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This post is part of the Debt Bytes “Charge Off” series and discusses what typically happens with your unpaid accounts “Post Charge Off”, when the balance is assigned to an outside debt collector.

In order to have reached charge off, you will have survived the many collection attempts from your original creditor that typically last six months. Here is where your account goes from the frying pan to the fire. This is where your stress level regarding unpaid bills will increase. I know, as if additional stress was even possible….

It is.

Creditors have 3 options available to them once they charge off an unpaid debt. The most popular of the 3, at least with newly charged off accounts, is to place the debt with a collection agency.

Debts placed with an outside agency are generally done on a contingency basis and with short time frames built into the assignment contract.

The amount of time your account remains with an assignee collection firm will vary, but it is usually no longer than 90 days.

The typical debt collector working for your creditor as an assignee has two primary tools available in their attempts to get you to pay; your phone and your mailbox. There are other methods of collection, such as calls to your work place, friends, family members, neighbors, but I want to keep the focus of this post to the most general efforts used by the debt collector who has been assigned your account just after charge off.

First, similar to when you first fell behind in payments to your original creditor, the phone rings, a lot…. Next, the phone rings some more, and then… some more.

WARNING: Do not use your phone for target practice! You may need it later.

If you want to resolve an account that has been placed with an outside collection firm, you will have opportunities to do so. Here are some important details to consider in your effort:

• You will have to pick up the 2 ton telephone receiver in order to identify your available options with the account. Do not limit yourself to written communications
• You will be speaking to someone who has been trained to push your buttons using the most effective and proven methods for collecting
• The agency can only work out arrangements for payments that are consistent with the guidance they have been given by their boss, your creditor
• You will not be able to re-age the account
• Avoid some of the nut job advice on the internet about handling this stage of collection
• In some ways you have more payment term options than you would with the original creditor
• The collector only gets paid if they can get money from you

You should know that a charge off event is going to be reported to the credit reporting agencies.

The reason to point this out is that the damage to your credit is now done. You do not get to re-age charge off accounts. The credit carnage from not paying a charged off account can now only get worse by being sued, followed by a judgment entered against you. A judgment can later show up in the public record section of your credit profile. Also, a collection trade line may later appear on your reports, and this would be considered additional damage (this aspect will be covered in additional posts to the Charge Off series).

Any threat or comment from a debt collector about how you should be concerned with your credit report and score after the account they are collecting on is charged off is just a collection tactic. Collection agencies will have no ability to change how your creditor reports the debt to Equifax, TransUnion or Experian.

There are tactics and timing you can learn that will better prepare you for dealing with outside debt collectors. You can optimize your results by knowing:

• When and how to get a deal
• When to pass on an offer
• What your specific creditor will allow the collector to do (which leads to you getting the best deal)
• The tricks and tactics that will be used to get you to pay more than was necessary
• What is considered collection abuse
• You can get professional help at a reasonable cost

If you are struggling with multiple credit card debts that are in the post charge off collection stage, it is important to understand your options and identify your resources for handling the accounts before they end up in, or are immediately placed into, the more advanced stages of collection which can include being sued in order to force you to pay.

It is important that your next step to deal with your now charged off debt be the step you take to put the debt to rest before the situation can deteriorate further. Find out how: Click Here to schedule a Consultation. A CRN specialist can assist you in learning the details you will need to consider once they know more about you. Consults are provided at no cost.