Paying Collections - Dave Ramsey Rant 

They can't do that if the information is accurate.

I got a question for you..f you settle can they still delete the account? I’m being told it has to be the full amount in order to get it deleted

@Nat Giovanni can you help me out? I'm being scammed by a medical bill

Can I ask you, why do they tell you that they don’t give you a letter of a agreement to remove the collection off your report if you pay it ?that’s not fair

@@cosmiclotus7501 I tried to answer your question but I do not know what you are asking. Are you asking why we don't send letters saying we will delete your account? If that is your question, I do not send accounts to the bureau. If I did then I would send an email, prefer not to send letters since they take a while to send and cost money. If that was not your question then please clarify.

Didn't your supervisors listen to you on the phone and reprimand you for your practices?

Did it work?

How are things going

@@jimiange5252 They aren't obligated but will do it to get their money. Plenty of people have done this and it works and is fair. If you pay the debt you should not be unjustly punished for years to come.

Yes!!!!! Just learned this info!

once the debt collector agrees. wats the best way they can send me this information in writing? email or snail mail? Please advise!

@@Daychacon87 Snail mail. Always have a paper trail! They can send email too. You can always ask for an email to have 2 records but definitely snail mail. If they can send you a debt letter thru snail mail, it shouldn't be a problem to send a payment agreement letter via regular mail.

@@Daychacon87 Snail mail. When you get that, keep a hardcopy of the agreement and the payment in your records. It’s proof of the agreement, which is to accept a specific agreed upon amount, within a certain timeframe and the agreement to remove the item from your credit report.

Not all debtors offer a settlement.

@@dennissmall8407 If they want that money they will especially if it's been a while. If the person isn't willing to negotiate with you say cool I'll call back and speak to someone who is willing to work with me and get that money.

@@rell127 how about just hanging up and call again to get someone different. It was a tactic I did when I tried to return an item. Another person could be more reasonable.

@@ricardoalvarez7144 That's exactly what I'm saying.

@Nocapper Not if you make sure you have it in writing.

I would close that account and put your money elsewhere.

🖕

Matthew Irizarry now its 213

Now 216

now 222🤥

I just got a past due balance of 342 from OAC

Dannetta Thomas -- How can you tell if their mouth is moving? Aren't we talking with them on the phone?

if your lips are moving then you lie lie lie - meghan trainer

I love that one!!!

@Bobby Shupinski he's not a debt collector so he doesn't count lol

Pretty much half of the world.

no...Most collection agencies are actually legit businesses and they dont really buy debts anymore, instead hired by the original company to help collect the debt

Did you request in writing that if paid in full that the debt will be remove from your credit report?

@@stevenruiz465 no but the debt did come off

Anono mous so I accidentally just did this today and then found out about it. I took all my money out of the checking account that I gave them access to and I’m changing my direct deposit ASAP. Should I still leave the amount I originally agreed to pay in there?

@@jasminep8634 In my opinion to leave the amount originally agreed upon is a good idea, if you know you will be making payments on a regular basis. But!! After that payment has gone thru, block that company from making any more withdrawals from your checking account. Do this with your banking institution. Then pay the debt collector using a pre-paid debit card. Like Dave said make sure you have an agreement in writing otherwise wait until you do. Don't allow the debt collector to bully you, nor talk you into anything that will place you into a financial hole.

@@jasminep8634 Did you give them your debit card number to charge? or did you give them a route number and account number? or did you give them actual access to your account? If the debit or route/account numbers then they cant just withdraw all they want, if you actually gave them your info then thats just idiotic

@@jasminep8634 Yes, leave the amount. YOu entered into an agreement. Most legitimate companies will not take more than that amount. It also doesn't matter if you move accounts. That only delays things. If they have a judgment against you, they can literally send that to every bank until they find the one that sticks. It takes time, but eventually you'll get caught.

The court allowed them into my bank account I forgot about the judgement

@Jarocha Calo Well because it was their fault (Sprint) I didn't pay. So I ignore them now.

If not charted, not done :))

Your profile pic 🤣

same lol

That’s great man, good for you!

