Do you know if Sofi (personal loan) typically settles on delinquent accounts? I’ve only missed one payment and realize If they do settle it won’t be for a few more months of non payment. If so, how aggressive are they in their collection process?
Social Finance Inc (SoFi) loans can be settled for less than what you owe. When and how to go about that in order to get the best outcome will vary from one person to the next.
Personal loans can sometimes be settled for 50% or less. Like you pointed out, you have to be late enough to even begin to legitimately negotiate. And because personal loans will follow accounting guidelines for charging off unpaid debts at 120 to 150 days, it is often this time line that you have to work with.
Negotiating with Social Finance Inc
When you call Social Finance directly, in order to talk about your inability to pay, you may be offered some reduced payment options that are temporary. If your current financial set back is sure to be short lived, the lower payment option can make sense. But be sure you only agree to something you are confident you can follow through with. If you fall off of a payment option with SoFi, it is unlikely you will be able to call back and negotiate anew.
If you cannot continue to pay your SoFi loan, and the payment plan they offer is not enough of a concession, you are likely looking at settling with them. But you will likely be negotiating with a third party, and not directly with SoFi.
Your SoFi loan is with a debt collector.
At the time of this writing, it is not all that common to be able to work out your settlement with SoFi. You end up having to deal with a third party debt collector they send the debt to instead. This may later end up being debt buyers too, but for right now, it is mainly going to be a contingency debt collector, or a collection law firm.
Contingency debt collectors are the most common type. They call and write to you in an effort to get you to pay. They get paid if they get you to pay. They will often only have your account for a short window of time. You can use each debt collectors collection trends to optimize the savings from settling your SoFi loan with them.
In either case, the debt collector is going to form a bias about how collectable you look based on your credit reports, and other details. If you look like someone who is managing to keep several spinning plates in the air (mortgage, car, student loans, credit cards), than you are often viewed as a better collection target. If a look at your credit suggests all your plates came crashing down, the outcome from settling with a debt collector on your SoFi loan can often be improved.
Post a comment with your loan balance, and whether you have additional collection items that are currently showing, or soon will be, on your credit reports. I can offer more feedback from there.
Anyone with questions about negotiating payments or settling your SoFi loan can post below for feedback. You can also reach me by phone to discuss your situation off line at 800-939-8357, ext 2, or fill in the talk to Michael request box in the right column.