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If this is to negotiate a pay off on a debt purchased by a collection agency, then here is the standard prices they pay for bad debts. The amount that companies pay for bad debt depends on the type of account and its age. In general Debts that have recently been charged off: 6 to 7 cents on the dollar. Accounts that are slightly older and on which a collection agency or two has already taken a whack: 1.5 cents to 2 cents on the dollar. Years-old, out-of-statute debts: A penny or less. In addition, debt collectors are prevented from collecting any amount unless the amount is expressly authorized by the agreement creating the debt or is permitted by law. Amount includes not only the debt, but also any incidental charges, such as collection [53 Fed. Reg. 50108] charges, interest, service charges, late fees, and bad check handling charges. Hope this helps answer your question.

by Sgt Big Red

4 weeks ago

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