Nunya Biznis why not email

Because it's not paper. Paper trails are hard to lie about, but you can mess with intangible, electronic communications. If they want money and they are not willing to spend money on postage, paper and an envelope, they can go pound sand. Ink and paper is the only thing I will trust.

Nunya Biznis, all you do is print the email. It should have all the same letterhead, addresses, phone numbers, fax, email address as a snail mail letter does. Yes, it is the same as snail mail. We've signed many contracts and legalities through email, very few legal matters don't qualify. As long as you've gotten all the correct information, the names you've spoken with via phone/email/ correct information in the correspondence, that's all you need in most cases.

I ask them to fax it to me

Thats legally acceptable?

Bingo. Also, under Contract Law, a third party has no lawful right to even try to contact you when the debt is sold. Once it's sold, it's payed off.

How does it affect your credit?

@@trybal007 wrong

@@bizman83 Ok. So the many times i've done it never actually happened. Great analysis. lol Go read a book.

@@trybal007 debt buyers have the write to contact you. Its within the fdcpa that governs there practices. If they weren't allowed to call then it would be an out right ban. Not only are they allowed to contact you they can contact anyone that they believe can give them "location information" including family members, neighbors, coworkers, friends, associates, anyone. I'm well versed on practices of debt buyers and 3rd party collections. I have to renew my licenses every year. So once again to your point that they have no lawful right to contact you, you are wrong. If they weren't allowed to contact you then there would be no need for the CFPB or the fdcpa. Sorry for the 1 word response earlier, I was attempting to be polite. Hopefully this explains my position a little further that you are wrong wrong very wrong. But you be well

If they ask for your electronic banking that is a red flag if you give them your pin they will commit wire fraud and bank fraud they will overdraft your account and steal all your money. Never use electronic banking or send mail order checks that is illegal and the FDIC and the SEC will be calling you about illegal transactions from your account. If you pay a collector cashers check or debit card no electronic banking and no checks because that is illegal.

Cashier's check

DDB How do you go about paying to delete an old debt?

@@RenePerez-pu4cj you take them to court I'm guessing

If u do not pay... They will sue u

Pay to delete is also a bad idea. The Vantage algorithms changed.

@@brotendo What do you mean?

How about when you have been gouged by inflated medical services?

What do I write to dispute

You can't in good conscience "dispute" a debt you know is yours. That makes you just as bad as them. Pay what you spent or make a deal, but don't try to act like it's not yours just because it's with a CA. That makes you just as dishonest as them.

@@passionategypsies7529 username confuses

Tee Jaye If a company sells your debt at a fraction to debt collectors, they can then write off the difference. Example: You owe ABC company $100, but your account defaulted. Collection company calls ABC to buy the debt for $10, ABC collects $10 and write off $90. I agree that debts are transferable.

Thanks for info.

Kemmy Mullins ummm there small claims courts where they can rap all the debt into one. Barclays bank does it for millions of account all the time. They win by default cause people think they wont. Paying your debt is actually good.

That's what I said depending on size of debt. Most debt owed is to small to bother with.

ForWhomTheGameTolls what of you're no where near 60 in age? Any advice for this?

Do most CC companies do "paid in full" or "pay for delete"?? Thnx

What happens to any money left when you die? Dont the collectors get it first?

@@teeremraf5394 Well, if you didn't have a will, your estate goes into probate.

@@ApartmentKing66 right. But then, don't your creditors get first bite at whatever's in probate?

Did your credit score go down? I heard it goes down a lot of you don't

i believe that as well

Diana Parisi - they can be the worst! My eye doctor took 4 months to submit the insurance correctly. LOL!

roxcyn ha....the doctor I went to lied to me saying they are in network when they weren't...so 4 months later I got a bill from them...the office manager was useless and it was impossible to get in touch with billing department I had to tell them I'm calling attorney general so they finally paid the bill for me.

Diana Parisi - good for you. The billing is the worst. On a different bill, I've had to file BBB complaint because they refused to bill my secondary insurance. Needless to say. I don't go to their hospital anymore.

