Hi,
My account just got transfer from one collection agency to another one.
I was trying to negotiate a settlement for paying off just part of the debt.
The first offer I got from the first agency is to pay $6000 out of a $20000 debt.
The current agency offer me the same deal and I had offer to pay $4000,
After that the agent told me that he need to submit my offer to the bank,
Two days after that he called me back and told me that the bank is willing to settle the debt for $8400. And that I should make a new offer in between.
How is it possible that this offer from the bank is greater then before?
How can I know if the collection agency work for the bank or own the debt?
How can I know if this agent is lying to me in order to get more money?
When should I expect a law suit if I will not pay it off?

You probably can't know, at least until they file suit whether they own the debt or not. So you may not know whether they are telling the truth. The chances are likely that they aren't telling the truth. On the other hand a settlement of $8400 on a $20K debt is pretty good.

But you pay nothing unless you get it writing.

I have a personal saying if a collect agent mouth is moving, they are lying.

Ask them to put their offer in writing, no offer is real unless it is really in writing,