We first must say, if you are being contacted by an original debtor, i.e. the company with whom you are positive the debt originated, and you are absolutely certain the amount is precisely what you owe, it may be in your best interest to negotiate. Negotiate to avoid collections activities, reporting to the credit bureaus, etc. Mitigating damage in any way possible, BEFORE it damages your credit, is the best practice. If in doubt, then NO.
If you are being contacted by an agency you never heard of, about a debt which you may or may not be familiar, it is advisable to NOT pay anything based upon a phone call. There are several reasons for this:
1. Debt collection companies often buy debt in bulk. This debt is sometimes so old it is legally unable to be collected, as it has reached the statute of limitations. The only way to wind back that clock, is if you were to acknowledge this debt is your obligation, by paying a small amount (even $1.00).
2. Some debt collections companies will buy what is called "zombie debt", in other words legally deceased debt that is worthless, but still has potentially factual information. These companies will call the consumers, ask them for a "good faith" payment, at which point it is no longer "zombie debt". For the debt collection company, regardless of what they collect they have now increased the value of the data they hold. They now have collected on that debt, verified it's yours, and even have a contact number for you.
3. If the debt you are being contacted about has not been paid, the debtors threaten you in any way, the best thing to do is simply ask for a full disclosure of this debt be sent to you in writing, so that you may determine if it is real or not.
If you find yourself in this situation or debt collectors are calling you, KnightFiCo can end those calls immediately. In addition, we can provide you assistance to taking the best position possible to be free of these types of collection activities. Often, we can even have that debt legally absolved.
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