Ask Experts Questions for FREE Help !
Ask
    Drowning75's Avatar
    Drowning75 Posts: 6, Reputation: 1
    New Member
    		  
    #1

    Oct 29, 2008, 01:36 PM
    Third Party Collections
    Does anybody have any idea what these 3rd party collections agencies pay for your debt from these big banking companies? And what is a reasonable amount percentage wise they will settle the amount. I would like some insight on how these companies think.
    mlr08's Avatar
    mlr08 Posts: 46, Reputation: 2
    Junior Member
    		  
    #2

    Oct 29, 2008, 04:51 PM

    Pennies on the dollar. I believe the rule of thumb is to try and settle for 70%.

    This Squidoo lens offers some interesting facts about how HUGE this industry is and how they operate, How To Answer a Credit Card Debt Lawsuit ~ Everything YOU Should Know About Third Party Debt Collectors
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #3

    Oct 29, 2008, 06:59 PM

    Yes, what they pay will depend on the age of the loan and different ratings they use on the paper and its @ value.

    But from pennies to 25 or 30 percent.

    The older the debt the cheaper the settlement may be.
    I would start at 50 percent and see what happens
    Drowning75's Avatar
    Drowning75 Posts: 6, Reputation: 1
    New Member
    		  
    #4

    Oct 30, 2008, 08:10 AM
    Thank you all, and thank you MLR08 for the great link, very helpful. :)
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Third Party Collections [ 2 Answers ]

I received a letter today from a 3rd party collections agency about a citibank mc account. I didn't recall my husband ever opening a citibank card so I called citibank direct. They told me they had no record of an account... so I called the collection agency. They informed me this account was...

How do you come to a settlement with 3rd party collections? [ 3 Answers ]

I'm helping a friend with some (old) student loan from 15years ago. It has went to a third party collection "Total Recovery Toronto Ontario". She has admitted to them she does owe the money which is around $8000.00 - and has made some payments to them in the past (last payment to them was June...

Has the Democratic Party always been the cry-baby Party? [ 21 Answers ]

This is an honest question and I’m looking for an honest answer. Since I can remember Democrats talk about what a lousy country this is and constantly complain about the “unfairness” of life, the “evils” of big business, the never-shrinking scourge of racism and homophobia, and the inevitable...

Third Party Collections [ 1 Answers ]

My son received a settlement offer from a collection agency for half of a balance due to Verizon that was already paid to GTE the original phone company. GTE sent it to collection and I paid it. So it was on my son's credit report for 7 years as late but paid. Now 7 years later another agency is...

View more questions Search