Medical is the absolute EASIEST debt to remove. I went on Credit Karma and disputed every medical debt on my credit report. I disputed the debt as inaccurate and demanded an itemized list of charges. Here's the thing. They bought that debt from the Dr/hospital. They have no idea what the charges are for and, due to Dr/patient confidentiality, they can't find out. Instant removal. Cheers!

@@jeffnoble1218 Whoa this works? I have a medical debt the same way you did. Thing is I dont know what it is for. Could be inaccurate, but I WAS in and out of hospitals that year, but I was fully covered at the time, so idk. So just dispute it and say its inaccurate?

Actually in 2017 a bill was passed that when a business hires a collector, or sells the contract to a collector then the contract itself is also transferred. You can say "but but but" all you want to a judge but ever since 2017, most businesses that loan out money (banks, credit cards, ect) will have in the agreement that if you do not pay within 3 months then they are allowed to hire or pass off your debt over to a collector. Just call your bank and ask them and they will tell you, its not a secret.

How do you ask them to remove it then?

Due to privacy reasons you will need to foward this comment over there

@@RamseysolutionskitgmaiIcom. I am unclear what your reply means

Just for privacy reasons and basically because of RU-vid’s new policy, fwd your questions to my, e - mail

@RamseysolutionsgmaiIcom__ clearly you did not actually read my comment. I did not ask a question nor reveal any personal information. I simply made a comment on my own personal experience. I clearly understand how debt collectors work as well as the law.

@Nenethegreat W bologna ** btw you don't have to pay someone you didn't sign a agreement with bud

I tend to agree. If I take out a loan with John, I don’t owe money to Kenneth just because I didn’t pay John.

@m.a. torres - *they're (they + are)

That’s why when you get the call from the collection agency and they ask for you in your name you never admit your name. It’s the same procedure when it comes to insurance depositions and police detectives questioning you about a crime.

Cant collect if they dont have your number or address. And never answer a call that you dont know. Calls cant even go to my voicemail.

So I should basically just change my phone number then since it will be ringing off the hook nonstop?

Debt collectors will keep the debt active though. They are known for doing this sort of thing, that way the debt is always “current”

@@SakuraaaHarmony they cant keep it active beyond the date the account was closed.

Eddie Aviles I did this. I can say it didn’t work. I got two liens for doing so.

U r wrong... Its good that u pay to collections.... Or else they may sue u..... N if u pay... They empower u with a debt relase letter n in ur cbr it shows paid to cleections n u will not get another crwdit line

DJ iMike yea, if they put a lien on u then you will have to pay. But most companies don’t go the lien, judgement, garnishment rout. That sucks!!!

scott2228 That’s what I thought would happen to me, but the complete opposite happened. Eh, my debt, my responsibility. On top of that, I ended up paying more in interest and other charges.

@@DecisionExecutiveLLC Never pay collections you have no agreement with the collector.

How would you get it deleted?

Sometimes the lender deletes it I have a card in collections right now and the agency told me the lender updates and deletes it off account.

Yessss pay for delete or wait 7 years to dissapear

​@ShavedDream that's a lie. They are obligated to report facts. Your credit issues are facts. Sorry.

​@@stevepd1 no it still stays on the report it will show paid in full or settled for less, but it will still be a collection just that it's paid, so that's why you need them to delete it, pay to delete in writing, that's the whole point of getting the deletion so it not a collection account even if it's paid

Nothing could be more false

Well I paid a three year old debit from collections and it was removed a month later. And since I have paid off a couple more they also have been removed and my score has risen a lot in one year.

@@nucomers1 The removal doesn't happen all the time. So what's the point on paying those debts if your credit score took the hit.

@@bernysoto2756 You may be right but I'm just speaking on my own situation.

They are mostly pointless.

Yes This really makes sense. And I thought I was repairing my credit, until I realized that an old apartment debt that I disagree with would actually undo all my progress. So I have to restructure my finances, life, and all just to deal with this old shady collections. Very annoying.

F C

You were lucky. It’s usually risky paying over the phone.

@@barbararepko4824 why ? You have your banck statement that shows you did that payment

@@unknowndriver6652 mainly because you might lack proof of any agreement made on the phone, because you you don't have it in writing. A less scrupulous collector might try again in say 2 years time and while you may have proof of the payment, you don't have proof of the agreement that payment has settled the debt completely.

