Using Restrictive Endorsements to Settle Debts

Information on restricted endorsements and UCC Codes on Negotiable Instruments

Debts are sold by the thousands everyday to third party debt collectors. Before you assume you owe it, there is caution to heed. You've probably made the mistake at least once of paying an old debt without first attempting to validate and or negotiate it! You may already know the drill- always validate first and settle later if necessary. Be sure you answer debt collector letters as soon as you receive a collection notice, see (Validation of Debt) because the law gives you 30 days to have the debt proven valid. Paying past due debts such as collection accounts and charge-offs need to be responded to in order to protect your rights. If you do not answer you are not protecting your rights and the court will assume that you owe the debt. In most cases when debt collectors are trying to collect an old debt YOU DO NOT OWE ONE PENNY! Here are some great pointers for avoiding costly mistakes.

If you do decide it is time to pay a collection item then pay it restrictively. If you do not you will end up with a "paid charge off" or "paid collection account" and that isn't your goal. Your goal is total removal.

Do I just avoid the collection agency?

No. Avoiding the debt collector is the worst thing you can do! The debt won't go away and if it's on your credit reports then you need to finalize the negotiation process with the collection agency to get it removed but. you need to go through the steps of disputing it with the credit bureaus while you are sending your Validation of Debt request to the debt collector because it may be removed with no further work needed especially if the collection agency totally fails to answer the investigation request from the credit bureaus. If it does come back as verified with the credit bureaus then wait for the collection agency to respond to your validation of debt request. Read more about Validation of Debts here. Upon finalizing the Validation of Debt process with the collection agency you can then decide if you want to pay it. You should send an offer to pay the debt (only once Validation of Debt is complete) in exchange for total deletion. This is called a restrictive endorsement where you first send a letter offering to pay the debt at a discounted amount with certain terms (i.e.: total deletion) and then follow up with a cashiers check and another letter advising that their cashing of this check constitutes the agreement (accord and satisfaction) and therefore they must follow the agreement to a "T9quot;.

Not all states offer acceptance of restrictive endorsements and some collection agencies will cash your check and continue collecting the debt. To avoid this pitfall, be sure to read your state and the creditors state UCC code to see what their rule is on "Negotiable Instruments". If they allow it then you are good to go however if they do not then there is no guarantee it will work. Also be sure to read through terms and disclosures if you are attempting to use one with an original creditor because many of them now add a section in their disclosures that they do not accept reduced payoffs with restricted endorsements and you have no rights to do so. Be careful!

The Restricted Endorsement

Normally you add a section of fine print to the back of the check stating "Cashing of this check constitutes your acceptance of my restricted offer. Any and all future claims for this debt are null". You can also add a notation on the front that says "restricted endorsement: cashing constitutes agreement". Don't send these types of offers to lockboxes because it will never be seen. That is why it is very important to send the offer first then follow up about 20 days later with the payoff. This way, the collection agency or creditor had plenty of time to reply to the offer with a yea or nay.

Do I look for it under state statute or UCC codes?

A restrictive endorsement will usually be found under your state's ucc codes. It is a "negotiable instrument" therefore when you are searching state codes to see the rule on if your state will take it or not, be sure to look at that state's UCC code rather than their civil codes. It does depend on the state so you may have to find both the civil text and UCC to know for sure. But, on average all restrictive endorsement language will be under "negotiable instruments" of the UCC code. Here is an example of the Nevada UCC rule on Restrictive Endorsements;

NRS 104.3206 Restrictive endorsement.

1. An endorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent further transfer or negotiation of the instrument.

2. An endorsement stating a condition to the right of the endorsee to receive payment does not affect the right of the endorsee to enforce the instrument. A person paying the instrument or taking it for value or collection may disregard the condition, and the rights and liabilities of that person are not affected by whether the condition has been fulfilled.

3. If an instrument bears an endorsement described in subsection 2 of NRS 104.4201 or in blank or to a particular bank using the words “for deposit,” “for collection,” or other words indicating a purpose of having the instrument collected by a bank for the endorser or for a particular account, the following rules apply:

(a) A person, other than a bank, who purchases the instrument when so endorsed converts the instrument unless the amount paid for the instrument is received by the endorser or applied consistently with the endorsement.

