It is never easy to bargain about prices. What happens when you want to buy your favorite shirt? What do you do when you see that the price is beyond your budget? You try to negotiate with the shop keeper and get the price down. In case of debt negotiation, the settlement company completes this task for you. However, credit card companies avoid negotiations and discussions. They discourage the idea of debt negotiation because they want the customer to pay as much as possible. They try to blame the loan takers for poor records and reject their applications for settlements.
You will only be able to negotiate terms and conditions if the bank agrees to your initial request. Why would a bank decline a debt negotiation request if it is facing monetary problems.
· It has enough resources available to continue its trading activities. Thus, it does not need to bargain with the loan taker.
· The loan taker has been a defaulter in the past. Thus the bank declines the request due to policy reasons.
· Your consultants have not presented valid points for the debt negotiation application to be requested.
If we take the first point, this is an uncommon reasons a lot of us do not face this situation. The banking industry is one of the worst affected sectors. You cannot expect a lot of banks to decline proposals and offers. They need money and they need it fast. Even if a customer is willing to pay fifty percent, they will accept the offer. A larger percentage of banks have even closed down and this is a cause of worry.
Banks have very strict policies which do not change under any condition. We can take the example of the credit rating option. A bank will never compromise about the credit rating of its customers. Due to recession, loan takers have not made timely payments. However, banks have not granted any concession. The credit rating of all such customers has declined. Bank policies are designed on very strict guidelines and they do not change because of customer problems.
The third problem is a common one and very disturbing as well. Most loan takers are not confident about the capabilities of their consultants. They do not know what kinds of results to expect from them. If they fail to convince the credit card company, the application for debt negotiation is rejected immediately.