Debt Collection A to Z: N is for Negotiation
Money owed? One party wants to get paid and the other wants the matter resolved while paying some amount but not necessarily the entire amount du. This results in a need to negotiate. In the world of debt collection the negotiation often takes the form of a discussion between collector and consumer and if an agreement is reached there should be written confirmation of the terms negotiated. The written confirmation should be generated by and possibly signed by the collector so the consumer has some piece of mind that a binding deal was made. It is perilous to operate under an assumption that the deal is done but no written confirmation exists. Good luck with that….
Another significance for negotiation is the industry of debt settlement and debt consolidation companies. I get calls and questions about these companies on a recurring basis. Unfortunately I have never received a very good explanation as to how they really benefit the consumer and too often I have seen horror stories of how consumers have come out worse off after having engaged such entities to assist them with their debts. The Attorney General of North Carolina has already pursued legal action and had some debt settlement companies shut down for illegal and unethical practices.
I do not want to dissuade anyone from making a decision that works for him or her but I will just state that one should do due diligence before deciding to pay money to a debt settlement or debt consolidation company. North Carolina law prohibits debt settlement companies from collecting advance fees for debt settlement services.
As always, I hope all works out with you and your situation. Feel free to share this post with family, friends, or others whom you believe may benefit from the information. If you have questions or need help reach out sooner rather than later. Be well my consumer friend.