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Question By
alexwfr

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Collections - I just want to pay off all the collections but get no where when I call.

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First Rule of Thumb

When Dealing with collection agencies, DO IT WRITING.  The people that answer phones have only one mission in life. To collect as much as they can, They can't make decisions. They will often promise anything to get a payment but they can't actually promise you anything.  

Before trying to negotiate, Write a Validation letter.  Google it for a template and more info on how they work. it is sent to the Credit Bureau.   Basicly the validation letter requires them to contact the collection agency and verify that the account is      A. Yours  and B. That they have the legal right to collect.  That includes all the legal paperwork required for them to collect.  In many cases they don't have the all the correct paperwork and they will have to remove the account from your report.  POOF  the account disappears.  

For any account that is validated,Your credit report will have addresses for each collection agency.  Write an "offer and compromise" letter, Google that too.  Mail to the collection agency,  Addressed ATTN: Collections manager. (the only one that can actually negotiate a deal)  Be sure that you will have the cash to pay the debt on hand because these are usually one time deals.  Start by offering 1/2 or less of the original amount, depending on the age of the account and the total due, if the account is closer to 7 years old  they often will settle for as little as 30%.   They often come back with an offer of their own. You can accept or write back with another offer. 

Thats how you deal with Collection agencies.  

Good luck 

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Well who are you calling? The collection company? Try calling the people who you owe the money too and see if you can make a negotiation with them so they can call off the collections.

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Reply by
EddyTX

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once a debt is SOLD to a collection agency, the original lender no longer has a legal right to collect the debt.  They took money from the collection agency for the account. The collection agency is the one you have to deal with. 

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