Take Creditors and Collection Agents to Small Claims Court
Go for the out-of-court settlement first
Accept their proposal for out-of-court settlement if they give you one. Or else you
propose them for the same before going to court.
The judge needs to understand that you are in a problem and that you have tried your best
to resolve the matter on your own. Only after much harassment are you seeking the help
of the court. The judge must get an idea of how much anxiety and stress you are going
through. To achieve this, you must possess the necessary proofs of your negotiation with
How to propose for an out-of-court settlement:
First of all, send them a letter asking for the necessary changes you want. You must be
seeking a change in the credit bureaus’ database or a change in the collection agency’s
policy of collecting debt.
If there is no response from their side, let them know that you are filing a court case
against them. Send them a settlement letter mentioning the changes you want and the
amount of money you demand in the lawsuit.
It’s very likely that they will accept your proposal and try to solve the dispute personally
instead of going to the court. It will save them from losing their time and their reputation.
In this way they could also save the court fees and other charges, although they have to
If your proposal is accepted:
• Get the written document of the settlement: Get hold of an original copy of the
agreement with their signatures. You might not get the original copy since they
can even fax the agreement to you. If they refuse to give a written form of the
settlement, then you need to go to the court.
• Read the terms and conditions of the settlement carefully before signing it:
The language used in the agreement letter or document given to you might
contain legal jargon. You might not completely understand the clauses mentioned
in the document. To be on the safer side, get in touch with a good lawyer. Sign the
document only after comprehending it with your lawyer’s help.
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