You still owe the debt, so the moral thing to do is to bring to to some legitimate agreed-upon settlement.

how come? could you explain please?

@@doyle7281 When you pay an old debt you start the process all over again with your credit. Example: You have unpaid debt from 5 years ago so it will be dropped from your credit in 2 years. But you pay it off so the bad debt is going to let's say 'refresh' on your credit report so now instead of waiting the remaining 2 years you now have this on your credit report for the next 7 years. You might as well hire a credit restoration company to repair your credit instead.

@@autobotrock4789 Lexington law helps remove up to 4 negative reports per month as far as i know, the service is expensive but 100% worth it if you'd like to clear up some room to improve your credit.

so who should be paid? After all if I owe a debt Id like to pay it minus all the interest and stuff

why don't you come work for me? I'll agree to pay you $25.00 per hour for 40 hours a week or $52,000 per year. and after your first two weeks on the job I will only pay you $1400.00 instead of the $2000.00 you earned and we agreed to. wouldn't you be mad for chopping of 30%? same concept to me. why not pay the debt in full? you must be raising some real upstanding kids there momma bear. stick to serving porridge instead of offering financial advice.

@@jayallen1334 But when banks like bank of america, wells fargo, goldmansachs get bailed out or get sued for ripping off the tax payer you dont say nothing.

@@gervas4935 Not sure I get the connection. Momma Bear is talking about reducing the contract she signed and removing the negative entry from her credit report. I simply suggest to pay our obligations instead of trying to play lets make a deal. Again, if you work 40 hours you expect to be paid for 40. If your employer said they will pay for 30 hours you'd be upset. same concept to me, pay what you owe.

@Larry Jennings I tried getting a credit card yesterday from my local bank, got denied. They said I was late on a payment from a collection agency I never even heard of. I’m with you man.

@@iLeaveMeanCommentsSometimes lol this is exactly why you DO have to pay them if it's in fact your debt, and the bank seems to think it is so it probably is. Your debts get passed around. And you will never automatically have a contract to pay a collector, that doesn't mean it's not your debt. It's not really going to hurt you if you don't plan on buying anything but try buying a house without paying off your collection debt. If it's Not your debt, then you probably gave out your ss# and other information to telephone scammers. Basically it's your debt either way.

I guess I would have no reason to pay a collector since I could buy whatever outright. While my credit is ok, I like to pay debts i accrue especially if i made money with the transaction process with cash back already. I had a medical bill almost go to collections but it was an error the biller didnt submit the bill to my insurance within 90 days as is required to receive settlement. That took like 6 months to figure out and my insurance company called the biller after I talked to the billing company executive and I never heard from them again.

Can't have two negative marks on your credit from one debt. It's one debt. If it goes to collections then original debt should go away.

@@stophate2023 Yes and No, It is only 1 mark but that 1 mark will keep lowering your credit until its paid.

Rey Santiago terrible advice. Half of it isnt even true. Hes lying. It isnt even legal for collection companies to do that. You can sue for millions if they do. I cant believe he just lied like that

RagingTiger how do I do that?

SydneyStyled you can do it yourself directly with the credit bureaus or hire a reputable credit repair company

Can I still dispute them if its my debt?

SydneyStyled yup, sometimes they file them incorrectly or with missing information and if they cannot provide that info they will be deleted

RagingTiger okay so how exactly do I dispute them

Stop abusing and twisting scripture

I dealt with debt collectors before I just got my check and the surplus is my Baby Step 1. I defaulted on my student loans but this time I payed them off and I keep the money in my account.

If they sell the debt than u pay the collectors

I liked to hound the original creditor every time their bill collector calls me. After awhile the original creditor and the bill collector get sick of my calling them everyday.

00Si Andrew too bad that doesn't work very well. They'll resell the debt to another company and keep calling you.

Or just never answer. That's what I do. It's been almost 10yrs and these cucks just sell it to another debt collector. I quit answering the phone and responding. It's no longer on my credit report so no worries

statutes still apply. Them calling you means nothing. They just want to sucker you into paying. Hang up, say nothing. If you get a letter, toss it.

