VS and BofA are no longer handling your account. The collection agency is, and you have to deal with them.

What you need to do if you are going to pay these off is get the payoff or agreement you come up with with these people in WRITING before you send them a check. Most people don’t and just pay it over the phone and then they have no proof of what was agreed to.When a creditor sells an account to a collection agency, the collection agency is entitled to whatever payment you may make.
Paying back a defaulted/charged-off credit card will not restore your credit rating..Your credit report will be updated to a "Paid Charge-Off," which, while slightly better, is still a seriously derogatory item. Per the Fair Credit Reporting Act, a charge-off, whether paid, settled for less or not paid at all, will remain on a consumer’s credit reports for up to 7 years….so you’ll be stuck with damaged credit regardless of what you do.

Many collection agencies that deal with defaulted credit card debt are highly aggressive and if you renew contact with them you may provoke really aggressive collection activity against yourself….be careful. If any of the agencies that have your debt are on the list of worst collection agencies below, you may want to reconsider renewing contact with them:

http://www.budhibbs.com/am_worst_collection.htm

If you’re going to pay, keep all communications in writing….stay off the phone. There’s a free fax service at: http://faxzero.com/
Offer 20% and go from there. Fax them a letter like:

I am willing to settle this matter for 20% of the original amount.Your firm must send me a signed agreement on your company’s letterhead that you will accept this amount as "payment in full" and that this issue will be settled. Upon receipt of this agreement, I will mail you a money order for this amount.The collection agencies now own the debt and that is who you have to deal with. Most collection agencies have a long list of complaints — some legit, some not. After all they are hunting down folks who defaulted on debt.

When dealing with ANY collection agency, get it in writting. Forget about phone conversations. Get the settlement agreement in writing before you pay. Keep that agreement and your payment proof forever. Do not give collectors direct access to your bank account.

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Tags | credit card debt