I am trying to negotiate with a Collection Agency for a one time lump sum payment?

Question

in order to help my daughter avoid bankrupcy. (Not asking for parenting advice here, she will have to earn this money.)

So I told her to ask the collector to call me, which he did. At work. (Not a problem in itself, but the resulting turdiness was)

My initial offer was 50% of the total bill, which is a little more than the original credit card balance. I would go a little higher, but he told me it was non-negotiable and 80% is the only offer.

He was EXTREMELY rude and told me it was my bill, I'd run it up anyway. (It is not.)

So how do I go over this jackass' head? Do I go through Capital One (the company) or the collection company (NCO?)

I know they have a crappy job, but being a jerk to somebody who owes you nothing tends to get you NOWHERE.

Answer 1

First volunteering to talk to a collection agency...you are brave, my mom wouldn't do that for me.

The first thing you should always do is ask for validation of the debt. Now that they have your number they will call you non-stop so get that letter (out using certified mail return receipt requested) ASAP. In the letter state that phone calls at any time or place are inconvenient and they should only contact you via mail. Then if and when they send the validation if you still want to settle make sure that they agree to delete all entries regarding the account from her credit report (Cap One may not go for this they are a pain) and that they agree not to sell any remaining debt to another collection agency ever and get that all in writing. Remember also if they settle for less than the full amount and "forgive" more than $600 your daughter will get a 1099-C from them and she will have to claim the forgiven debt as income on her taxes for that year.

For more explanation and sample of debt validation letters visit Creditboards.com. This is a awesome resource for anyone who wants to repair their credit.

Answer 2

I still don't understand people who get caught up on what a collection agency pays for the debt. It simply doesn't matter. They could pay $5.00 for a $10,000 debt and it just doesn't matter. The debtor agreed to pay all the interest and then the default interest, then the late fees, the over limit fees and the creditor/collection agency has every right to collect the full balance. NCO doesn't care if your daughter files bankruptcy or not (not trying to sound rude). NCO is not very professional I will have to agree with that. You can attempt to call back and get an operations manager/floor manager, and see if they will settle this out lower. My guess is they do not own the debt, Cap1 has probably placed the account there for collections and the settlement offer is a blanket settlement authority they have on Cap1 accounts. If that's the case, they will not go any lower as Cap1 will not allow it. You wont be able to talk with Cap1 and try to get it lower, you'll just have to deal with NCO or any other agency it may goto.

Answer 3

Always and I mean always keep your calm, ask to speak with a supervisor, or someone that actually has any power to negotiate. (a put down but so what) then start negotiations, insure that you will get in writing that they will remove this from her credit scoring. Again be calm, be patient do not let them get under your skin, and keep asking to be moved higher up. They will be resistant as their earnings are determined by what they collect but also remember they buy these debts on penny's on the dollar so they do have much room to negotiate.

Answer 4

You can't go to Capital One, they've already turned it over to the collection agency and it's out of their hands. These people are jerks, but can you imagine the deadbeats they have to deal with most of the time?

You can try calling to get someone else at the collection agency, but it's doubtful they'd offer you anything better. Those people stick together.

Either pay it or let her suffer the consequences of this on her credit report.

Answer 5

first of all how do you know you owe THEM the money,
did they PURCHASE the debt? Did you sign a contract
that said you would pay them ???? Quit talking to them
read thru

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