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Before you send the collection agent one thin dime, you must get their statement about not affecting your credit report, along with any other terms of the settlement in writing. If you don't, and this is a typical collection agency, you will almost inevitably end up with them saying you owe more money, and hitting your credit report. If they are so friendly, then they should have no problem sending that letter. Do not send them anything until that letter is in your hand, no matter how much they promise they have mailed it. This letter should contain all the terms you discussed on the phone.

If you don't get this letter, you could run into big problems later.

Also, do not do any payments over the phone. Mail your payment in the form of a money order. This is so the collection agency does not get a hold of your account number, and pull further "scheduled payments" out without your consent.

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