Paid collections will be removed from reports with the new law. Its been known the older the debt. The lower the settlement will go. Once its about ready to fall off the cliff. 30% or less in some cases. Being newer usually wont happen. But so far so good.
@Iusedtolurk wrote:I was under the impression that most Collection Agencies purchase debts pennies on the dollar and generally will settle for less than the debt because they are making a killing anyway.
I started helping my nephew with his credit the other day and saw he had 6 medical collections 4 around 2 years old and 2 new ones around June (Paragon Revenue Group).
As he has a little money available to currently pay the debts I tolds him to call the companies and try to settle.
3 of the older collection agencies accepted 50% payments to settle debt.
1 settled for 70%.
The 2 new collections (less than a year wouldn't budge they wanted the entire debt owed.
I told my nephew he will just have to bite the bullet and pay them in full because he will be better off not being penalized for years with score suppression and negative consequences.
Once these 6 collections are paid and deleted his scores should receive a hefty boost.
So basically New Collections don't settle for less it seems. YMMV
1. No reason to assume they are being 'deleted' any time soon.
2. Can't generalize from this one scenario that new collections won't settle.
@SouthJamaica wrote:
@Iusedtolurk wrote:I was under the impression that most Collection Agencies purchase debts pennies on the dollar and generally will settle for less than the debt because they are making a killing anyway.
I started helping my nephew with his credit the other day and saw he had 6 medical collections 4 around 2 years old and 2 new ones around June (Paragon Revenue Group).
As he has a little money available to currently pay the debts I tolds him to call the companies and try to settle.
3 of the older collection agencies accepted 50% payments to settle debt.
1 settled for 70%.
The 2 new collections (less than a year wouldn't budge they wanted the entire debt owed.
I told my nephew he will just have to bite the bullet and pay them in full because he will be better off not being penalized for years with score suppression and negative consequences.
Once these 6 collections are paid and deleted his scores should receive a hefty boost.
So basically New Collections don't settle for less it seems. YMMV
1. No reason to assume they are being 'deleted' any time soon.
2. Can't generalize from this one scenario that new collections won't settle.
Actually there *is* a reason to believe they'll be deleted soon. Paid medical collections will no longer show on reports as per the new reporting rules the three bureaus came out with July 1st, 2022.
@Iusedtolurk, yes, typically CAs are willing to negotiate and settle for far less the older a debt is and the closer it is to falling off reports. This is true for normal (non-medical) collections as well.
@OmarGB9 wrote:
@SouthJamaica wrote:
@Iusedtolurk wrote:I was under the impression that most Collection Agencies purchase debts pennies on the dollar and generally will settle for less than the debt because they are making a killing anyway.
I started helping my nephew with his credit the other day and saw he had 6 medical collections 4 around 2 years old and 2 new ones around June (Paragon Revenue Group).
As he has a little money available to currently pay the debts I tolds him to call the companies and try to settle.
3 of the older collection agencies accepted 50% payments to settle debt.
1 settled for 70%.
The 2 new collections (less than a year wouldn't budge they wanted the entire debt owed.
I told my nephew he will just have to bite the bullet and pay them in full because he will be better off not being penalized for years with score suppression and negative consequences.
Once these 6 collections are paid and deleted his scores should receive a hefty boost.
So basically New Collections don't settle for less it seems. YMMV
1. No reason to assume they are being 'deleted' any time soon.
2. Can't generalize from this one scenario that new collections won't settle.
Actually there *is* a reason to believe they'll be deleted soon. Paid medical collections will no longer show on reports as per the new reporting rules the three bureaus came out with July 1st, 2022.
@Iusedtolurk, yes, typically CAs are willing to negotiate and settle for far less the older a debt is and the closer it is to falling off reports. This is true for normal (non-medical) collections as well.
Is a settled collection the same as a paid collection? I'm just asking.
@SouthJamaica wrote:
@OmarGB9 wrote:
@SouthJamaica wrote:
@Iusedtolurk wrote:I was under the impression that most Collection Agencies purchase debts pennies on the dollar and generally will settle for less than the debt because they are making a killing anyway.
I started helping my nephew with his credit the other day and saw he had 6 medical collections 4 around 2 years old and 2 new ones around June (Paragon Revenue Group).
As he has a little money available to currently pay the debts I tolds him to call the companies and try to settle.
3 of the older collection agencies accepted 50% payments to settle debt.
1 settled for 70%.
The 2 new collections (less than a year wouldn't budge they wanted the entire debt owed.
I told my nephew he will just have to bite the bullet and pay them in full because he will be better off not being penalized for years with score suppression and negative consequences.
Once these 6 collections are paid and deleted his scores should receive a hefty boost.
So basically New Collections don't settle for less it seems. YMMV
1. No reason to assume they are being 'deleted' any time soon.
2. Can't generalize from this one scenario that new collections won't settle.
Actually there *is* a reason to believe they'll be deleted soon. Paid medical collections will no longer show on reports as per the new reporting rules the three bureaus came out with July 1st, 2022.
@Iusedtolurk, yes, typically CAs are willing to negotiate and settle for far less the older a debt is and the closer it is to falling off reports. This is true for normal (non-medical) collections as well.
Is a settled collection the same as a paid collection? I'm just asking.
There's been DPs of medical collections being deleted even if settled for less, yes.
I don't think it is a law. It was a PSA from the big 3 due to some type of influence (press, lobby, lawmaker, bottom line, strategic?).
If those medical CAs are below $500 then just dispute with EX and TU and it's instant-ish removal similar to an EE. EQ claims to have to wait until 1/1/23 per CSR back in July. I don't have experience on paid or $500+ ones. Good luck!
@Vuby22 wrote:I don't think it is a law. It was a PSA from the big 3 due to some type of influence (press, lobby, lawmaker, bottom line, strategic?).
If those medical CAs are below $500 then just dispute with EX and TU and it's instant-ish removal similar to an EE. EQ claims to have to wait until 1/1/23 per CSR back in July. I don't have experience on paid or $500+ ones. Good luck!
Right, it's not a law, but a new set of rules the CRAs themselves came up with.