(b) A depositary bank that purchases the instrument or takes it for collection when so endorsed converts the instrument unless the amount paid by the bank with respect to the instrument is received by the endorser or applied consistently with the endorsement.

(c) A payor bank that is also the depositary bank or that takes the instrument for immediate payment over the counter from a person other than a collecting bank converts the instrument unless the proceeds of the instrument are received by the endorser or applied consistently with the endorsement.

(d) Except as otherwise provided in paragraph (c), a payor bank or intermediary bank may disregard the endorsement and is not liable if the proceeds of the instrument are not received by the endorser or applied consistently with the endorsement.

4. Except for an endorsement covered by subsection 3, if an instrument bears an endorsement using words to the effect that payment is to be made to the endorsee as agent, trustee or other fiduciary for the benefit of the endorser or another person, the following rules apply:

(a) Unless there is notice of breach of fiduciary duty as provided in NRS 104.3307, a person who purchases the instrument from the endorsee or takes the instrument from the endorsee for collection or payment may pay the proceeds of payment or the value given for the instrument to the endorsee without regard to whether the endorsee violates a fiduciary duty to the endorser.

(b) A subsequent transferee of the instrument or person who pays the instrument is neither given notice nor otherwise affected by the restriction in the endorsement unless the transferee or payor knows that the fiduciary dealt with the instrument or its proceeds in breach of fiduciary duty.

5. The presence of an instrument of an endorsement to which this section applies does not prevent a purchaser of the instrument from becoming a holder in due course of the instrument unless the purchaser is a converter under subsection 3 or has notice or knowledge of breach of fiduciary duty as stated in subsection 4.

6. In an action to enforce the obligation of a party to pay the instrument, the obligor has a defense if payment would violate an endorsement to which this section applies and the payment is not permitted by this section.

(Added to NRS by 1965, 823; A 1993, 126&)—(Substituted in revision for NRS 104.3205)

You should always push for a Paid as Agreed Rating. Your final goal in negotiating your credit rating is to get the creditor to list your credit rating after the settlement as "Paid as Agreed" or "Account Closed - Paid as Agreed". Anything other than this listing will have a negative effect on your credit report. Creditors make their profits by collecting from their customers, not by reporting negative credit information. Because creditors realize this, they will often agree to delete any negative listing upon settlement of the debt. You have to realize that creditors won't try to ruin your credit rating as a personal vendetta. It's strictly business. If it pays to collect from you and restore your rating to perfect, they will do this. Talk to them in terms of money, not principals or morals. Something along the line of "I know you would love to receive the $3,000 I owe you, but it will not help my credit report if you can't change my rating to 'Paid as Agreed'. All I have is $3000 and I will pay it to other creditors who will agree to change my credit rating in writing."

Collection agencies will always agree more readily to delete the negative listing than banks or credit cards. Why? They can change their rating, no problem, but you are still probably stuck with the original creditor reporting you late. And who cares if you have a "Paid As Agreed" collection account: no matter what the rating, every collection account is a negative mark. It's no skin off their nose to change it, and of no use to your credit. You need to get the collection agency to agree to remove their listing entirely from your report and have the original creditor change the rating to "Paid As Agreed". At the very minimum, you are within your legal rights to demand the removal of the collection account from your report.

Some collection agencies will tell you they have no power over what the original creditor will do regarding your credit. To some extent, this is true. However, both the collection agency and the creditor want their money. If collection agency gets paid, so does the creditor, therefore it is to their advantage to cooperate. And baloney if they tell you they don't know how to get a hold of the original creditor: did the account magically appear on the collector's desk? No. The collection agency was hired. Explain to the collection agency if they can get a written agreement from the creditor, you will pay them their money, or you will pay a more cooperative creditor with the only money you have left, and they get nothing.

Remember, though, not all collections result from credit cards. Doctor's bills cannot appear on your report. But collections resulting from these accounts can. In the case of such collections, there is no duplicate negative listing, since the original creditor is not allowed to put a listing on your account, so this collection may legally remain on your report. Many creditors, though, have an agreement with the credit bureaus that they will not allow a negative listing to be deleted upon settlement. While this is true, the creditor can just tell the credit bureau that they reported your rating inaccurately, not that it was due to settlement. Anything a creditor reports, a creditor can change. If this wasn't the case, creditors couldn't change erroneous information they may have placed on your account by mistake, and find themselves in trouble with the FTC.

