Collection agencies usually work on a commission basis. They receive assignments to collect
on delinquent accounts and then keep a piece of whatever they collect.
Since the only way
collection agencies can make money is to work out deals, they settle accounts for 50% or less on
a routine basis. In this example, the client negotiated
a 45% settlement on a debt balance of $5,763, which resulted in a savings of $3,169. There is
simply no reason to be afraid of dealing with collection agencies, and their involvement can
actually help in some cases. There are numerous websites and so-called "experts" that tell you
to never settle an account with a third-party collection agency. What nonsense! There is a
legitimate need for the collection industry to exist, and I personally have nothing against most
of the companies doing business in this industry. Sure, there are bad actors as with any industry,
and some agencies should be avoided for that reason. But the important thing is to get your debts
RESOLVED, and settling with a collection agency is one way to accomplish that goal.
Note: The image file below is a scanned reproduction of a faxed original. The
client's name, address,
and account information have been deleted to protect their privacy. No other alterations have been made
in any way to the originals or the digital images.
