cancel
Showing results for 
Search instead for 
Did you mean: 

Rebuilding Credit

tag
srjjames
Valued Member

Rebuilding Credit

I'm confused....is it better to try to settle debt with collections agency or the original creditor.  I just set up payment arrangements with collections company for less than the full amount.  Was I suppose to try to settle with the original company? Would that have been better?

Message 1 of 4
3 REPLIES 3
llecs
Moderator Emeritus

Re: Rebuilding Credit

You settle with whomever owns the debt. If the OC reports $0 and the CA a balance, then very likely the CA owns it. Or if the OC reports the debt as sold, then likely the CA owns it. If the OC reports a balance and the CA is nowhere to be seen, other than bugging you, then likely the OC assigned the debt and you'd want to try settling with the OC first, if they let you. A response to a DV letter will usually establish the debt ownership.

Message 2 of 4
srjjames
Valued Member

Re: Rebuilding Credit

OK, thanks for the info. Now I've read different things on this matter. If you're asking for a settlement, what is a good percentage to start off with?  Also, I have a judgment against me for about 5,000.  It's with an attorney now.  I would like to offer a settlement since I should be receiving income taxes soon.  I was wondering what would be a good settlement to ask for.

Message 3 of 4
llecs
Moderator Emeritus

Re: Rebuilding Credit

That's always a personal preference. When dealing with an OC, I like to offer 100% because that maximizes the odds for a PFD acceptance if at that point or sets me up for improve odds for a GW down the road. IMO, for me anyway, reporting is more important than the money. However, if I had a summons appear for a judgment-to-be, then I'd consider a settlement too. Maybe I'd offer 100% of what I knew I owed and offer a settlement less attorney and court fees, and maybe less interest too (from collections going forward).

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.