How do I handle a Collection agency?

Submitted by LMDJR on Tue, 02/16/2010 - 20:08
Forums

A third party collection agency has bought my debt before I had a chance to settle with the original company.
I contacted them about the debt. They are not willing to agree to a setlelement that I can afford. I wanted to settle for a percentage and pay monthly but they would not agree to anything except one large settlement that I can't afford.
I don't want to go to court with this. Would they accept monthly payments until it was paid in full?
Any advice?
I have settled with 3 others without hesitation.
Help!

Since you have already settled three then you know how it goes. They can do it if they want to, some play hardball while others will work with you and get the debt taken care of.

If you don't mind, what is the name of the company, there is probably someone here has probably dealt with the company and can tell you what their habits are, weather they will give in or not.

Anyway, I am sure that once you list the company that you will be surprised on how much folks here will know about that company.

Wed, 02/17/2010 - 03:54 Permalink

Hi LMDJR ,

While settling a debt, it is always better to pay the amount in full. Moreover after settlement the debt amount gets lowered by at least 40-60%. However, if you can't afford to pay the amount in full, you can send a hardship letter to the collection agency attaching a copy of your monthly income and expenditure. Mention that, due to your financial condition you won't be able to pay the amount in full, but you are willing to pay it on monthly basis. Send the letter through certified mail.

However before starting to pay off the dues, remember to get a written copy of the settlement with the agency.

Wed, 02/17/2010 - 07:42 Permalink

which collection agency? What state? what is the date of first delinquency?

Wed, 02/17/2010 - 11:21 Permalink
Anonymous (not verified)

The company that owns the debt now is Hosto, Buchan, Prater and Lawrence with offices in Arkansas, Texas, and Tennessee.
Probably my only other option is to set up monthy payments until it is paid off. It has been a year since a payment has been made to Washington Mutual.

Wed, 02/17/2010 - 14:04 Permalink
Anonymous (not verified)

Tennessee

Wed, 02/17/2010 - 15:05 Permalink