In most credit organizations, there are dozens of people with the authority to make changes on the credit report. Larger creditors, such as huge credit cards or banks will require more pressure before they will agree to delete a negative listing, but virtually every creditor will acquiesce with the right amount of persuasion.

If you have to accept an imperfect credit listing as part of your settlement. You may find that some of your creditors are willing to hold out longer than you are before agreeing to delete the negative listing from your file. It may seem that they are unwilling to delete the negative listing under any circumstance. Once again, let it be said that every creditor will eventually give you what you want if you speak to the right person, are patient and persistent, and make the right offer. But if you are on a time-line, and your attorney can't get them to agree to full deletion, you have a couple of other options:

List the account as "Paid9quot; only. You may counter-offer that the creditor list the account as "Paid9quot; rather than delete it altogether. This is a true indication of the status of the account and many creditors will concede and agree to this wording. A "Paid9quot; status is still very negative for a collection account or an account that will show "Paid Charge-off" or "Paid Repossession." You should insist that the account show "Paid9quot; only and that all other negative notations (such as "Charge-off,9quot; "Repossession,9quot; late notations, or "Collection9quot;) are deleted at the same time. A simple "Paid9quot; notation on a regular trade line is neutral and should not hurt your credit.

List the account as "Settled9quot; only. You may counteroffer that the creditor simply list the account as "Settled9quot; rather than delete it altogether. "Settled9quot; is an inherently negative listing but not as negative as "Paid Charge-off." Don't agree to a "Settled9quot; listing until you have exhausted all other possibilities. "Settled9quot; will still trigger a credit denial. You should only agree that the account show "Settled9quot; if all other negative notations (such as "Charge-off9quot;, "Repossession9quot;, late notations, and "Collection9quot;) are deleted at the same time. If you agree to a "Settled9quot; notation, you must continue to work hard to delete the notation through the credit bureau dispute process.

List the account as "Paid Charge-off" or "Paid Collection" or "Paid was 30-, 60-, or 90-days late." This will be the creditor's first choice, and your last choice, of what to place on your credit report once you have paid. These notations are almost as damaging as showing the same debt unpaid. It is very common, though, for an account to be deleted (through credit bureau disputes) once it has been paid. The creditor now has no compelling reason to keep the negative listing on your report. For this reason, it is still usually a good idea to settle even if the creditor won't budge on deleting or positively modifying the negative listing.

You will most likely be able to find proof that the debt is unverifiable and not have to pay it at all. Collection accounts are sold two and three times so odds are good that the records are missing. You owe it to yourself to totally understand and use Validation of Debt before settling any debts.

Finally, before sending any payment on a bad debt be sure to read our complete explanation on Accord and Satisfaction and look for a lot of resources online regarding this subject. Don't take ours or anyone else's word when considering this big financial decision. Be your own best investigator and use caution and common sense. Keep copies of everything and send all correspondence by certified mail- return receipt requested.

For More information or to contact a Debt Collector Defense Specialist CLICK HERE.

settle debt collection

This page discusses debt settlement for defaulted federal student loans. The US Department of Education has very strong powers to compel payment of defaulted student loans, including garnishment of wages and Social Security benefits, income tax refund offset and blocking renewal of professional licenses. Federal student loans cannot generally be discharged in bankruptcy unless the borrower can demonstrate undue hardship in an adversary proceeding. The availability of income-based repayment, which reduces the loan payments to an affordable level, makes bankruptcy discharge of federal student loans very rare. But the US Department of Education does occasionally settle debt for less than what is owed.

Consider Income-Based Repayment First

If all you want is an affordable repayment plan, ask about income-based repayment. This bases the monthly payment on a percentage of your discretionary income, which is the amount by which your adjusted gross income exceeds 150% of the poverty line. This is an affordable amount for most borrowers, since it is based on your income, not the amount you owe, and often is less than 10% of gross income. If your income is less than 150% of the poverty line, your monthly payment is zero under income-based repayment. To obtain income-based repayment, you may need to rehabilitate your loans first. This may mean paying a higher monthly payment for 9 months before being able to switch to income-based repayment.

