Pay?
Unfortunately, you're still obligated to pay a debt even if the original creditor sells it to a collection agency. As long as you legally consented to repay your loan in the first place, it doesn't matter who owns it.
You may be able to pay less than you actually owe, though. Remember, the original creditor is simply trying to cut their losses and extract some money from the debt. As a result, original creditors are generally more open to negotiations than collection agencies.
That means you have a bargaining chip. Since the original creditor is just trying to get something from your debt, you may be able to pay off your debt for less than you actually owe. Payments can often be made either in one large sum or smaller monthly installations.
But before you pay the original creditor, make sure they still have the rights to the debt. If they sold your debt to a collector outright, this won't be an option for you. Instead, you'll have to deal directly with the collector.
SoloSuit makes it easy to communicate with debt collectors.
Should I Pay a Debt Collection Agency?
If the original creditor has sold your debt outright, you have some choices to make. You may have heard that you should never pay a collection agency. The truth is a little more complex than that.
When to Never Pay a Debt Collection Agency
If your debt has passed into collections, it'll put a hefty ding in your credit score. But paying it off may not fix that. Paying a debt collection agency may do more harm than good to your credit score.
That's because actually paying your debt will lower your credit score. You heard that right. You can get punished for trying to pay what you owe. Luckily, there's a loophole.
Your credit report isn't a permanent record. Events that affect your credit score - from debt collections to bankruptcy - disappear from your credit report after seven years.
As a result, if your debt has been in collections for nearly seven years, you may want to avoid paying it. Once you pass that seven-year mark, your credit report will be clear.
When to Consider Paying
Sometimes, it's best to play the game. If you have the money and your debt just recently went to collections, you may want to pay it and get on with your life.
You shouldn't just roll over and pay, though. Contact the collection agency and ask them to write you a letter discharging the debt in return for payment. Then, have them send this debt to a credit reporting agency. This is the best way to get past a debt collection agency with your credit relatively unscathed.
Protect your credit score with SoloSuit.
Paying your debt will also eliminate the possibility of a lawsuit. If you thought the penalty to your credit was bad, a lawsuit is infinitely worse. Lawsuits involve court appearances and piles of paperwork. If the collector wins, they have a variety of options available to recover their money. They can even take money directly out of your paycheck!
If your debt recently entered collections, you probably have a lot of emotions. You may be stressed, confused, and unsure of how to proceed. Stop and take a deep breath. Try to negotiate with your original creditor. If that's not possible, try to settle things with the collector. Above all, remember to keep your chin up. You'll get through this!
What is SoloSuit?
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
Respond with SoloSuit
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
Start My Answer
>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate
>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance
What If I've Received a Letter From a Debt Collector?
If you've received a letter from a debt collector, the best way to respond is with a Debt Validation Letter. When a debt collector contacts you in any way, whether it's by phone or mail, you can respond with a Debt Validaiton Letter. This letter notifies them that you dispute the debt and requires they provide proof you owe the debt. They can't call you or continue collecting until they provide validation of the debt.
Get started with a Debt Validation Letter here.
How to Answer a Summons for Debt Collection in your State
Here's a list of guides for most of the 50 states.
All 50 states.
|
|
Guides on How to Beat Every Debt Collector
Being sued by a different debt collector? We're making guides on how to beat each one.
- Absolute Resolutions Investments LLC
- Accredited Collection Services
- Alliance One
- Amcol Clmbia
- American Recovery Service
- Asset Acceptance LLC
- Asset Recovery Solutions
- Associated Credit Services
- Autovest LLC
- Cach LLC
- Cavalry SPV I LLC
- Cerastes LLC
- Colinfobur
- Covington Credit
- Crown Asset Management
- CTC Debt Collector
- Delanor Kemper & Associates
- Eagle Loan of Ohio
- Educap
- Estate Information Services
- FIA Card Services
- Forster & Garbus
- Freshview Solutions
- Harvest Credit Management
- Howard Lee Schiff
- Hudson & Keyse LLC
- Integras Capital Recovery LLC
- Javitch Block
- Jefferson Capital Systems LLC
- LVNV Funding
- Mariner Finance
- Medicredit
- Michael J Adams PC
- Michael J Scott
- Midland Funding LLC
- Mullooly, Jeffrey, Rooney & Flynn
- Mountain Land Collections
- MRS Associates
- National Collegiate Trust
- NCEP LLC
- NRC Collection Agency
- OneMain Financial
- Palisades Collection LLC
- Paragon Revenue Group
- Pinnacle Collections Agency
- PMAB LLC
- Portfolio Recovery Associates
- PYOD LLC
- Reunion Student Loan Finance Corporation
- Revenue Group
- RSIEH
- Security Credit Services
- Sherman Financial Group
- Suttell and Hammer
- T-Mobile
- Transworld Systems
- Tulsa Teachers Credit Union
- UCB Collection
- Velo Law Office
- Velocity Investments
- Waypoint Resource Group
Win Against Credit Card Companies
Is your credit card company suing you? Learn how you can beat each one.