Most cease and desists have to be made in writing. Jsut saying you dont want them to phone you doesnt mean they cant phone you. Ifyou truly think that youre living in a dreamworld lol

Veronica Turner that’s ridiculous why would you agree to something that you don’t know the price of

Hi Rhane, What's new with you?

MissRhane how do you do that?

Exactly!

SydneyStyled negotiate by saying if I agree to pay you must delete from my report. Once they agree have them send you a letter to verify FIRST for your records and protection. Once you receive the letter then pay. Only when you receive a letter.

Christina Schimp do you know or does anyone know.. when it gets deleted does your score go up?

'Pay or We Take it Away' says otherwise 🤔

Americans are generally cocky assholes. It’s the culture there.

Because they own the debt now

Wrong, wrong, wrong.

@@jimiange5252 I had a credit card debt that went to collections a few years ago. When collection agency called I didn't answer so next thing I knew they filed in court to sue me for the debt and I was served court papers. I requested the collector show me the contract with my signature on it as part of the required discovery in any court case, which of course they couldn't provide. I had no contract with the collection company I had a contract with the original company but not the collection company. They couldn't show any mutually agreed upon contract and therefore I had no obligation to pay them, nor did they have any right to demand payment from me. Case dismissed. Sad thing is that not only did they have no contract with me, the statute of limitations had also run out, but had I not known these two facts the judge would have allowed them to go right on ahead and sue me and win a judgement. That judge would have sat there and granted that company a judgement against me after the statute of limitations ran out if I had been ignorant to the law. The courts say it's not their obligation to inform all of us regular citizens of the laws. Very sad. Just remember we elect judges!

Very True

@@johnwright9785 what is the statute of limitations deadline

@@patsinnerdickey8440 Depends on the state your in here in Maine if I recall its 6 years.

& click on “newest comment” if you’re unable to see my current replies. For privacy reasons and basically because of RU-vid’s new policy, fwd your questions to my, e - mail

Em Dee just ask for a letter of satisfaction. Or follow up to see if its a legit company. Legit companies cant legal do anything ramsey said. Tbh i dont think he knows what he’s talking about or his information is outdated by 30yrs. Also theres some regulations that dont allow collectors to send you certain information. Example if the sent you the last letter in less 45 days, they cant send you anymore paper work until after 45dys due to gov regulations.

He told her he just wanted something from them that showed the amount that would pay off the bill and that they would take it off the credit report or list it as paid. The lady said they could not do that. She just wanted my husband to take her word for it and give her his debit card number.

Em Dee - unfortunately, sometimes they cannot send anything. I legit had to wait 4 months on our legal team to approve a letter to be mailed out to our customer before she paid the settlement offer. So in a way she's not lying, it might have to wait for months and months to get an approval. It depends on the company, too.

Jared Thibodaux so how do you handle this if the collections agency took it to court and had you served only after they took the debt on 90 days. Our daughter had 3 medical bills she couldn't pay due to being unemployed at the time so they turned her into collections. She didn't know she had been, then one day she got served papers and had to go to court, they won and now she owes the $670 some bill for medical then $200 lawyer fee for the agency lawyer and court costs and interest that has been getting added since they judge ment. It's been 3 or 4 years and she has not been notified not once from that agency so we have no idea what the outstanding balance is now and I told her not to call and ask Will it go away after the 7 year mark or because it was a court judgment against her does it stay forever?

Deon Barnes Agree Deon, I’ve paid off collections accounts and see almost an instant change.

The trick is to get the payment agreement in writing and do not pay unless you get them to agree to "payment in lieu of deletion." It legally obligates them to expunge the collection from your credit history. Try to haggle them down as low as humanly possible (look at old collections "offers" they might have sent you and wear them down to that amount or lower). You are correct that a paid collection is not good for your credit though.

Yup

Me Goofy Absolutely they can. And they probably will. Blessings to you.

This is a lie. This man is spewing pure lies in this vid. Look at the laws

Me Goofy - if they do, they can get in trouble. You can sue them.

Oh yeah, they are not above doing that