What if collection agency will not settle for the amount i offer?

Question

what if a collection agency will not settle for the amount that i owe. they are playing hardball but i soo far i received two different couter offers. i coan not afford their offers since first it was 95% and then 90%. it doesnt make any sense because then i might as well pay the whole amount. will they eventually settle for the less amount that i offer?

Answer 1

yes but it will take some time

Answer 2

They do not have to settle--it is a courtesy.  Advise them of your situation, what you can afford.  Generally, they will go down, but if you send less than the amount you owe and they accept it--it does not mean they are agreeing to your terms, only that they are applying it to your debt.  If you come to an agreement, get in in writing--before paying.  Keep in mind also, when doing a settlement, there can be tax repercussions.  In doing a settlement, any amount over $599 of the amount not paid, is reported to internal revenue.  They consider this income, and you will receive a 1099 for this come tax time.   Good Luck!

Answer 3

Be firm, and they'll keep coming down. They might not get down to 10% or something that low, but eventually they'll get to a reasonable amount that you can afford.

Good luck!

Answer 4

Depends on what you offered.  Most of the time they will settle, but remember the collection agency has purchased the amount owing from whoever you owed.  If they paid 50 cents on the dollar, then they want to also make some money on the deal as well. 90-95 is a high amount, but you do owe 100% of the debt.  If they are adding to the amount additional interest then I would start paying back some of the amount while you continue to negociate.  It may get to the point were as the amount lowers they may be more receptive to a settlement amount.  

If need be they can garnish your wages as well.

Answer 5

No they are indeed playing hard ball...send them whatever you can afford, believe you me they will accept it....if they do they are automatically agreeing to what you can pay. That's the way the ball bounces. Before you pay off the last amount see if you can squeeze a (pay for delete) out of them and be sure to get it in writing ONLY.