- Bank of America
- Capital One
- Chase
- Credit One Bank
- PayPal Synchrony Card
- SYNCB/PPEXTR
- Synchrony Bank
- Target National Bank
- Wells Fargo
Going to Court for Credit Card Debt — Key Tips
How to Negotiate Credit Card Debts
How to Settle a Credit Card Debt Lawsuit — Ultimate Guide
Get Answers to These FAQs
Need more info on statutes of limitations? Read our 50-state guide.
Why do debt collectors block their phone numbers?
How long do debt collectors take to respond to debt validation letters?
What are the biggest debt collector companies in the US?
Is Zombie Debt Still a Problem in 2019?
SoloSuit FAQ
If a car is repossessed, do I still owe the debt?
Is Portfolio Recovery Associates Legit?
Is There a Judgment Against Me Without my Knowledge?
Should I File Bankruptcy Before or After a Judgment?
What is a default judgment?— What do I do?
Summoned to Court for Medical Bills — What Do I Do?
What Happens If Someone Sues You and You Have No Money?
What Happens If You Never Answer Debt Collectors?
What Happens When a Debt Is Sold to a Collection Agency
What is a Stipulated Judgment?
What is the Deadline for a Defendant's Answer to Avoid a Default Judgment?
Can a Judgement Creditor Take my Car?
Can I Settle a Debt After Being Served?
Can I Stop Wage Garnishment?
Can You Appeal a Default Judgement?
Do I Need a Debt Collection Defense Attorney?
Do I Need a Payday Loans Lawyer?
Do student loans go away after 7 years? — Student Loan Debt Guide
Am I Responsible for My Spouse's Medical Debt?
Should I Marry Someone With Debt?
Can a Debt Collector Leave a Voicemail?
How Does Debt Assignment Work?
What Happens If a Defendant Does Not Pay a Judgment?
How Does Debt Assignment Work?
Can You Serve Someone with a Collections Lawsuit at Their Work?
What Is a Warrant in Debt?
How Many Times Can a Judgment be Renewed in Oklahoma?
Can an Eviction Be Reversed?
Does Debt Consolidation Have Risks?
What Happens If You Avoid Getting Served Court Papers?
Does Student Debt Die With You?
Can Debt Collectors Call You at Work in Texas?
How Much Do You Have to Be in Debt to File for Chapter 7?
What Is the Statute of Limitations on Debt in Washington?
How Long Does a Judgment Last?
Can Private Disability Payments Be Garnished?
Can Debt Collectors Call From Local Numbers?
Does the Fair Credit Reporting Act Work in Florida?
The Truth: Should You Never Pay a Debt Collection Agency?
Should You Communicate with a Debt Collector in Writing or by Telephone?
Do I Need a Debt Negotiator?
What Happens After a Motion for Default Is Filed?
Can a Process Server Leave a Summons Taped to My Door?
Learn More With These Additional Resources:
Need help managing your finances? Check out these resources.
How to Make a Debt Validation Letter - The Ultimate Guide
How to Make a Motion to Compel Arbitration Without an Attorney
How to Stop Wage Garnishment — Everything You Need to Know
How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
Defending Yourself in Court Against a Debt Collector
Tips on you can to file an FDCPA lawsuit against a debt collection agency
Advice on how to answer a summons for debt collection.
Effective strategies for how to get back on track after a debt lawsuit
New Hampshire Statute of Limitations on Debt
Sample Cease and Desist Letter Against Debt Collectors
The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah
West Virginia Statute of Limitations on Debt
What debt collectors cannot do — FDCPA explained
Defending Yourself in Court Against Debt Collector
How to Liquidate Debt
Arkansas Statute of Limitations on Debt
You're Drowning in Debt — Here's How to Swim
Help! I'm Being Sued by My Debt Collector
How to Make a Motion to Vacate Judgment
How to Answer Summons for Debt Collection in Vermont
North Dakota Statute of Limitations on Debt
ClearPoint Debt Management Review
Indiana Statute of Limitations on Debt
Oregon Eviction Laws - What They Say
CuraDebt Debt Settlement Review
How to Write a Re-Aging Debt Letter
How to Appear in Court by Phone
How to Use the Doctrine of Unclean Hands
Debt Consolidation in Eugene, Oregon
Summoned to Court for Medical Bills? What to Do Next
How to Make a Debt Settlement Agreement
Received a 3-Day Eviction Notice? Here's What to Do
How to Answer a Lawsuit for Debt Collection
Tips for Leaving the Country With Unpaid Credit Card Debt
Kansas Statute of Limitations on Debt Collection
How to File in Small Claims Court in Iowa
How to File a Civil Answer in Kings County Supreme Court
Roseland Associates Debt Consolidation Review
How to Stop a Garnishment
Debt Eraser Review