Make sure you get that in writing... along with agreement from the original creditor that this is acceptable... or proof that they have the authority to do so.

Can a collection agency offer you a pre-authorized payment plan. I have a 10K debt which the collection agency has said they can settle for 5500 if i pay upfront. I told them the best i could do was 350 per month.

They said fine they would take that for a 5month period and if the timie comes when i have extra money they will always offer a pay out of 50% of the balance.

Is this right?