Can the amount of a debt be negotiated once it reaches a collection agency?
The Answer : Remember that collection agents are leaches. They don't care about you or your family situation. All they want is your money.
First, do NOT even mess with a collection agency unless they actually purchased your debt. Contact the original debtor.Second, the reason you are negotiating is because you do not want this debt to appear on your credit reports. Therefore, demand that if you pay them anything they must agree to remove any record of this debt off of your reports.
If they refuse, let them sue you. The damage to your credit report will be the same, and you can get better terms for payment from the judge. I've supplied a sample letter in the link below to use as a template.When talking to the original debtor, remember that they are paying at least 1/3 of the debt amount to the collection agency, so start there with your negotiating. For example, if you owe then $1000, offer $500. They may accept $630.
If you must deal with collection agencies, remember that the agent works on commission. And they are regularly monitored for their "production" so the agent is going to be less likely to negotiate a small settlement.
http://credit.about.com/library/bl/Ltr_V...
Comment : I chose this answer as the best because it answered not only my original question but questions I probably wouldn't have thought to ask. And...if that wasn't good enough, a link was provided to help even more. Thanks, much appreciated!
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