The monthly payment under income-based repayment is lower than the monthly payment under administrative wage garnishment for low and moderate-income borrowers and for borrowers with larger families. The monthly payment under income-based repayment is 15% of discretionary income (10% of discretionary income for new borrowers on or after July 1, 2014). The monthly wage garnishment amount is up to 15% of disposable pay, which is the amount that is left after deducting any amounts required by law to be deducted, such as federal income tax withholdings. Wage garnishment amounts may be lower, as the borrower must be left with weekly earnings after garnishment that are at least 30 times the Federal minimum wage ($7.25 an hour since July 24, 2009). (Social Security benefits may be garnished up to 15%, but the garnishment is typically reduced if the remaining benefit payment is less than $750.) But even so the income-based repayment amount will usually be lower than the wage garnishment amount.

Before Seeking a Settlement

When examining collection charges, keep in mind that the collection charges of 25% of the amount paid to principal and interest represent 20% of the total payment. (P = C + p + i, where P is the payment, C is the collection charges, p is the principal payment and i is the interest payment. Since collection charges are expressed as a percentage of principal and interest payments, C = 25% * (p + i). That implies that P = 5 * C, from which C = 1/5 of P or 20% of the payment.) Occasionally collection agencies get this calculation wrong and have collection charges that are 25% of the total payment instead of 20% of the total payment (or equivalently, 25% of the payments to principal and interest). This can lead to an outstanding loan balance that is as much as 12% too high if the error has been in effect for several years.

Nature of the Settlement

A settlement is a settlement, not a new payment plan. When seeking a settlement, offer a lump sum payment for satisfaction of the debt in full.

The US Department of Education will want to receive full payment of the settlement amount within a single fiscal year. The federal government's fiscal year runs from October 1 to September 30. In most cases the US Department of Education will want the settlement to be paid in full within 90 days of the date of the settlement offer.

In some cases the US Department of Education will allow a defaulted borrower to pay part of the settlement amount in monthly installments, but these installments will generally be paid within the same fiscal year.

Debts that cannot be Settled

The US Department of Education will never settle debts that involved fraud. It will also not settle any debts for which a judgment was obtained against the borrower except in the most unusual circumstances.

Amount of the Settlement

The US Department of Education will never settle for less than the default claim it paid for a FFELP loan or the principal balance on a Direct Loan. Settlements are almost always for much greater amounts.

The US Department of Education is also unlikely to settle debts at less than the current recovery rate. The recovery rate is the percentage of disbursements on defaulted loans that are recovered and includes interest and penalties in addition to the payments toward the principal balance.

The US Department of Education reports a 122.1% recovery rate on defaulted loans in the FFEL program and a 110.6% recovery rate on defaulted loans in the Direct Loan program, according to the Supplemental Materials from the President's FY2011 Budget. This does not mean that the government recovers more than is owed, as some defaulted borrowers assume, since interest continues to accrue even after the loan is in default. (To set the recovery rate in context, total payments on a 6.8% Stafford loan represent 138.1% of the original balance with a 10-year repayment term, 183.2% of the original balance with a 20-year term, and 234.7% of the original balance with a 30-year term.)

Thus the US Department of Education will usually seek a settlement that is at least 115% of the loan balance or the default claim paid at the time of the default. They may be willing to accept less if the default was very recent.

The US Department of Education will also consider how much they will be able to recover without a settlement by considering the cash flow they have been receiving from wage garnishment and offsets of income tax refunds. They will seek a settlement offer that is at least the net present value of all the future payments they expect to receive from the defaulted borrower. This suggests that a borrower would be best to argue for a settlement based on the impossibility of ever paying back the full amount even with wage garnishment and the withholding of income tax refunds.

A good starting point for a settlement negotiation is to offer to split the difference between the current amount owed and the amount of the original default claim.

The private collection agencies used by the US Department of Education have the authority to accept three types of standard settlements without prior US Department of Education approval:

  • Waiver of collection charges (pays only the current principal balance and accrued but unpaid interest)
  • The current principal balance plus half of the accrued but unpaid interest
  • At least 90% of the current principal and interest balance
One of the last two options will usually result in the smallest compromise amount. If the borrower offers less than these standard compromises, the collection agency must seek US Department of Education approval.

