How to game the collection system

I was talking to someone the other day who enjoys beating the bill collectors at their own game. When he gets a substantial bill he thinks is too much or unfair, he simply does not pay it. He waits until they start dunning him and sends them a check for $50. He ignores all their threats of ruining his credit and taking him to court, and no matter what the collectors say, he sends a $50 check, about once a month.

He says that over the course of time, the account is turned over to a collection agency, and he continues to do the same thing: Send $50 a month.

After a year to 18 months, he starts negotiating with them over the balance due. If he owes $2,000 at that point, he might offer $1,000. He tells them he cannot afford to pay more. They always refuse his offer. They make counteroffers. He sticks to his offer. Refuses to budge.

Eventually he says they come around and accept his offer of $1,000 cash rather than chasing him indefinitely for $50 a month.

He says that there is no point in negotiating with the creditor at the beginning of this process. Until you have proven to them that you are not going to give in to their threats they won’t make a deal.

He says that he has never had a problem with his credit rating when borrowing, and has in fact never even bothered to check to see what was reported. Most people do not have the stomach for this sort of thing, but if you do, you could save some money.

Click here for more information on managing collections agencies who are after you for $1,000 in debts.

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