I'd Rather Pay the Credit Card Company than the Collection Agency...?

Question

I have an outstanding debt of a couple thousand dollars with American Express, which they've turned over to a collection agency... and I'm now in a position to pay off about 90% of the debt at once. I called the collection agency to set up a payment, and the person was so nasty to me on the phone, I'm wondering if I can just send the payment to American Express even though they've turned the debt over to someone else.

Answer 1

Dont take it personally - they have to be nasty, as you have already "proven" that you will not pay.  The debt has been sold to this company, and if you ignore the problem, it will get worse.

Pay the company, and when you are done, continue to pay the same amount into a nice savings account instead of getting into more debt

Answer 2

No, the original creditor does not own your debt anymore. The collection agency paid them off. You owe the collection agency. When you call back, tell the collector who answers that you would like to speak to a senior collector regarding a cash settlement. Most creditors will accept 90% of the balance as a settlement.

Answer 3

Good move.

Amex is one of the companies who will "blacklist" those who default on their credit cards, and if you ever want to have an Amex card again you'd need to pay this off before they'd open a new account for you.

I don't think Amex sells their delinquent accounts, so you should call their customer service and see what you can work out.

Answer 4

I believe the original creditor must deal with you if you so choose.  You can probably negotiate a settlement with them.

Answer 5

your credit card company sold your account to the collector so you have to work with them. i had the same problem their really rude but over time if you dont pay the account keeps getting sold to other collectors and the payment lowers.