Posted on
January 7, 2010
at
3:08 am
What are acceptable and fair collection agency settlement offers?
Posted on
January 7, 2010
at
3:54 am
Collection agency settlement offers? I'm not sure I understand your question - do you mean in percentage?
Posted on
January 7, 2010
at
3:57 am
I guess so .. I understand that when my account has been passed on to the collection agency, it means that the interest rates would stop adding up to my original debt amount - and that they won't really expect me to pay in full ...Who offers first anyway, them or me?
Posted on
January 7, 2010
at
4:03 am
Oh, yeah, you offer first by sending them what they call a settlement offer (letter) - like this:
"I will agree to a payment of $xxxx to settle the debt owed <insert details of debt>. This amount would settle the debt in full so that no future collections efforts will be made and no entries on my credit records will be made."In percentage? I'm not sure and it depends on your creditor - I guess it's safe to start at 50%
Posted on
January 7, 2010
at
4:17 am
It's lower (the offer) if you're dealing with a junk debt buyer. However with collection agencies that have been assigned the account to by the original creditor - know this - they are compensated according to how much they collect on the debt. So if the consumer has a balance of $10,000, and the collection agency settles the account for $4,500, the collection agency gets15% more or less of the settlement amount. The rests are sent back to the original creditor.
Posted on
January 7, 2010
at
4:36 am
Some would say to start the offer at 75% - they would refuse for sure. But know that they'd rather get something than nothing - so wait until the third offer?But this is d.i.y. debt settlement, if you think you can't do this, there's another option for you - professional debt settlement.
Posted on
January 7, 2010
at
4:39 am
How much are they charging? And how to choose a company? Where to look?
Posted on
January 7, 2010
at
4:40 am
Debt settlement companies would charge 15% of your total debt amount -spread over 18 months or they will take between 20-25% of the settlement amount.
Posted on
January 7, 2010
at
4:47 am
How to choose a company?Check their membership here:Better Business Bureau BBB www.bbb.orgThe Association Of Settlement Companies TASC www.tascsite.orgUSOBA www.usoba.orgInternational Association of Professional Debt Arbitrators IAPDA www.iapda.org
Posted on
January 7, 2010
at
4:48 am
With regards to their program - -The settlement company's program must have a fast completion time, it's usually 12-36 months, and that program must be able to protect and improve the consumer's credit standing.
