Just curious: My brother got a credit card back in December, maxed it shortly thereafter, and hasn't made a payment since. He now wants to pay it off. But it is in collections. Should he pay all the penalties and interest directly to the card co. or should he go for something cheaper? (either through the collections or the card co.,. itself) Which is the best way it will look on his credit, or will it matter either way?
have him call the collection agency and tell them to send you something in writing stating it's his debt. when it's verified, tell them it will be paid once they remove the item from the credit report. get it all in writing. and do everything by certified mail.
If he "settles" or pays anything less than all that is accrued it will still show as "breaching the agreement" on his credit report. Or, none of this is true. I'm not 100% sure.
If he really wants to pay it in full, you may call the CC company directly and ask them if he can pay them directly instead of going through the collection agency. Those places are BAD NEWS. Sometimes the CC will be happy to get the full amount instead of having the agency take their cut out. Plus they may take that dreaded "sent to collections" off of his credit report.
