Bill Collectors????

[DFD]

Anybody know how they work and operate. My neighbor lost her job, husband left her and left her all the bills. Now she pays for her mortgage and car but not the bills so bill collector started calling in. Now she made a deal with 3 of the collector that if she pays 50% of what she owes to them she is in the clear. The way I understand this was she Bank One, she did not pay or cannot pay Bank One, Bank one sells her acct to a collecting agency and she pays the collection agency for 50%. And why do I pay mine on time and regularly then ??? she got a better bargain

What do you think ???

 

[disbridemimi]

she didnt get a better bargain, it will be on her credit report as a charge off by the credit company and a settlement with the collector, so she will have bad credit.

 

[raysnkaysmom]

Anybody know how they work and operate. My neighbor lost her job, husband left her and left her all the bills. Now she pays for her mortgage and car but not the bills so bill collector started calling in. Now she made a deal with 3 of the collector that if she pays 50% of what she owes to them she is in the clear. The way I understand this was she Bank One, she did not pay or cannot pay Bank One, Bank one sells her acct to a collecting agency and she pays the collection agency for 50%. And why do I pay mine on time and regularly then ??? she got a better bargain

What do you think ???

Heck, I don't know.. but I wanana only pay 50%
(of course, not at the expense of what she's having to go through)

 

[DFD]

she didnt get a better bargain, it will be on her credit report as a charge off by the credit company and a settlement with the collector, so she will have bad credit.

but dont that go away in 7 years??? and its better than filling bankcruptcy(sp).

Heck, I don't know.. but I wanana only pay 50%
(of course, not at the expense of what she's having to go through)

I know what you mean. The husband left with the secretary and her youngerst thinks daddy just went on vacation.

 

[HelenePA]

I think she will have to claim the other 50% as income on her next income tax filing

 

[DFD]

I think she will have to claim the other 50% as income on her next income tax filing

Yikes! I dont think she knows about that... am going to ask her later. Thanks for the heads up.

 

[Cheshire Figment]

Tell her to make sure it is a written agreement with the Collection Agency. And that when she is done with the payment they will report it as having been paid in full. If she does not have it in writing it is not worth the paper it is (not) written on.