Collection Agency?

Question

Hello, I recently found out that I have a 2300 dollar blance on an account (APARTMENT WHICH I CO-SIGNED FOR AN EX)

which has been referred to a collection agency. My question is do you think they would accept $400 dollars to settle the debt. If not what is a good amount to negoiate.The debt is about 5 years old and is preventing me from moving to an apartment. thanks

Answer 1

It's very important for you to negotiate and get a written settlement PRIOR to paying them. This settlement should state that they will remove the item from your credit file upon receipt of the agreed-to amount. Start with $900 as a settlement.

NEVER accept verbal promises from debt collectors over the phone...they'll promise anything to get your money. Once they get your money they'll deny that any agreement was ever made. Without a written agreement you'll be powerless to dispute this. If the terms are not in writing they're worthless. Never give debt collectors your checking account # for payment. Pay only by USPS money orders.

Answer 2

As little as possible. $500 is about what i would get them to settle with after i tell them im in a wheelchair on a fixed income. Sounds like it might be easier to get a parent or friend to co-sign. Or just fill out someones co-sign info!

Answer 3

They won't take $400 to settle the debt, they might take $400 off and you only owe $1900.  I doubt they will take anything less than 60% of the balance owed, or $1380.  

If you can't pay it, then I suggest you move somewhere that doesn't care about this debt.

If you can pay it, you need to have an agreement with them that they will delete it off your credit report.

Answer 4

If the debt is 5 years old you may be outside of the Statute of Limitations.  This varies by state and would really determine your bargaining power.

If you are outside of the SOL they can attempt, but can not prevail if they file a suit against you.  So your bargaining power goes up.  It still is unlikely but they may take the $400 offer.  However, if you are still in the Statute of Limitations you will probably need to offer at least 50% and depending on how quickly you can pay it, they may only accept 75%-80% of the balance.

Before you pay this you need to get from them a Pay for Delete letter which basically says that once you pay the agreed upon amount they will delete the listing from your credit report.  Only then should you send them any money.

Answer 5

Negotiate for as much as you can...the older the debt the more eager the agency wants to be rid of it (you too).

Uhmm $400 is a far cry from $2300 ..thats only 17%..that's pushing but no harm in try. While you're negotiating...push for a 'pay for delete' so they'll take it off your credit report too.