0
If a collection agency is after a small amount of debt and you pay that amount in full how will this payment improve your credit score?
Wiki User
∙ 8y ago
It can improve your credit score a little, but to make the best improvement possible contact them and negotiate to have them remove their listing on your credit reports completely in exchange for your payment in full. This will help your credit FICO score the most.
Wiki User
∙ 8y ago
Add your answer:
Earn +20 pts
What is the use of a collection agency debt settlement?
A collection agency debt settlement means when someone is in debt and a company offers a settlement amount to the creditors owed. Payment arrangements are discussed and made, sometimes the amount is way less than the actual bill.
Can a collection agency Garnish if paying not full amount?
no
In order to pay off your collection accounts who do you contact?
Whomever is sending you the bills ... if the collection agency is sending notices, then contact them. You can also contact a debt counseling agency who will offer (for a fee) to intercede on your behalf and possibly get a lower percentage rate and a lower monthly payment. You then pay them the monthly amount due, then they distribute the funds to where they need to go.
Why original creditors sale accounts to a collection agency?
Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.
If a creditor has written off your debt can a collection agency then come after you for the amount?
If the debt has been cancelled, no; if the debt has been charged off, yes.
How do you pay a collection account?
Have the collection agency send a written agreement accepting the settlement or payment amount agreed upon BEFORE rendering any payment(s).
What is the use of a collection agency debt settlement?
A collection agency debt settlement means when someone is in debt and a company offers a settlement amount to the creditors owed. Payment arrangements are discussed and made, sometimes the amount is way less than the actual bill.
What if collection agency won't accept payment that amount to 25 percent per month of the full debt?
By federal law and most collection agencies' policies, partial payments are not manditorily accpeted. Collection agencies are not required by law to accept anything less than payment in full. If the agency has refused 25% monthly of the full amount to be paid in full in four months, I reommend sending the payment with an explanation of this to the original creditor. Chances are your payment and arrangements will be accepted.
Can a collection agency force a disable person to make a payment based on the amount they receive each month?
your disability can not be touched, if this is the only income you have!
If the collection agency amount is more than the creditor amount which amount do you legally have to pay?
A collection agency legally require the amount of the debt, plus any other charges/penalties incurred in the collection of the debt.
Can a collection agency ask for my income amount?
no sorry
Can a collection agency Garnish if paying not full amount?
no
Who sent you to the collection agency?
I presume your question is "how did your debt wind-up at a collection agency". There are 2 methods: (1) the original creditor sold your account to an agency for a price that is a fraction of the outstanding balance on the account (so the collection agency now is your creditor legally), (2) the original creditor contracted with a collection agency to get you to make more payment on the debt than you have while interacting with the original creditor only. In either case, a collection agency is a company that makes a profit by getting debtors to make a payment of sufficiently greater amount (than they had been making to the original creditor) such that a greater return can be realized from this continued effort to collect the debt, and collection agencies usually are profitable companies. In my personal opinion, the first method (# 1 above) is used in the vast majority of delinquent debt collection situations. Any creditor organization of at least medium business size has enough staff to attempt to coax the debtor to make more payment, so there would be no reason to contract a collection agency to try again. That latter point being understood, collection agencies sometimes resell a debt account to another collection agency when they give-up on trying to get more payment from the debtor (and the account has not been settled).
Is there a dollar amount for collection agency's to report to the credit bureau?
A collection agency can report you to the credit bureau for any amount of money. There are agencies that will report for amounts under a hundred dollars.
If a medical bill was sent to an agency but they refused to take payment are you still held responsible for that bill?
A collection agency/creditor does not have to accept any payment amount rendered unless the terms were included in a written contract. The refusal of the agency to accept the payment does not invalidate the debt the full amount is still owed by the borrower/debtor. Call them and get more information as to why it was not accepted. Keep asking until you fully understand what the issue is. Be sure you get a paid receipt for your files once you get it resolved.
What is the most a collection agency can garnish from your check?
this is an amount determined by a judge
Does a payment accepted from a collection agency bind them to that payment?
Only if the debtor has proof that an agreement was made for the amount rendered being acceptable. The standard rule is "get everything in writing" before making any payment. In some states verbal contracts are legally binding but are usually difficult to prove.
