Collector asking for my paystub

by Donna
(Queens Village,NY,USA)

I am trying to make an offer for a settlement with a monthly payment option. The collector is telling me that I need to submit 3 pay stubs as proof of employment and to show that I have a hardship. Do I have to do this? I don't think that I need to. Am I right?

Comments for Collector asking for my paystub

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May 27, 2010
collector wants paystub
by: Gerri

Donna,

I consulted with a settlement expert who confirmed for me the same advice I would have given you: don't give the collector your pay stubs.

Here is the advice Michael Bovee, founder of Consumer Recovery Network gives. (His firm settles debt all day long.)

Income verification through paystubs is requested by collectors and the like as a means to deny settlements (or increase the amount), not typically to approve them.

The exception is when you are trying to get a settlement approved that is much lower than is generally granted by a creditor.

We are seeing more requests of this nature, but have always worked around it.

If this is a collection law firm; It is generally not a good idea to provide income detail as it will be used to determine whether to file a lawsuit.

Depending on the creditor/collector, it is generally a bad idea to provide this type of documented detail unless it truly substantiates the hardship.

CRN is available to consult with the consumer to provide further detail once we know more specifics.


You may want to listen to this debt settlement podcast where Mary interviews Michael Bovee about negotiating debts.

May 27, 2010
Do I Have To Share My Pay Stub If I Am Trying To Settle A Debt?
by: Mary

Thanks for submitting your debt collection question on our Q&A page.

No, you do not have to provide the collector with your pay stubs when you are trying to settle your debt. In fact, it's a bad idea to do so because the collector may use that information to deny your settlement request or to demand that you settle for more than you are asking for. Also, the collector might use your pay stub information to help decide whether or not to sue you for the money you owe. However, if you are asking to settle for far more than the collector would normally settle for, you may need to share your pay stubs in order to help justify why the collector should agree to such a small amount.

I suggest that before you continue negotiating with the collector, you listen to the podcast interview I did with Michael Bovee, president of Consumer Recovery Network, a fair and ethical debt settlement firm, debt settlement podcast. I also advise that you contact Michael directly for a free consultation about your settlement efforts, Consumer Recovery Network.

Please share what happens with your situation in the comments section for this question. We are very interested in hearing how this turns out for you, and your experience can help others who are in situations like yours.

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