Legal Question in Credit and Debt Law in Pennsylvania

Dealing with a Collection Agency

I cosigned a loan for my sister that has now been sold to a collection agency. The amount seems high to me (even with fees) so I asked for validation of the loan balance. They offered me a settlement amount instead, but said if I insisted on getting this additional information, then I had to pay the full amount and would not be eligible for the lower settlement amount. Is this a normal practice? How much can I negotiate with a collection agency to reduce the settlement amount even further?


Asked on 3/15/08, 5:36 pm

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Dealing with a Collection Agency

You asked about dealing with a debto collector.

Debt collectors are generally the lowest form of life and are strictly regulated. A debt collector cannot threaten you or even make an offer in settlement in order to avoid your right to validation of the debt.

There are many circumstances which may make the debt uncollectable. Further, the debt collector just wants money. They will negotiate at any point in time that they think it will suit them to do so.

My strong suggestion is that you bring this matter to a lawyer and let the lawyer handle it. The money spent on the lawyer should be made up in the debt and frustration that you won't have to deal with.

Regards,

Roger

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Answered on 3/18/08, 4:09 pm


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