when i paid some of my collections the agencies would lower about 30% but then i requested this to be done at another collection agency and they said it was illegal!
2006-06-29 11:02:58 · 15 answers · asked by lv girl 2 in Business & Finance ➔ Credit
Most collection agencies will settle for a lessor amount, usually starting at 80% of the balance due. Depending on how long your debt has gone unpaid and how many collection agencies have bought or traded for your debt, will determine how low they collection will settle. This is not an illegal practice. These collectors receive a negotiated percentage of what they collect and they will collect their fee based upon recovery.
Some collectors are a**holes...as are some of the delinquent account holders. If you pay your bills on time you won't have this to worry about.
2006-06-29 11:22:10 · answer #1 · answered by gmommy 3 · 1⤊ 0⤋
I find that collection companies will take half of what is owed, and as little as thirty cents of the dollar if it is a charge off, an old account.
If it is a fresh account I have never found room for bartering and credit repair companies don't live up to their promises. Credit bureaus won't even talk to these companies. Credit Consolidators is a non prof fit organization and the most trusted but unless you have a lot of debt and very bad credit you do not see your self getting out of for a few years I would shy away from that prospect because they can also leave a negative image on your credit report.
"If it is a Court fine or restitution of some sort it is true that it would be illegal for them to lower the bill and hardly ever reduce the interest accrued.
I find writing many many letters and getting a hold of their e-mail addresses and, especially a fax number can go a long way.
These companies at first act like they don't care if you pay or not and the truth is some don't they will just wright the interest off and sell the account at auction to another Collection Company.
2006-06-29 11:24:28 · answer #2 · answered by Spencer B 1 · 0⤊ 0⤋
Collection Agencies are a business. They buy loans from other companies for pennies on the dollar; or make arrangement to keep a percentage of the recouped payback. Those agencies who have full custody of the loan can make whatever arrangements they choose. Beware when negotiating with any collection agency. Whatever the terms are, make sure your credit report shows paid in full, not payment settlement. This could cause future creditors to panic.
2006-06-29 11:09:05 · answer #3 · answered by Swordfish 6 · 1⤊ 0⤋
That is up to the collection agency. it certainly isn't illegal to do that tho. Please understand, collectors at agencies get paid by how much they collect. So if they can get more from you then they will. Having been a collector for 10 years before I had to leave the profession I know well how it works. If the collector you spoke to told you that, speak to a manager. be firm in that is all that you have. Usually they will negoiate with you. If you do settle a debt make sure that you keep copies of your payment and get it in writing that it is a settlement agreement. I have seen accounts settled with one agency and then get sent to a different agency who is unaware the debt has been settled. If that happens and you have the documentation, you can get them toi back off
2006-06-30 06:08:13 · answer #4 · answered by sum1infla 4 · 0⤊ 0⤋
Yes. I've done it.
Don't go to a debt consolidation firm. It's a hit against your credit score. You can get help, but don't do the consolidation thing.
You also have a legal obligation to pay your bills. So you're already being illegal whether you ask for a reduced payment or not! :)
If you have reason to not pay the entire bill, explain it and get a reduction. Otherwise, I think it's only morally right for you personally and fair to the rest of the nation if you pay your bill in full like you should.
Asking for something is not illegal. Well.. in this case ;)
P.S. When you do talk with the agency, follow up with a duplicate in a letter. State who you talked to, date and time. You will get much further much quicker the next time you call.
2006-06-29 12:30:47 · answer #5 · answered by game buddee 3 · 0⤊ 1⤋
depending on certain companies you should be able to negotiate with them. If you signed a certain contract with a comany that states u must pay EXACT amount (and they will emphasize that all over the contract) then it might possibly be illegal but if the collection agency is giving you a hard time then you can contact the company directly and talk with one fo there accounts ppl and they should be able to help you, they might not lower it substantualy but hey every little bit helps right?
2006-06-29 11:08:04 · answer #6 · answered by bdemps2241 2 · 0⤊ 0⤋
I hear they don't, because it's there job to collect the payment. But if you write them a letter explaining your situation, like the circumstances behind your situation it helps. This way in the future when you go to make a purchase if the company asks about that situation at least there's something on file showing that you didn't run from the situation.
2006-06-29 11:09:59 · answer #7 · answered by Blessed 2 · 0⤊ 0⤋
One collection agency lowered my bill by half so I think yes. They really want something more than nothing.
2006-06-29 11:07:12 · answer #8 · answered by Know most of it all 2 · 0⤊ 0⤋
Yes, you can lower your balance through negotiations, it happens all of the time.
Collection agents will lie to you all the time.
2006-06-29 11:06:43 · answer #9 · answered by Anonymous · 0⤊ 0⤋
In some states that's legal, it's called settling, and it still leaves a bad mark on your credit for a long time. It's better for your credit record to pay in full if you can.
2006-06-29 11:07:31 · answer #10 · answered by Beardog 7 · 0⤊ 0⤋