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Posted in Paying Your Bills
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Tokoz

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Changing from paying collectors to the orignal debt
I've read a few places (including here) that, even after a debt has gone to collections, it's better to pay the original debtor than it is pay the collector. How does one go about paying back the original debt after the fact.

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Most Collection agencies

BUY the debts from the original creditors.  So the original creditors have no legal right to collect on the account any longer. 

To your advantage: Collection agencies buy the accounts for pennies on the dollar, Ususally less that 15%.  That gives room for negotiations.  

Pay the Collection agencies only after negotiating for A) a lower amount than owed and B) Having the negitive remarks removed for your credit report.  

Google "Offer and Compromise" and "Pay to Delete" for  more info and templates for the letters to write. 

Good luck

Top Contributor
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Offer in Compromise is a program for paying overdue taxes.  Pay for delete is the desired course for settling debts that have gone to collections and this negotiation MUST be done in writing, with copies of all communications kept by you so that you have proof of what was said on both sides of the issue.

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