Debt settlement

[Whatamimissing]

What is the name of your state?Georgia
I had two credit card charge offs in the past, collection agencies now hold the accounts. I have the money to pay off; however, some companies offer to negotiate the debts down 50% or more. My question is are these companies legit?

 

[lostsoul23]

Is it the company that holds the debt that's offering to settle it for less, or an outside agency?

You can always check http://www.bbb.org and check the company through them, it will tell you if it's a member of BBB and what kind of record it has.

 

[Whatamimissing]

The collection agency that owns the debt offered to settle for @ .80 on the dollar, if it was a lump sum payment. Two months before they sent a letter saying that if I paid them half they would accept. This collection agency has numerous complaints and fines for being unscrupulous.

The reason I was considering using one of these companies is that it seems like they could get to the bottom line quickly and know all of the "tricks" so to speak. Thanks for the BBB tip.

 

[dallas702]

The collection agencies will get at least 50% of what they collect from you, so your original debt holders should be glad to settle. However, many creditors won't deal with you directly after they have turned the debt over to a collector. Ask the original creditors if they will remove the charge-off or collection status from your CR if you pay them directly.