Help with sold collection please

[Anonymous]

I had a charge off with Santander for approx. $10,000.  They recently sent an offer of settlement for $4,500.  We didn't have that at the time (but we do now).  However I just today got a letter in the mail from Client Services Incorporated saying the Santander account has been placed with them, and they show the Balance Due as OVER $15,000.  HOW IS THIS POSSIBLE?  I understand a collection agency can charge a fee for their services, but $5,000!?  Is this legal?  Can I still call Santander and try to settle for the $4,500 they wrote me about?   Please help me to know what is the best next step.

[Anonymous]

How old is the CO? Does the contract allow default interest to be charged? What is your states allowable interest on debt collection?

Yes, you certainly can call Santander.... Only they can answer the question as to whether they can/will settle the debt...

[Anonymous]

I believe once it's turned over to a collection agency the original creditors offer is then voided out. The collection company is most likely adding their cost along with the original amount of $10k plus interest. If it were me, I would call the original creditor and not mention receiving the letter from the collection agency and see what they tell you. Part of the issue you may have is the time that has lapsed between the first letter (Creditor) and the second letter (Collection Agency). In other words, if the letter you received from Sandtander with the offer was less than say 30 days ago, they may be willing to work with you - if it's been six months then mostly likely not. Again, this is only my opinion and suggestion - Best of Luck!