February 11, 2022
Summary: Have you been sued by NCB Management Services and want to negotiate a settlement? Here are some tips and tricks on negotiating a settlement that's ideal for you.
Debt collection companies like NCB Management Services usually don't favor the idea of a lawsuit when consumers fail to pay what they supposedly owe. This is because lawsuits are hectic and time-consuming. When debt collection agencies contact you, they hope to settle the debt out of court by creating a payment plan that works for both parties.
However, this doesn't necessarily mean that you should head straight into creating a debt repayment plan with the collection agency. Here's why.
Debt collection agencies buy debt accounts from creditors. As a result, the ownership interest in the debt can change hands multiple times to the point where it is difficult to discern what is actually owed and who is responsible for paying it back. In fact, it's possible that you may be sued over a debt you don't even owe.
Additionally, a debt collection agency like NCB Management Services may sue you due to mistaken identity. Some debt collection companies may even sue you over a debt you already cleared. For this reason, it's always advisable to request a debt confirmation from the creditor when you clear a debt.
Unfortunately, many consumers end up paying debts they don't owe out of the fear of being involved in a legal tussle with the debt collection agency. But, when it comes to settling or disputing a debt, fear is the last thing you need. Instead, you need to understand your rights as a consumer and use them to find a solution to your debt problem.
In most cases, debt collection companies request that you settle between 40% to 80% of the original debt amount. However, you must verify that you actually owe the stated amount before agreeing to a settlement plan. Agreeing to a settlement plan confirms that you owe the debt, and it may be difficult to prove otherwise if you breach the agreement months or years later. Therefore, be sure to verify the debt before taking any other action!
It's your right to request debt verification from any debt collection agency that pursues you over a debt you supposedly owe. This right is granted by the federal Fair Debt Collections Practices Act (FDCPA).
You can request a debt verification by sending the collector a Debt Validation Letter. In response, the debt collector must disclose information about the debt within five days of the initial communication. The information should include:
The FDCPA updated its debt verification requirements on November 30, 2021. In addition to the requirements stated above, the debt collection agency must also provide:
Examples of additional information that helps a consumer identify the debt in question include the:
The 'itemization date' could be one of the following reference dates:
The verification notice must also contain a dispute form that you can return to the debt collector if you want to dispute the debt. You may dispute the debt if you've established that you don't owe the debt, the amount is wrong, the statute of limitations has expired, or for any other eligible reason.
If you dispute the debt in writing within the 30-day period, the collector must stop all collection efforts of the debt until they have obtained proper debt verification and sent a copy of the verification to you. This rule is outlined in section 15 U.S.C. § 1692g(b) of the FDCPA.
The statute of limitations is the amount of time a debt collector has to pursue a debt you supposedly owe. When the statute of limitations expires, the debt collector cannot legally pursue you over the debt in question.
If it is established that you actually owe the debt, you can reach an agreement with NCB Management Services by proposing a settlement offer. However, as mentioned before, many debt collection agencies dread the idea of taking consumers to court and would rather negotiate a settlement plan.
Here's one secret you need to know about debt collection companies: they normally buy debts from credit companies for around 4 cents per dollar. This means that you can actually negotiate 50% of the original debt amount, and they'll still make a profit.
For this reason, NCB Management Services may let you pay way less than the original amount. Always begin with a low offer (20-30% of the original amount). Starting low gives you room to raise the settlement amount. Don't be afraid to mention the payment plan that works for you,you may find yourself in a bigger financial problem if you overpromise and underdeliver.
During the settlement negotiations, you may also request NCB Management Services to remove the debt from your credit report once settled. Chances are they'll agree to do so 30 days after the final payment. This will help repair your credit history.
Watch SoloSuit's CEO pay off one of our customer's debts by negotiating a settlement with the collector. This video also has great tips on negotiating your own settlement:
Most of the time, debt collection agencies want you to prove that you're committed to paying the debt you owe. However, this doesn't mean you should blindly accept any debt thrown at you. Instead, it's always advisable to treat every debt as invalid unless verified. And, when verified, you can always negotiate a settlement plan, starting with the lowest and most reasonable amount possible.
Here are some tips on negotiating a settlement:
If the debt collection agency sues you over the debt, you shouldn't ignore the debt collection summons. Ignoring the lawsuit can result in a default judgment against you, which can cause major financial problems like wage garnishment, seizure of property, etc.
Respond to a debt lawsuit by filing an Answer with the court and sending a copy of it to the collector's attorney. Finding an attorney to help you draft your Answer can be difficult and expensive, but with the help of SoloSuit, you can file your Answer and represent yourself!
Responding to the summons establishes your willingness to cooperate, making it even easier to reach an agreement in front of a judge. Start drafting your Answer today, or reach out to SoloSuit with further questions.
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.