Is it necessary to pay off a credit card account through a collection agency?

Question

When a collection agency (which serves as the "middle man" between a client and customer) arranges a payment plan for a customer of a credit card company, does it (the agency) make a profit from the payments received which are supposed to go directly to its client (the credit card company)?

Answer 1

yes, they get a percentage of the debt owed to the credit card company. If you owe on a credit card, you can try contacting the company itself and set up a payment plan with them, they might be a little bit more lenient on your credit report.

Answer 2

I would get in touch with the credit card company and try to arrange payment with them. Of course the collection agency makes money from hounding (sometimes) innocent people who had no idea or had truly forgotten about the debt. Many times circumstances can be at fault. Some of the people that work for these agencies are rude, insulting and threatening.

Answer 3

The collection agency collects a fee from their client no joke if your not paying the credit card company & got a letter from a collection agency then you gotta pay them so much per month that's the law once the claim is filed

Answer 4

The collection agency gets a percentage no matter who you pay. If you pay the credit card company they will pay the percentage to the collection agency. You should pay the collection agency directly to get the debt off your record in the fastest possible manner.

Answer 5

Why are you paying off your credit card through a collection agency? Do you mean a consumer credit counseling service?
They do get a small fee, based on the size of your debt, but it is WELL worth the interest that is reduced or quite often eliminated.

Answer 6

The collection agency has bought the debt from the credit card company. Don't pay them. Tell them to stuff it.