Collection Agency will only accept check by phone?

Question

I am trying to pay off an old debt with a collection agency. I understand that I need to get it in writing that it will be settled before I pay them; however, they tell me that they will ONLY accept check by phone. No debit cards, no cashiers check, only check by phone. I won't do it. I've been screwed in the past by doing this. I asked the CSR....what does someone do if they don't have a checking account?....she replied that they have to get someone who does have a checking account and give them the money directly. This sounds very fishy. She said this procedure was dictated by "the client" (Macy's/Marshall Field). Any insight?

Answer 1

brinn1269 - Legitimate collection agencies generally accept ONLY cashier's checks or money orders to pay off a debt.

DO NOT give this agency (or any agency) your checking account number.  The agency you are dealing with may be a 'secondary' collection agency.  

How old is the debt?  When a debt first goes to a collection agency, the agency tries to collect the full amount owed (and they get a percentage of what is collected, usually about 20%).  If the first agency cannot collect, then the debt is farmed out to other 'secondary' agencies.  

Your debt information may now be in the hands of MANY 'secondary' agencies.  Secondary agencies try to collect 'whatever' amount they can of the debt owed.  This gives YOU some leverage, because they will literally take PENNIES on the DOLLAR of the amount you owe.  You can literally MAKE THEM AN OFFER.  They will take anything because they get the lion's share of the money received (about 75%).  

The good thing about secondary agencies is you can pay very little to get rid of your debt.  The bad thing about secondary agencies is some of them are 'fly by night' and don't always report that they received payments for debts.  You may pay this agency and later have another secondary calling you trying to collect on the same debt.

*A couple of years ago, there was a company on The Internet offering web courses on how to open up your own collection agency and make big money.

Answer 2

Which collection agency is this? Is it Macy's internal collection department or a 3rd party?

Let me know and I can help you. I used to work for Macy's credit.

Answer 3

Hi,

I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate. I came across this company on NBC News Special Edition.Check it out here:

http://simurl.com/lagjaz

Answer 4

Never, ever give a debt collector your checking account #....They can take out way more than you authorized. There is absolutely no reason why they cannot take USPS money orders.....Tell them you're paying by that means only....If they don't like it...too bad.

Answer 5

You are correct in not providing this information.  In my experience (retired banker) they sometimes use this information to attempted to collect more funds, if you are not paying the entire balance.  Collectors do not make any money unless they can collect money from you.  I would contact the customer service number from one of your Macy's/Marshall Fields bills and advise them you would like to make a payment.  I have not seen a creditor refuse to take money that is owed to them.

Answer 6

If the debt is more than 4 or 5 years old. the SOL probably ran out and they can not force you to pay, period. If you still want to pay to clear your mind, tell them money orders or no deal. If it was me, I wouldn't even give them the satisfaction of a call back.

Answer 7

Deal with the original creditor directly, don't deal with the collection agency.

Answer 8

Go with your first mind don't give them access to your bank account info what difference does it make if its money order its money they must don't want it that bad!

Answer 9

Either they want a check or they don't.  I wouldn't give anyone access to my checking account.