The collection agencies also have the authority to offer a handful of non-standard compromises to borrowers each quarter. (The number of such nonstandard settlements per quarter is at most 6.) Such settlement offers are initiated by the collection agency, not the borrower, and do not need to be approved by the US Department of Education. However, the collection agency is required to compensate the US Department of Education for the difference from the net amount the US Department of Education would have recovered under one of the three standard settlements. In effect, the collection agency is forgoing all or part of its commission (or in some cases, taking a net loss). Such nonstandard compromises are used only in the most exceptional circumstances and are extremely rare. In almost all cases the collection agency will seek approval from the US Department of Education in order to preserve its commission.

Get the Settlement Offer in Writing

Before you agree to the settlement or make any payments, get the offer in writing. Make sure that the settlement indicates that it will satisfy all the debts in full. It's generally a good idea to have the settlement agreement reviewed by an attorney.

In some cases borrowers thought they were settling a loan in full, but were lied to by a collection agency who applied the payments to the debt without settling it. Or the borrower had both private and federal loans with the same lender and the lender settled just the private student loans, not the federal loans.

After you make all required payments as part of the settlement offer, you should receive a "paid in full" statement. If you do not receive such a statement, then the debt might not have been fully satisfied. The most common cause is a reversal of a prior payment, such as an injured spouse claim on an income tax refund offset. The borrower must make up the difference before the settlement will be effective.

It is important to have the settlement agreement in writing and a paid in full statement, since the unpaid portion of a settled debt can sometimes resurrect itself years later. For example, a lender may reconcile its records with the US Department of Education's National Student Loan Data System and "correct" the balance on your loan. If you have signed paperwork, it makes it much easier to prove that the debt was settled in full.

Start by calling the current holder of the loans. This may be the guarantee agency if your loans were in the FFEL program, or it may be the US Department of Education if your loans were in the Direct Loan program. You'll end up speaking to the servicer of the loans. Sometimes you'll get referred to the collection agency that has responsibility for collecting your defaulted loans.

When talking with the collection agency, keep in mind that they have a financial incentive to extract as large a settlement as possible, since they operate on commission. They may try for a larger settlement even though they have the authority to agree to a lower settlement. They may be focused more on collecting their commission than on reaching a reasonable settlement. You will need to be firm and repeat yourself multiple times. Also keep in mind that if you are asking for a non-standard settlement, they will have to get approval from the US Department of Education before agreeing to the lower settlement amount. Finally, remember that the collection agency has more experience than you in negotiating settlements.

The collection agency will not make or consider an offer to settle the account until after they have discussed your ability to repay the debt. The collection agency may ask for proof of your inability to pay the full amount owed, such as pay stubs (or a recent unemployment benefits letter), tax returns, W-2s, 1099s and bank account statements. You are not required to report an inheritance or other windfall that you have not yet received unless you are asked about pending inheritances. But if you have already received the money, it may affect the amount they offer as a settlement. If you are asked how you expect to pay for a lump sum settlement, the simplest answer is to say that you don't know yet.

If you are getting nowhere with the collection agency (e.g., they refuse to offer any settlement amount), try calling the US Department of Education's Default Resolution Group at 1-800-621-3115 or TTY 1-877-825-9923 or sending email to [email protected]. You can also try calling the FSA Ombudsman at 1-877-557-2575 or sending email to fsaombu[email protected]. The FSA Ombudsman is not involved in negotiating settlement amounts, but sometimes they can help clarify a situation. If your loan is held by a guarantee agency, call 1-800-4-FED-AID (1-800-433-3243) for their contact information.

Note that the Fair Debt Collection Practices Act (FDCPA) does not apply to US Department of Education employees, but it does apply to the employees of the private collection agencies that are hired by the US Department of Education to collect defaulted loans. The FDCPA bans "abusive, deceptive and unfair debt collection practices" by debt collectors. US Department of Education rules bans private collection agencies from using harassment, intimidation or false and misleading representations to collect an account. If a borrower exercises their rights against a collection agency under the FDCPA, the US Department of Education will recall the account from the collection agency and either collect it itself or assign it to a different collection agency. The US Department of Education may also recall the account if a borrower makes a complaint against a collection agency but does not exercise their rights under the FDCPA.

