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I've been sent to collections a couple of times. (I swear it's not my fault - once was an evil landlord who tried to charge me rent for the month after I moved out and the second was voicestream who charged me for calls after my phone was stolen. I thought we were still negotiating, they sent me to collections.)
Both times they let me settle my case for less than 2/3rds of the original amount owed. You just call them up and ask them what the minimum amount is to close that file, they throw out a number, you can bargain with them. I was really surprised how agreeable they are.
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