My account is with a collection agency, can I negotiate with my original creditor instead?
I'm being sued on an account charged off in 2007. I dont trust the collection agency because of the many negative reviews, and complaints against it. Will I be able to contact the original creditor and pay them instead?
A collection agent has a right to collect a debt regardless of its reputation.
In your case, it is impossible to say whether you will have success with contacting the original creditor and settling the debt directly. It's possible that the collection agent could be working on behalf of the original creditor to collect the debt on their behalf. If so, then you may be able to negotiate with the original creditor directly (but keep in mind this does not mean you will be successful).
On the other hand, if the collection agent bought the rights to collect on the debt from the original creditor, then it is now the creditor of record. In this case, there is no option of negotiating with the original creditor.
I suggest you read some tips about negotiating a settlement.
If you are being sued, whether you negotiate with the original creditor or the credit agent, you need to respond the summons. To read more about what can happen in the collection process I encourage you to read Collections Agencies, Collections Laws and Your State's Statute of Limitations.
I hope this information helps you Find, Save, and Learn.
If you are struggling with debt, you are not alone. According to the NY Federal Reserve total household debt as of Quarter Q2 2023 was $17.06 trillion. Student loan debt was $1.569 trillion and credit card debt was $1.031 trillion.
A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.
Collection and delinquency rates vary by state. For example, in Arkansas, 15% have student loan debt. Of those holding student loan debt, 10% are in default. Auto/retail loan delinquency rate is 5%.
While many households can comfortably pay off their debt, it is clear that many people are struggling with debt. Make sure that you analyze your situation and find the best debt payoff solutions to match your situation.