Clearly, most defaulted borrowers are not in a position to negotiate a settlement because they lack the means to pay a settlement. However, sometimes defaulted borrowers can obtain a loan from friends and family (e.g., the borrower's parents might obtain a home equity loan to pay off the borrower's loans). This will save the borrower money if the settlement reduces the balance of the loan and/or waives the 25% collection charges. Other common possibilities include receipt of an inheritance, getting a bonus from one's employer or winning the lottery.

Offsets of federal income tax refunds can count as part of the settlement payment if they occur after the date of the settlement offer and before the 90-day deadline for paying the settlement amount. Offsets that post after the settlement is paid in full will be refunded to the borrower. (Generally it takes 3-4 weeks after an account is settled in full before the US Department of Education notifies the US Treasury to halt the offset of future federal income tax refunds.)

The US Department of Education requires that settlements be paid by a cashier's check, money order, certified personal check or credit card.

Debt Settlement Tips & Advice Canada - Company Scams, Warnings and Tricks

In the end, many people end up viewing the actions of many for-profit debt settlement companies as little more than a debt settlement scam to trick people into signing up for debt settlement programs so that they can collect fees. Some of the common misleading tactics and tips on what to watch out for are below.

Misleading Debt Settlement and Consolidation Companies

Claim to Be Government Approved

Saying that a debt settlement program is “government approved” is very misleading. That’s the same thing as a store selling “government approved” apples or toilet paper. The government does not approve debt settlement programs any more than it approves carrots and yogurt. Just because the government puts a few regulations in place for an industry does not mean that it approves what a business sells or how they sell it.

Stop Collection Calls & Negotiate Debt Settlements

Fallacious Protection from Creditors

The only thing debt settlement companies can do to protect you is to try to negotiate your settlements before your creditors take you to court. They can also suggest that you stop the collection calls by writing letters to your creditors and request that they only contact you in writing. Other than this, there is no legal protection for you if you chose to work with a debt settlement company. They also don't tell you that creditors can and usually will pursue you for full payment of your debts. If you chose to work with a reputable non-profit organization that creditors trust, then they are more likely to work with you and put off any legal action or collection activities.

Claim a Successful Track Record Solving Credit Card Debts

Any debt settlement company can “successfully” negotiate easy settlements for clients. Some people even do this on their own. However, just because a company has “successfully” negotiated “thousands” of settlements here and there does not mean that they have “thousands of successful clients.” If someone has 5 credit card debts, but the debt settlement company only manages to settle with one or two, does this make a “successful client”? We don’t think so. We believe that a successful client is someone who legitimately needs debt help, all of their debts are settled and then the client is given every opportunity to learn how to manage their finances better so that they don’t end up in the same situation a second or third time.

Just because a debt collection company is legally licensed to operate in the United States doesn’t mean that it is licensed to operate in Canada. Most American for-profit debt settlement companies are not licensed in Canada. Most provinces require debt settlement companies to obtain a “debt poolers license”. However, many American debt settlement companies are avoiding this legislation by never touching their client’s money directly. They get their clients to save up their own money and then send a bank draft to their creditor once a settlement is negotiated. However, these companies will still debit their clients accounts for up to four different types of fees.

Premature Debt Settlement Fees - Provincial Consumer Protection

The problem with dealing with an unlicensed debt settlement company is that you have little to no recourse if things don’t work with them. Their contracts also typically allow them to collect fees from their clients without providing any service in return. If you sign up with one of these companies make sure you read your debt settlement agreement carefully. Do they make you any promises or guarantees of service in exchange for the fees that they will charge? If they are going to charge you fees and then not promise to deliver specific results, why would you work with them? Reputable organizations will only charge a client after a settlement has been completed. You can easily check with your province’s consumer protection office to see if a company is licensed to operate in your province.

What Do Other People Say About Their Debt Settlement Program and Services?

Any debt settlement company can portray themselves and their services as being they world’s best kept secret, but what do other people say who have dealt with them?

  • Check out the Better Business Bureau. What is the company’s rating? Can you trust a debt settlement company with an “F” or “D” rating? The Better Business Bureau has even publicly warned Canadians about some debt settlement companies.
  • Do a Google search. Are a lot of people upset after dealing with this company? Has anyone filed a lawsuit against them? Has anyone else posted their research about this debt settlement company online?
  • If the company claims to have a Canadian office, then check it out. On Google Maps you can switch to street view and check out an office in a distant city. A company may claim to have an office in a certain city, but it is really only a post office box with numerous other companies using the same address.

