Posted on June 9, 2009 at 11:18 pm I recently got a letter from a lawyer stating I owe mastercard $4500 or so and that if I dont pay in 10 days then necessary action will be taken including legal action. Are they trying to bluff me or will they really take legal action in 10 days? If so what could I possibly negotiate this debt to, its been about a year since the debt started accumulating.

Posted on June 10, 2009 at 1:18 am Hi. First find out if you are really talking to a lawyer (debt collector)-and to find out if he/she is legally licensed to collect in your state, and if he/she is, then send him/her a letter requesting validation of this debt, then wait for 30 days for the response.

Posted on June 10, 2009 at 5:54 am Ok I looked over the letter and at the top it has the barrister and solicitors information sort of as a header and in the letter it states 'I am a solicitor for Collectcorp, an agency for the above named creditor (mastercard) to whom you are indebted to. If approved by the client the recommendation for legal action against you will proceed unless payment in full is received within ten days of this letter. Are they politely threatening me with legal action? Isnt that against the collections act? When I called the lawyer it was an automated machine saying we are busy etc so I left a message, Im going to try and confirm my case is with this lawyer otherwise how can I proceed?

Posted on June 12, 2009 at 7:33 am According to the Fair Debt Collection Practices Act (FDCPA), collectors may not threaten a debtor with a lawsuit if they are not actually prepared to pursue legal action to collect the debt. Since the collector sent you something in writing suggesting that is the route they are considering taking, it may be a legitimate threat. However, these things are always difficult to break down since a grey area exists in the language used in the letter they sent you. For instance, they stated, "If approved by the creditor.....". So essentially, it does not sound like a lawsuit has commenced at this time and that is the most important thing to understand right now. As a result, you should have time to resolve the debt even if they are intent on filing a suit against you. Have you considered your options for paying the debt off or perhaps settling the debt for a reduction of what is owed to avoid this situation?

Posted on June 13, 2009 at 12:20 am Ok I decided im going to try and settle my debts with all my creditors but im not sure who I owe what exactly since I havent kept good track of my statements, is there anyway to find out who I owe money to?

Posted on June 14, 2009 at 4:22 am Yes, pull your free credit report.  You're entitled to one a year.  Experian tends to have the most accurate and complete information about your account.  Here's the link to get it: www.annualcreditreport.com If you don't see all of your accounts, you can call up your original creditors and try to track down the accounts that way.  

Posted on August 3, 2009 at 11:45 am How is settling debt with a junk debt buyer? Pretty easy or what? Let me know, I have 3 accounts that were sold recently and I want to know how I should approach this situation.

Posted on August 3, 2009 at 3:45 pm Settling debt with a junk buyer can be a good thing, if you judge the negotiations on what you settle for. Typically, these debt buyers will purchase debts for very cheap, so even if they settle for really low percentages they still make a killing. The problem with junk debt buyers is that often they can revert to very aggressive collection tactics. You may have to work with some very difficult people. That is not always the case but just a fair warning.

Posted on August 7, 2009 at 1:00 pm Settling debt isn't great with all debt buyers. Asset Acceptance for example has an in-house attorney and they often file lawsuits against the debtor they are trying to collect money from. So beware if you see that you have an account with them- it would be in your best interest to try and settle the debt right away before they pursue any legal remedies to collect.