I am new to this forum however I have been browsing posts here for the past two years (when a collections account appeared on my credit report for the first time).
Recently, I was trying to remove a collections account for $ 1400.00 from my credit report from Fairs Collections & Outsourcing. Earlier this year in March, I had received a letter from FCO willing to settle for around $ 900 ($ 250 of the $ 1400.00 had already been paid for the collection, not by me). I ignored the letter as I wanted to settle for a lower amount and have the debt deleted. Fast forward:
In May, I had to find a new apartment to lease. Many of the apt buildings in my area will not lease to someone with an open collections (from a property mgmt co.) on a credit report. Apt buildings (clean ones) want the collections paid in full. So in July, I sent a pay for delete letter to FCO offering $ 600 for the account to be deleted. A week later, FCO responded countering with $ 900 and to report the account as “settled” if paid by a certain date. I refused that offer. I soon learn this agency will not do pay for deletes.
Fast forward to September, I really want this apartment and an agent tells me to pay off the collections account. I send a letter to FCO stating that I will pay the full remainder on the account $ 1150.00, if they marked as “paid in full” and reported to credit reporting agencies within 5 days of receiving payment. So…here is where it gets interesting. A little over a week later, I receive a letter from FCO stating they will accept to settle the account for $ 700 therefore I would only have to pay them $ 450 (they had already received $ 250) then they would mark the account as settled.
Does that last letter make any sense? Why would a collections agency counter my offer to pay the remaining balance in full with an offer to pay less on the account and mark as settled? Why would a collections agency accept less money, if you offered them more money? This just doesn’t make any sense but is a great offer.