Debt collector question and worries

Question

Boyfriend received a letter from debt collector. Debt is from an electric bill that he could not pay - he was on disability for significant medical issues. The letter says that this is final letter before sending it back to the original client- if he doesn't pay in 30 days. Debt is for 700, which I know is not an incredible amount, but he still can't pay it due to medical/personal circumstances. How should we proceed. Should we wait to see what original client does? The most we can pay is $200. Should we call the credit agency and try to settle that way? Time is running out...

Answer 1

Most companies are willing to work with people when they are having financial difficulties as long as they are upfront about it. I would suggest actually going to the original biller (the electric company) and trying to work out a deal with them. The collection agency is going to push and badger you for everything they can because the more they get from you, the higher a commission they receive.  

Answer 2

You can always try and settle. Call them up and see if they will accept less, which they usually do. That or they will make out a payment option which will go with your finances. Tell them you can pay $200 right now, and tell them how much a month you can pay.  

Answer 3

Well first of all if they want to return it to the original client that would be awesome...that's actually great so when he starts paying the account will show as current instead of in collections.

I say let them send it back but in the event that they're bluffing you can call and negotiate a settlement or a payment plan (which is better than settling for credit purposes) and then also negotiate a pay for delete so it can be removed from your boyfriend's credit report once he's done paying. Make sure you get that in writing.