by cadude » Sun Dec 16, 2007 08:36:14 PM
Settlements are not big with collectors or the banks for that matter, when the account is a "first assigned" debt. You still can however settle it, the amount will never usually be below 80%.
It also depends on the amount owed, usually if under $5,000. When it comes to Canadian Tire Mastercard debts (especially with MJR) it's 80% -- I don't work for them, but I know this from a source. The agency can also request a below parameter settlement offer, which needs to be approved by the creditor. This is usually offered to debtors who owe a high balance. The higher the balance, the more money you save (example) you owe $50,000 (at 80% settlement) you can save $10,000 compared to a $5,000 debt where it only works out to $1,000. And that is just a round figure, most collectors won't offer a settlement right to the penny, just to cover their own ass -- in case their math skills are not that wonderful.
When it comes to 2, 3 and 4th assign debt, collectors are more inclined to offer settlements, because at this point, the settlement amount increases to 70, 60 and even 50%
Me personally, love the type of accounts that have the 50% settlement and 50% commission quota. It allows me to set the bar high and work with the debtor to find out what they can truly pay back to their debt, but also helping them save some money in some of the interest that has accrued -- because don't get me wrong, I'm hear to help debtors just as I'm here to help my client collect their money as I am here to help my self put food on my own table.