How to negotiate with creditors to remove negative reports

  • How to negotiate with creditors to remove negative reports
13 Feb, 2024
Daniel Cohen
3 min
how to negotiate credit card debt

Negative reports can be deleted from your credit report

It's possible to eliminate some negative reports on your overall credit report via negotiation instead of paying them.

Do you know that you can make it out of debt even if you don’t pay of every bit of it?

You can improve your credit health, reduce your monthly payments, and put an end to grappling with collection agencies and credit card companies.

This is possible by negotiating with creditors for a debt settlement.

It’s a move that can reinvigorate your credit score.

Thus, this post outlines how you can negotiate with your creditors to remove negative reports from your credit.

1. Get your money ready

A debt settlement demands that you pay off some of the amount due. You don’t expect to ride off into the sunset without making any payment at all. If you’re cash-strapped, then work on raising the money. You might have to work, sell off some assets, or borrow from a close relative in order to raise the required funds.

2. Propose to your creditors

Let your creditors and debt collectors know what you want. Notify them of the amount that you’re willing to pay as well as what you expect of them. You can ask them to rule out fees for late payments.

Be sure to let them know that you expect them to remove the debt from your account with the major credit reporting agencies.

Understand that the process typically involves some bargain. So, after some haggling, a compromise is bound to be reached. 

3. Ensure that the agreements are written down

Once you’ve agreed on the debt settlement, be sure to get it in writing. You need to have the agreement written down before you make any payment or disclose your bank details. This is essential because it stops the creditors from resiling on their end of the bargain.

A written agreement will ensure that they play their part.

4. Focus only on what matters

During the back and forth with your creditors, only let them know the relevant issues. You can give them little information on what prompted your financial hardship. For example, tell them that you were laid off, or that some other major occurrence, such as the pandemic, caused your finances to flop.

However, this is as far as you should go. Don’t make the mistake of telling them everything about your financial life.  

5. Know what the law permits

Dealing with creditors and debt collectors can be worrisome. They might resort to uncomely means just to get you to make the payment you owe. Don’t fret; the law is against any form of harassment from debt collectors.

Also, let them know how and when you wish to be contacted. Thankfully, they can’t call other people to discuss your debt, so you need not worry about them spewing your details to family members and colleagues.

The Fair Debt Collection Practices Act regulates your interaction with creditors and debt collectors, thus saving you from their excesses.   

6. Make the payment and ensure that the necessary changes are made

When all that’s mentioned above has been done, go ahead to make the payment. When you do, follow up by checking your credit report shortly after. This is to find out whether or not the creditor removed the negative report.

If for any reason the creditor has not played his part, call his attention to the agreement. You also have the option to file a complaint with the Consumer Financial Protection Bureau. They’ll compel the creditors and debt collection agencies to keep to their word.

Repairing your credit could prove nerve-wracking. But who says you have to do it all by yourself? Our team of experts are eager to help you with anything concerning your credit. Reach out to us today. 

About the author
Daniel Cohen
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Daniel Cohen is a Founding Partner of Consumer Attorneys and a co-chair of Consumer Finance Litigation practice. Since 2017, he is a member of the National Association of Consumer Advocates and the National Consumer Law Center. Mr. Cohen is a nationally-recognized practitioner of consumer protection law. He has a wealth of proven legal experience in the US in: collective claims, representing visually impaired people who believe their rights under the Americans with Disabilities Act have been violated in both the physical and digital environments, corporate governance and dispute resolution. Read more

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