Richard S. wrote:Just a guess here but they probably have poor collection rate on bills the insurance companies don't pay so they bill and inflated $500 in the hopes your insurance will cover it. This probably makes up a small percentage of the payments they receive and is where most of their profit comes from. From there they offer you discounted rate in the hopes you pay it off because of the "special offer". Basically they are using same tactics debt collectors use offering substantial discount off the principal.
Often referred to as the Reciprocity Rule. Works just like Richard said; They offer, you say no, they agree with you and give in a little.
Human nature lends one to give a little too ... reciprocate. It might go through several cycles but that's the response they look for. Charity telemarketers use it all the time. Talk to one the next call you get and you'll be sure to pick right up on the tactic.