Re: Hey CC Collector maybe you can answer this question

Posted by CC Collector (12.220.80.168) on August 25, 2002 at 12:09:36:

In Reply to: Hey CC Collector maybe you can answer this question posted by K on August 25, 2002 at 08:14:47:

Well, I know personally most credit card companies (obviously) will start high with settlements. I talk to people everyday who settle for 85%. However, the de facto standard for settlements is 60%, and companies will obviously go lower if need be. One tip I have is if you are settling multiple accounts, find the creditor who is settling for the lowest percent and then tell your other creditors. Creditors (we do anyway) pull your credit report to see what the other companies settle for and we usually offer a similar amount.

CC Companies do not want accounts to charge off, obviously. Customer retention is important because we still have our chance to make money the longer a person is with is. However, you must realize they companies pay CC collectors, pay huge phone bills, etc, etc to call the customer and at some point we just let them go. It would be cheaper for us to just write off the debt as a loss (I think we need a certainq quota of write-offs for tax purposes anyway).

It's just easy to remember that everything a CC does is in regards to a business plan, the best way to make money now, and down the road. If we see there is a chance that a customer can turn an $10000 account around and stay with us (keep paying us interest) then we may pursue them more than someone who has a $1000 balance and has been out of work for 6 months.

Call me a quitter, but if I had any terminal illness I would fill up all of my unsecured debt and file chapter 7. Who knows if I would be alive in the next seven years... I would want to enjoy the time, not have harassing collectors bugging me to death, literally.

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