Re: settle a collection?

Posted by Why Chat (209.240.198.61) on July 05, 2003 at 13:46:13:

In Reply to: settle a collection? posted by wolf on July 04, 2003 at 17:25:20:

In general, original creditors will not settle for any % of the balance due, as unless you are talking about a LARGE amount of $$ where, for VERY good customers they may waive late fees and interest in the expectation the account can be reestablshed.

It is better for them it charge it off and recoup from a sale to a collection agency for 10¢ on the $.

However, if they DO make you an offer in writing, it will probably be for at least 60% of the balance with a 1099c being issued for the balance.

If you are talking about paying or "settling" with a 3rd party collection agency, however, THEY cannot negotiate on behalf of the OC, they usually have purchased the debt, they cannot give 1099C for any unpaid balance, they will resell the balance to another collection agency.

If you would tell us your State,and when you were first late on these accounts (all the info. requested in the "Newcomers Please Read" post) we may be able to give mre specific advice.

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