If you’re living at home with your parents and they are supporting you, all the lines can be zero including the expense lines.

I agree with Ottawa Chap. I did 99% of my settlements directly with the creditor. If you’re expecting a low settlement from a collection agency, it happens very rarely.

"A fairly common misconception is that if you pay direct to the creditor, the agency doesn't get paid. This isn't true, the agency will still receive their commission."

I could see that being the case while the account is still contracted out to a 3rd party agency, in this case - AIC. However, when the contract is up for renewal, if the account is not re-assigned to another agency and a settlement agreement is [then] reached in-house, then no 3rd party agency would receive a comission.

My point: If the vultures at AIC are being unreasonable, then one should refrain from dealing with them - instead go straight to the creditor and indicate that one wishes to deal directly with them. Let the point be known that you will not deal with the agency, however, you are aiming to resolve the debt via a mutually acceptable arrangement.

"Keep in mind that it was an agent from AIC who was trying to persuade you to avoid the original creditor. Doing so would be taking potential revenue out of their company's pockets, so of course she's going to discourage any ideas of that nature."

A fairly common misconception is that if you pay direct to the creditor, the agency doesn't get paid. This isn't true, the agency will still receive their commission.

"The key to filling out the forms is fill in as many zeros as possible"

Except on the expense lines =]

Speak to any senior rep in Capital One's in-house collection dept.

Remember, there is no law in place which would indicate that you must deal with a collection agency, so... If Capital One would like this account paid off, then they should be at least open to hearing what you have to contribute to that goal.

Who in cap one would I get ahold of? I mean who would I ask to speak too?

Okay, thanks guys for all your help.

Keep in mind that it was an agent from AIC who was trying to persuade you to avoid the original creditor. Doing so would be taking potential revenue out of their company's pockets, so of course she's going to discourage any ideas of that nature.

Also, even if you were to contact Cap One and get referred back to AIC, it might be best to obtain the contact info for a rep within their in-house collection dept.. This way if your offers to AIC are either ignored or rejected, you can inform this rep of your offer. I/E: Demonstrate to the creditor that your intent is genuine; who knows? That might just intice them to retract your account from AIC once the placement contract is up.

the lady on the phone told me that capital one would just return my collection to them. I even suggested that I should call capital one and that is what she told me. You guys might have something going there though.

Great advice AJ & OC. Thats the way to go on this one.

Bill also added some good value and makes a case for payments but his method will reset the limitation period and as OC pointed out, unless payments are bringing down a considerable part of the principal you aren't making any forward progress.

Also making monthly payments will almost never stop the collection harassment if the debt is in a collection agency.

Settle the debt for less then you owe in one lump sum if you can.