How to negotiate with debt collectors using BATNA

What do I say? How much will they agree to? Why won’t they work with me?

Those are some of the common questions we see from people who want to negotiate with a debt collector.

You might notice a common issue: they don’t know the answers because they don’t have experience with the process.

They don’t know how these debt collectors work, what their target numbers are, or even the right words to say when they get on the line.

But the biggest problem is not the answers. It’s that they don’t even know the right questions to ask.

When negotiating with a debt collector, the best question to ask is, “What’s my backup plan?”

Professional negotiators call this a BATNA—Best Alternative to a Negotiated Agreement. What happens when you don’t agree to a deal?

For debt collectors, their BATNA may be to sit and wait until you really need to solve the problem and you have more money to solve it with. Maybe you need to buy a new car or new house in the next three months and really need a clean record. That’s when they’ll use their leverage.

For others, it’s to keep reminding you of the debt, and hope the irritation drives you crazy enough to pay what they want.

For some others, it’s to file a lawsuit. They get a judgment and then collect it, just when you think things are starting to go your way.

But what’s your BATNA? Sometimes, it’s to sit and wait. Enough time goes by, it falls off your record and they can’t collect. Sometimes, it’s to scare them away by looking like you’ll be trouble for them. And very often, it’s to lawyer up and beat them in court.

Knowing your BATNA is the first step in any negotiation, especially with a debt collector. Because if you don’t have any other options, you’re going to end up paying more money than you should.

PS – With over 30 years of legal experience, we know how to negotiate but we also know how to give yourself the best possible options outside of a negotiation. If you need Florida help with a Florida debt collection, give us a call.