Negotiating with third party debt collectors is very similar to negotiating with the original creditor. You will continue to make offers in flat dollar amounts, not percentages. If a creditor asks you if you have already made settlements, you can disclose this information but only if it is to your advantage. A good example would be if you have a 35% settlement and wanted to get them to match the offer. They may ask for a copy of the settlement offer letter, which it is ok to provide them.
Sometimes these 3rd parties will insist they can only settle if you provide lots of financial information like your employer, salary, savings, etc. Do not comply with these demands unless you feel they are truly being honest. These are often ploys to find out how much money they can get from you.
If you reach an agreement on a settlement and the representative asks for a “good faith payment” before they can issue the settlement letter, this is most likely a trick. Always remember that no letter means no deal. Tell them you are borrowing the funds from a friend or family member and that they will not release the funds to you until you have a settlement letter to show them.