Another thing to be careful of is that a number of debt settlement companies use different names from time to time. So if you can’t find much information on a company, it could be because it is using a different name now. A lack of information about a company online should probably be viewed as red flag.

There are also known risks with a debt settlement, like a negative impact on your credit rating. Protect yourself and become informed on why a settlement may not be right for you.

Why Debt Consolidation and Debt Settlement Do NOT Work!

Why debt consolidation and debt settlement do NOT work when you cannot afford to pay. Watch or visit Alternatively, call 508 796 5101.

You need to ask yourself, if I cannot afford to pay my credit cards, how can I afford to set that debt settlement money aside for a future lump sum settlement?

Very few people can forgo the purchase of, or payment for at least some monthly necessities, for that long, to save enough money for a lump sum settlement.

Learn why banks have a great deal of difficulty actually documenting individual consumer credit card debt to court standards, to win judgments against consumers who owe . . .

And why that reality, makes threatening debt collectors easy to defeat with the proper written communications. My name is Mel Thompson. I have helped many people get control of credit card debt they could not afford to pay. Visit my website and blog for more information.

The really neat thing I learned . . . was how little resistance it takes to frustrate debt collectors and collection attorneys. One or at most a few properly worded CMRR letters will make them decide they do not want to spend any more time with us.

What happens when we frustrate one debt collector or collection law firm attempting to collect a credit card debt from us, is that that debt gets passed onto another debt collector who starts afresh with us. Believe it or not, this is a sign we are winning the battle. Each time we hear from a new debt collector, we just send them the same old letter CMRR. With my six credit card debts this process happened about every three to six months for the first two years. Then for the next two years it happened once or twice a year until, finally, no more debt collection attempts from anyone.

The conventional means of credit card debt relief are all full- or partial-payment solutions.

There is one conventional means of non-payment. And, that is bankruptcy. What is the worst that can happen to you? The answer is bankruptcy. But, bankruptcy WILL stop a court judgment, if things should ever get that far.

Here is why non-payment without filing bankruptcy such good path to credit card debt relief.

Make credit card debt relief by non-payment a strategic decision.

If you can do this rationally leaving your emotions -- fear, guilt, feelings of helplessness -- out of it, then you can greatly reduce your suffering and worry from your credit card debt problems. Sometimes, large businesses are forced not to pay less important creditors. Just make this a rational, business decision.

settle debt collection

Settle debt collectionReceiving Letters or Phone Calls from Wakefield & Associates?

Do not ignore Wakefield and Associates, or any debt collector. If you do, the debt will only grow and Wakefield will continue to pursue you with legal action. But, there is hope. You have rights and options before and after being served a legal Summons for Debt Collection.

Can Wakefield & Associates Garnish Wages?

It varies by local law but a creditor such as Wakefield & Associates can garnish your wages, although some exceptions apply. But you don’t want it to get to that. You need to make a decision whether you can pay the debt in full or in part.

Our Goal is Get You Back on Track

The goal is to protect you from Wakefield and Associates (and all debt collectors) while we get you out of debt at a significantly reduced cost, without having to file bankruptcy. When you enroll in our debt settlement program, you’ll be able to see that there is light at the end of the tunnel.

  1. Do you owe $30,000 or more in unsecured debt?
    • Credit card debt
    • Revolving charge accounts
    • Bank lines of credit not secured by your home
  2. Have you experienced economic hardship?
  3. Can you make a monthly payment of at least 3% of your total debt?

If your answer to most or all of these questions is yes, then debt settlement could be a great option for you. We’ll go over your specific circumstances, where you sit with Wakefield and other collectors, and determine whether you’re a good candidate for our debt settlement program.

Trident is one of the very few debt collection settlement companies in the nation that has been accredited by the Better Business Bureau and with an A+ BBB rating. The fact that Trident has been accredited is your assurance that our company adheres to the highest ethical standards. The company was founded and is operated by an experienced bankruptcy attorney with a strong reputation and proven track record going back twenty years.

Call us today at 303-872-8492 to speak with a debt collection settlement attorney and learn how you can get protection and savings with Wakefield & Associates.