does collection agencies have to accept 5.00 a mounth

I have never heard of collection agency accepting a small amount, but it will depend on how much you owe and how much they are willing to settle for.

How much is the total debt, collection agency is collecting for?

I think that years ago that is how is was. Once upon a time, in my lifetime, as long as you made some attempt to pay towards a debt, that was acceptable. I am afraid, that those days are gone now. It seems they disappeared around the same time as the "sue someone for anything" days began.

Generally collection agencies work on a 1/3 to 1/2 contingency. Meaning, if you send them $5.00, they keep 1/3 (1.67) and send 2/3 (3.33) to the creditor that placed it for collection. Albeit, the creditor is supposed to give you credit for the full $5.00.

But taking such small amounts just becomes a lot of paperwork. You also need to keep in mind, that if they are still charging interest, than $5.00 probably doesn't even cover the interest for the month.

Say your balance is $5000, then by sending $5/month it will take 83.3 years to pay it back; they do not want to drag it out that long.

Now this is not a CA but I am sending PDOK $10 a month and they are cashing the money order, I think my balance with them in $60 so $10 a month will be done in 6 months unless I win the lottery, guess I have to play to win

It is not the practice of collection agencies to accept payment plans unless they are on their terms. Keep sending in what you can but be aware of futher calls.

I think that if you send them at least something, they will realize that you are trying to pay off your debt.

I think the key word here is communication, like we don't like when people don't communicate with us, companies in general don't like non-communication either

Communication doesn't matter with collection agencies unless you are following their terms. Communication was supposed to happen before the information was sent to a collection agency and that is how they see it.

So communication with them doesn't matter but if we get hauled into court they will use it as a defense, am I correct in assuming this?

Let me rephrase, I didn't mean to be so broad in the generalization. Apologies. I meant to imply it twards verbal communication when you can't pay what they want.

If you aren't following their terms however they could honestly care less about you picking up the phone when they call to tell them that you can't pay or you can only pay 10-50 bucks a month.

It's much easier to just mail it in along with a letter. Written communication is a lot more helpful because there is always a record of it. A favorite saying that collectios use, if it isn't documented it didn't happen.

Okay that makes sense that is what I do with PDOK I send them a check each month with a letter stating what I am doing and how I am doing it

Every conversation that you have with a collector is documented. The collection agencys have structured ways they want their work collected. Strong for the first 15 days, meaning they have to call all phone numbers twice a day for the first 15 days. If you call back it is documented. If I pull an old account for someone with financial problems, i won't even call them. I feel like they will call me when and if their situation gets better. If they don't I try to offer a small payment plan until income tax(payout).
You may not think it works but communication works

im only paying 5.00 a mounth to everyone i owe and focusing on the small balances and paying them more.. when it that payday loan or collection agencys turn then ill pay more..

When you pay off a CA in full for a chargeoff, how long should it take for them to report it to the original creditor? Also, usually how long before the status changes on your CR??

I always correspond in writing after a phone call to a CA. I always use certfied mail with return receipt requested to make sure I have proof that they received a copy of my letter. I make copies of the letter for my records as well.

Things can be reported from 1 day to 90 days sometimes longer after accounts have been paid in full. Every company is different so you alway need to ask.

My company generates a tape file at the end of the month, showing all our account statuses and balances. Then our software vendor pulls the tape, and sends it electronically to the bureaus about the 15th of the next month.

So if you paid your account 11/1, we would make the report on 11/30 and it would be sent to the bureaus about 12/15. From there it probably takes the bureaus a few days to process our report, so probably about 12/20 or so. Basically, turnaround time = 45 days.

When you pay somehting off you shold always ask when you can get your zero balance letter. Most companies do not automatically generate these letters automatically but they are so important to have