Why should I negotiate with Collection Agency, not with my Original Creditor?

Are some of your accounts with Collection Agencies?  If so, you must provide the Collection Agency’s information when listing your creditors with Paydoff.   After you have provided account information for the Collection Agency, Paydoff will ask you for the Original Creditor’s name and account number but that is only for reference and tracking purposes.

When entering in your Collection Agency to Paydoff, you will want to have a collection letter with you.  You will need to provide the Collection Agency name, the reference number, the balance and your monthly payment if you know it.  Paydoff will also ask if you have a received a collection letter in the last 60 days.  This is to identify if a Validation of Debt Letter is needed for this Collection Agency.

Why listing the Collection Agency’s information is important

It is important to list the Collection Agency over the Original Creditor.  You will be working with the Collection Agency when it comes time to negotiate a resolution.  It is common practice that once a debt reaches a certain level of delinquency for the Original Creditor will either hire a Collection Agency to collect on the debt or to sell the account to collection agency.  For the most part, even if the Original Creditor still owns your debt, you will need to work with the Collection Agency when it comes time to negotiate.