Rules of Negotiating Debt

The smartest negotiating tactic thing to do before settling a “Recent” debt is to document (certified mail or email) a “dispute” as to the total amount of monies owed. Be precisely this general with this wording of specifics. Independently, a summary judgment (automatic/no trial verdict) requires that the defendant not had a previous dispute as to the alleged amount of monies owed prior to the inception of the lawsuit.


Call from a phone that is not your phone, unless you want them to have the power to call you back.


Inform them with witnesses on speaker phone that you do not give permission for this call to be recorded. Document witness and dates and times of calls.


Never admit or deny the debt – you are just discussing an option to “remedy the alleged debt”.


Never give them your social security number or address or place of employment – if they ask you to confirm these things for your identity– tell them you can give them a partial (2 numbers) and they can give you the other numbers after if they still need to confirm that it is you. Many times they are just trying to collect missing info.


Always claim that your relative/friend is paying. Never disclose/confirm that you have money.


Always pay off a collection/settle a debt in full with someone else’s money – here’s why. If your Uncle Joe sends a final settlement in full check to Citibank (your lender) that has stipulations in only the memo and/or in the endorsement portion of the check. Then Citibank applies that payment incorrectly (such as: to the balance of your debt, leaving you with a new balance/remaining debt) and not towards the account as a settlement in full. Then, Uncle Joe can sue Citibank. Also, Citibank will have no cause of action with your Uncle Joe to counter sue (Your uncle has no account or contract with Citibank other than his check). Citibank can attempt to sue you but they will be in a very precarious situation. Once Citibank accepts the check, they accept the terms described on the memo and/or endorsement section of the check.

Legal disclaimer: This content is not formally asserted as legal advice, cannot be construed as legal advice, and only an attorney within your state is authorized to give legal advice.

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