If you cannot afford the lump sum settlement offer from NCB right now, how long will it take you to raise the money? If you can pull the money together in the next several weeks, I would suggest calling in to make a counter offer on the phone.
Negotiating with NCB Management Services.
Be prepared to answer a short set of income and expense questions. Debt collectors, and debt buyers like NCB Management Services, will be looking to:
- Get answers to questions that suggest to them that they hold out for more money (in your case stick to the original mailed offer).
- Learn if you qualify for a better settlement deal based on internal parameters and policies unique to each collection agency.
If you share with NCB that you are on a fixed income, and your situation is such that you will probably always be limited to that, you can sometimes negotiate a better outcome because they have a policy of making room for that.
If you slip up and share information with the collector that suggests your finances have improved since stopping payments to RISE Credit, your efforts with negotiating a lower payoff can hit a wall.
Being sued or arbitration filed on your RISE Credit loan.
Our courts are clogged up with all manner of lawsuits. Far too many of the cases filed in courts daily are from debt buyers like NCB. And while NCB may not sue as much as other debt buyers, there is always the risk you can be sued for collection (if your debt has not passed the SOL that limits how long collectors can access the courts in your state).
If you want to eliminate that risk you should look to negotiate an affordable lump sum settlement with NCB (I am with you on avoiding monthly payments).
If you simply cannot come up with the money needed to fund a lump sum offer, or need more time to save up, but are sued in the interim, you can also negotiate the debt with the attorney NCB hires. The deal may not be as good as it is now, or that you can call and negotiate before being sued, but you can still resolve the debt without a judgment.
I would not anticipate NCB filing for arbitration if that was allowed for in your original loan contract with Rise Credit. I doubt RISE would file for arbitration if they still owned your account. Most arbitration clauses these days are there to prevent class action lawsuits, and are not there as a useful collection mechanism.
How is your RISE loan appearing on your credit reports?
Is NCB Management appearing on your credit?
Anyone with questions or concerns about resolving debts with NCB, or dealing with unpaid RISE Credit loans, can post in the comments below for feedback.
- Lynn:
23 Jun 2016 This RISE loan is the Devil, and it is making me seriously contemplate bankruptcy! I see no end in sight, and they simply will not settle. I'm not at collections yet. The payment is $480 per month; almost none of it is going to principal. Do you have any ideas about how I might be able to resolve this short of bankruptcy? I do have other debt, but with $480 per month, I could work my way out of that. - Michael Bovee:
23 Jun 2016 It is possible to settle the RISE loan for less as an alternative to filing bankruptcy. What is the balance you owe on the loan? You do have to be late with payments long enough for collections and recovery policies to adjust in your favor. When did you last pay RISE anything? - Loing:
02 Nov 2016 I have the same question as Lynn of JUNE 23, 2016 AT 7:07 AM with Rise Credit .... I last made payment last month ... how long do i have to be late for the collections and recovery policies to adjust in your favor.. I haven't default but the principal is not just reducing i collected 2,500 and it says i am still owing 2,600plus. Thank you - Shandra:
02 Nov 2016 I currently have a loan with rise credit that has been charged off. However Rise credit has not sold it to s company as of yet . My total loan is 3647.27. My principal is 2425.45. I have contacted Rise to make attempts to settle. They are requesting that I pay 2500.00 to settle the loan. The loan is now reflecting on my credit report as 30 days passed due . The last payment made was August 11, 2016. Are there any alternatives to resolving this issue . I would like to settle, but I just don't have the entire 2500. I contacted Rise and offer to pay 1500 however they declined my offer. - Michael Bovee:
02 Nov 2016 I typically would settle a Rise loan, at the earliest, 4 to 5 months past due. - Michael Bovee:
03 Nov 2016 You can often settle for a better savings the longer your Rise loan goes without payment. You are likely only considered 2 months late by Rise. Once you are 4 months late and beyond, you may be able to reach your goal. - Matthew Latek:
10 Dec 2016 HI Michael, i have a number of pay day loans I am having a problem paying. Can i ask your advice on what will happen if I dont pay them? I am sure you would need more details on which companies they are but i am ready to default on 2 or 3 of them Please let me know if you can help - Michael Bovee:
13 Dec 2016 It would help a ton to know who you owe, how much, and when the loans were taken out. - Brielle:
02 Jan 2017 I also have a past due account with RISE. NCB contacted me by phone, but the account with RISE is listed on my report as closed. Can I still contact RISE or do I need to work through NCB? The total balance is $1,603 according to my credit report. - Michael Bovee:
02 Jan 2017 Call Rise and make sure they sent your account to NCB for collection. Once you confirm that, you can work with NCB to settle your Rise account. - Ann:
26 Jan 2017 I too have a few pay day loans and I'm stuck in the cycle. I also have a RISE Loan that has just been sent to NCB for collections. The payday loans are with companies like American Trust ($350), Easy Money ($425), and Cash Express ($500). I'm way over my head and contemplating bankruptcy. Any advise?. - Michael Bovee:
26 Jan 2017 What is the total amount of all your unsecured debts? - Ann:
26 Jan 2017 Besides the payday loans I owe close to 23,000 in unsecured loans. - Michael Bovee:
31 Jan 2017 Filing chapter 7 is the least cost and quickest path to getting relief, and without all the grief. Have you consulted with a bankruptcy attorney yet? - Kevin:
31 Jan 2017 I got sucked into the RISE lending cycle as well. I have been paying them bi-weekly for the past three years on multiple refinanced loans. In total, I have borrowed a total of $14,000 and paid more than $20,500. My balance is still $2,850. I'm currently paying on time, but it's dug me far enough into debt that I can't make ends meet. I have $1,000 from two other payday loan places that I buckled down on and will have paid off this month, but I'm going to have to default on my $400/month RISE payments. I recently found out that RISE is not authorized to lend in my current state (specifically to prevent this debtor's loop from happening), but they've been refinancing my loan with all my old information. Is there something I can do to try and get out of this loan? Especially since it now feels illegal... - Michael Bovee:
02 Feb 2017 Check with your state banking or finance office about your options. I have seen things of this nature play out to where they walk away from the loan based on settlements with state regulators, but it can hurt your credit in the mean time. You can also settle Rise loans for less if you are late with payments if you need to reach other credit goal while any state investigation plays out. - Anthony:
25 Feb 2017 I'm dealing with a similar issue with NCB. However, it is not via a debt from rise, but elastic. I couldn't keep up with the payments since I'm now totally disabled. My income is very low now and they are requesting a little over half of what I owe - $2500. I don't have any savings but could raise about 30% of the debt from family - $1300. Should I counter offer with 30%? Since my only income is social security, I don't see being able to pay this monthly. Can they garnish my social security? - Michael Bovee:
25 Feb 2017 Check out this post about social security exemptions. I would counter with something a little less than 30% if I was ultimately only able to go that high.