Trusting Collection Agencies

[Anonymous]

Here's my issue: my husband currently owes $8500 in legal bills. He paid that amount down from $25,000 but hit a rough spot and went months without making a payment.

In that time, his lawyer died and he estate sold the account to a collection agency. The agency sent a letter and called my husband last week. They said if he paid them the full amount within 30 days they wouldn't report it to the credit agencies. However, they offered to settle the account for $5,000.

I am afraid that if we pay the full $8500 they will ding his report anyway. We really don't have the money and would really be stretching it to come up with $5,000 in 30 days.

The agency, by the way is FirstStates Financial.

Any help is appreciated!

TIA

[Anonymous]

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noni wrote:
Here's my issue: my husband currently owes $8500 in legal bills. He paid that amount down from $25,000 but hit a rough spot and went months without making a payment.

In that time, his lawyer died and he estate sold the account to a collection agency. The agency sent a letter and called my husband last week. They said if he paid them the full amount within 30 days they wouldn't report it to the credit agencies. However, they offered to settle the account for $5,000.

I am afraid that if we pay the full $8500 they will ding his report anyway. We really don't have the money and would really be stretching it to come up with $5,000 in 30 days.

The agency, by the way is FirstStates Financial.

Any help is appreciated!

TIA

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Most collection agencies don't report within the first 30 days.

Just ask for something in writing that states they will not report the account. Also, if settling get a letter stating that with a payment of $5000 the account will be considered paid in full with a $0 balance and that they will not try to collect on the remaining amount or sell/assign the debt for another company to collect on.