Since a collection agency normally buys a debt from a credit card company, I understand that it isn't really necessary to pay off the debt to the agency. I was told it's better to simply ignore the collection agency (since they get a percentage of any payment as a profit) and negotiate a payment plan with the credit card company itself. After all, the collection agency doesn't even attempt to lower the interest rate on a debt for a customer. Please advise.
2006-10-31 13:12:37 · 9 answers · asked by Roderick C 1 in Business & Finance ➔ Personal Finance
I'd pay the CC company, but only after they have proven to you that the collection company cannot continue to collect the debt. You're right in saying the collection agency buys the debt - they usually buy the bad debt for a percentage of the total debt so the CC co. can write it off and they can try and collect the full amount to make a profit. Most CC companies won't touch debt that's already been sold to a collection agency.
2006-10-31 13:15:57 · answer #1 · answered by over_educated_under_everything 2 · 0⤊ 0⤋
Credit Card Company. If it goes to a collection agency it will be put as a black mark on your credit report, which will raise your rates and lower your credit score.
2006-10-31 13:14:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Through your credit card company. If you pay through a collection agency, there is a higher likelihood of it reflecting poorly on your credit report.
Collection agency = bad credit.
2006-10-31 13:15:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I would go through the credit card company
2006-10-31 13:13:58 · answer #4 · answered by aliciarox 5 · 0⤊ 0⤋
The credit card company will work with you if you show an honest effort to pay.....must better for your credit history.
2006-10-31 13:25:35 · answer #5 · answered by May I help You? 6 · 0⤊ 0⤋
call the credit card company, ask for a manager, explain the situation, and negotiate a payoff. trust me, do not let it go to collections. it will stay on your credit history for up to ten years and cause you all sorts of hell down the road.
2006-10-31 13:15:48 · answer #6 · answered by Texas M.B.A. 2 · 0⤊ 0⤋
yea i would deal with the credit card company , they won't be real happy not to get their money but they will like the fact that u r trying to pay back the money and hey it is better than stiffing them .
2006-10-31 13:20:03 · answer #7 · answered by JUANITA B 1 · 0⤊ 0⤋
Buy the book 7 steps to 720. Amazing at answering these questions. I am reading it now.
2006-10-31 18:51:23 · answer #8 · answered by zeezrom8 2 · 0⤊ 0⤋
if the agency has already bought your debt you have no choice and your credit is screwed any way, sorry pal
2006-10-31 13:14:50 · answer #9 · answered by mgd1k 3 · 0⤊ 0⤋