When a account is turned into collections do they settle or do they have to collect the hole amount owed?

Answer 1

In many instances they are willing to settle for less after awhile and for a cash payment. Be aware though it still remains on your credit report for 7 years

Answer 2

I've had 3 separate accounts sent to collections. They offered a settlement the first time and I agreed instantly as it was lower than the original amount I owed. However, the 2nd account that was in collections I actually told them I'm not able to come up with anything and my financial situation is really bad (no backup funding source, no job, just make up stuff, etc). They will usually ask you to borrow money from friends/family or use a credit card to pay them for the whole amount - be persistent with your story that you are unable to come up with the funds BUT you are willing to settle the situation as you have half the amount available which you can give them.
The collection agency will usually settle for 50% of the amount if paid instantly (at one time). If you make a payment arrangement with them (example $100 per month) they should be able to drop down the full amount a little or at least stop any interest accumulating on it.

Answer 3

Collection agencies buy up your debt from the companies for usually .01-.10 cents on the dollar. They are willing to cut the amount owed because they typically expect to get nothing from you at all.

Answer 4

Good question..seems like we have the same problem!!