Never negotiated with a collection agency but if that is the case then it is just a simple expected value question.

The item will disappear from the credit report sometime in 2012.

So is two years worth it?

Depends on the amount of money involved, MrsRebel's need for credit in the next two years, and if she feels any moral obligation to pay?

If you are not going to get the item removed though I see no reason to pay a stat barred debt.

In fact if my understanding is correct it will actually hurt you since the date of last activity will reset and now the item will remain on the credit report until 2016. I'm not 100% sure of this but assuming my interpretation is correct this is a major design flaw in the current credit system that basically makes it retarded to pay any debt that is over 2-3 years old.

If you pay the whole amount they might consider removing the item from your credit file, anything less I can't see it being removed.

The debt is almost certainly stat barred. Pay it for moral reasons but legally they can't do anything to collect the debt unless they trick you into acknowledging it. This allows you a lot of power in negotiating. I would demand that they delete it from my credit report as a condition of paying it and I wouldn't offer very much. They can ask for 75% but they know that if you say no they get 0%. Mention that you know the debt is stat barred -- that usually throws them into a fit.

What was the original debt in 2006?

Hello,

I recieved a call from ACR about a cash money debt I owe them. It's from 2006 and they just contacted me in December 2009. They stated it cash money brought this account to them in 2008 but they have't contacted me until December 2009. So the whole time they have been (ACR) charging me interest on this debt I owe. When I told them I can settle with them for X amount of dollars, they told me that cash money doesn't setlle for less than 75%...does anyone know if this is true?