I’ve heard that debt collectors work on commission, and their goal is usually to get a high settlement. I’m struggling to pay the 65% balance they’re asking for, so I was hoping they might agree to around 45%. They keep hinting that if I don’t pay up, it could get referred for legal action.
If I say something like, “Alright, maybe it needs to go to an attorney since I can’t do your amount,” what do you think would happen?
A. I make them angry, and they insist on the 65%.
B. They’re more willing to lower it to meet their end-of-month goal.
C. Nothing changes at all.
Any advice is helpful, as I am actually considering going to court. I don’t have the income to keep up with the $400 payment, especially since I can’t find work in my field. Even if I get a lower-paying job, $400/month just isn’t doable.
EDIT Just to clarify, it’s an in-house debt collector, so the bank hasn’t sold it off yet.
A lot of people here are suggesting low offers, but honestly, 45% is already pushing it. For first-party collections, they don’t have to validate anything under FDCPA, so it’s usually a take-it-or-leave-it deal.
Some folks talk about paying 10% or 20%, but those offers aren’t taken seriously. Imagine someone asking you to take 10% of your paycheck – it’s not realistic.
If it’s still with the original creditor and isn’t a huge amount, you could wait until it goes to a collection agency; they tend to offer bigger discounts. Is it a medical debt? If so, there might be hardship programs you can look into.
@Shawn
With credit card debt, they often sell it to third-party agencies eventually, and those guys pay really low amounts to get it. They can sometimes offer more flexibility on deals.
If your APR was high, maybe that’s why they’re giving a better deal right now.
I used to be a debt collector (in the U.S.). Not all collectors work on commission, especially not in-house ones. Legally, they don’t have to settle for less than the full balance.
You could make a 45% offer and see if they bite. If they agree, get it in writing as paid in full. If they decline, just let them know you can’t start payments until you’re employed again.
Avoid court unless you truly don’t owe the debt. The judge’s role isn’t to set up payment plans but to decide if you owe the debt or not.
And never threaten the collector. Calls are usually recorded, and threats can lead to legal trouble.
It’s still in-house, and they’re polite, so I wouldn’t be rude about it. I just thought saying, “Well, maybe this will need to go to attorneys” might get them to budge.
I know I owe it, so there’s no point asking for validation. My payments were directly from my bank with them.
I’m leaning toward offering 45%. They’ll probably counter with a higher rate, though
@Shawn
This is a negotiation, so just remember, they know you’re currently unable to pay, don’t have income, and maybe your credit isn’t perfect. You could mention that a friend or family member is willing to help with the 45%, but nothing beyond that.
If they don’t work with you, the debt could go to a collection agency, and they might be more open to a lower deal later on.
Stay patient, keep explaining your situation, and maybe they’ll agree. Good luck; hang in there!
@Shawn
Honestly, if it comes down to court, I’d show up. You’re clearly trying to work something out, and a judge may consider that if you have a solid reason why you can’t pay right now.
