(California )

Can a collection agency refuse to settle a bill? Or lower ur interest?

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May 04, 2012

Yes, a collection agency can refuse to settle a debt or to lower the interest rate on a debt. It is not obligated to make any concessions to the consumer it is trying to collect money from. At the same time, sometimes a collector will refuse to do something as part of its bargaining strategy. For example, if you offered to settle a debt for $X and it believes you can afford to pay more, then the collector will turn down your offer with the expectation that you will respond with a better offer.

Ultimately, if you cannot work out a way to pay what you owe, you put yourself at risk of being sued for the money, especially if your debt is relatively large. Therefore, it's in your best interest to try to negotiate a payment plan or a settlement you can afford. But in the end, a collector does not have to agree to either. However, most collectors would prefer to collect something on a debt rather than nothing, so if it likes your offer, it is apt to accept it. Good luck.

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