Written by randall on February 23, 2010 – 4:10 pm
Buying and selling bad debt is the practice of collections. Bad debt is bought and sold everyday and if you have been contacted by a collection agency, chances are the debt that the collection bureau is attempting to collect was sold to them by a creditor that you once shared a relationship with.
Bad debt is commonly bought and sold for much less than the original amount owed. If you see that the amount the collection agency is billing you for is more than the amount you owed the creditor, keep in mind that there are fees generally added to the account for processing and interest. It is not uncommon to have multiple collection agencies listed on a credit report all showing information in an effort to collect.
There are many ways to deal with collections. The most important thing to remember is that an un-paid collection is as damaging to a credit report as a paid collection in the credit scoring model. There is strong motivation for the collection agency to collect not only the added fees, but also the full amount of the account.
The collection agency account representatives are generally paid a commission on the amount collected, hence the higher amount that you pay, the higher the amount of commission earned. Negotiation is the only tool for resolution that most favors the consumer. Our years of experience negotiating with collection agencies and affiliated services has proven over and over again that our negotiation program assures you pay the least amount possible and achieve the highest credit score benefit.
It is our mission to first verify the collection account information, secondly, see that clients pay the least amount to settle the collection account and then work to eliminate the collection account information from the credit file.
