Hounded by a collection agency and want to pay? Why to hire a lawyer
- Peter Schneider
- Mar 29
- 3 min read
Many people go through a difficult time of life where it isn't possible to keep up with your debts, and then things get better and they want to settle their obligations.
By this time folks are often already hounded by a collection agency. If they've filed a lawsuit most folks understand the benefits of hiring a lawyer, but if they are just hassling you with calls you might not understand what a debt defense attorney can do for you.
#1 - we will help you pay less. We typically take debt negotiation cases for 10% of the amount owed, and we typically negotiate down inside the statute of limitations debts by 30-40%.
By knowing who the original creditor is and who the debt collector is, we'll probably be able to tell you up front what discount to expect. If you negotiate with them yourself they will use you against yourself. They train their agents Let them offer a term first – never bid against yourself!
#2 - If you want to pay out of statute of limitations debt, first we will tell you it is out of statute of limitations, and if you still want to pay it, we will help you settle it without restarting the statute of limitations.
#3 - We will keep you off the phone with the debt collectors. Debt collector phone agents don't care how much you can pay without wrecking your life. They often start out pretending to be friendly, but eventually they will pressure you with anything from threats to mind games to giving them your emergency fund or shorting other creditors to over-committing to a payment plan that isn't sustainable. This is an example of what negotiating with them yourself might look like.(taken from actual debt collector training):
Your reply should inform the debtor that while you cannot accept this offer, perhaps there is a way for you to accept $100/month over five months if they can make a $500 down payment now as a sign of good faith. This allows you to give them the arrangement they are looking for while also getting half of the bill in the door at that very moment. They may jump at this chance or they may come back with another offer, but at least you are moving in the direction you need the negotiation to go instead of the other way around. Always be working to shorten the term and increase the payments. For instance they may agree to increase the term to $200/month instead. This kills three birds with one stone – it increases the initial payment, it increases the monthly payment and it decreases the amount of time it will take to satisfy the debt in full.
Did I mention the head games debt collectors are trained to play?
If you’ve found some common ground through the course of your negotiation, don’t be afraid to hold onto an emotional bond you may have formed.
Your attorney will insulate you from their head games and pay for him or herself by almost certainly negotiating a better deal than you can. We want what is best for you, not what is best for them.
#4 - We are immune to legal threats and we can evaluate any they make about you. Collection agencies are famous for threatening to take "legal action" if they don't get what they want. They hope you will fear the worst interpretation of "legal action", but we won't. From knowing who the original creditor is and who the collection agency is, we will have a good idea if they are willing to sue you, and if they do, how do they handle defendants willing to put on a defense. Most collection agencies who sue expect you to be in the 95% of defendants who don't hire an attorney, don't show up for court, and they get a default judgement on.
We can't make them not sue you, but a Washington State debt defense attorney can put you in their 5% who hard to steamroll, giving you the best chance at getting the best deal and the best restart in your new life.
The thoughts, opinions and musings of this blog are those of Peter Schneider, a consumer advocate attorney at Northwest Debt Resolution, LLC. They are just that, his thoughts, opinions and musings and should be treated as such. They are not legal advice. Do you have more questions? We would be happy to answer your questions:
Bankruptcy and debt questions:
Peter Schneider
206-800-6000
Robocalls and Telephone Consumer Protection Act questions:
Nathen Barton
206-800-6000
Fair Debt Collection Practices Act (FDCPA) questions:
Peter Schneider
206-800-6000
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