With your lump sum in hand, contact the collection agency to negotiate a payment. Collection agencies will sometimes accept a reduced amount as payment in full. Making a first offer of about 33% of the amount owed is a good place to start. (A reasonable expectation is to settle for 60% of the amount owed.)
How to contact collection agencies
Telephone and mail are both acceptable ways to contact collection agencies. Using either method simply state that you want to make an offer for settlement.
Tips for communicating with collection agencies:
The collection agency may accept the offer, make a counteroffer, or reject the offer. If they accept the offer, request written documentation (mailed, faxed or emailed) that the debt will be settled in full once the agreed upon payment has been made. Don’t send in payment until you have this information in writing. If they make a counteroffer, make sure you can afford that amount.
You have three options if they are unwilling to negotiate, or you cannot afford their counteroffer: Hang-up, call back another time. Move on to another collection account and try negotiations with them. Offer to pay the account in full and get a receipt.