old newbie needs advice

Discussion in 'Credit Talk' started by enigmaingr, Mar 24, 2004.

  1. enigmaingr

    enigmaingr Member

    I've been lurking around CN for almost 2 years now in my quest for financial responsibility. During that time, I've only posted a few times because reading hte other posts has provided me with nearly everything I needed to know. While I have yet to experience the type of results some others on the board have, I am quite pleased with the progress I have made on my credit.

    Here is my new situation: I made a settlement agreement with a CA about a year ago. I paid the settlement with a cashier's check (see, I really did pay attention to the advice). I have both a copy of the check and the settlement letter that the CA sent me however, I never did receive a letter from the CA verifying receipt of the settlement. Now, I checked my credit reports and that debt is listed as an active collection account. The funny thing is, the CA didn't start listing the account as past due until about 7 months ago. This CA has had the account for 2 years. What should I do from here? My thinking is that I should send both the CA and CRAs copies of both the check and settlement letter and ask for account to be corrected. Is this correct?
     
  2. lbrown59

    lbrown59 Well-Known Member

    Did the settlement letter state the CA would delete the trade line in exchange for payment?
    I don't know at this point as I'm not informed enough about the settlement to say.
     
  3. enigmaingr

    enigmaingr Member

    Thank you for responding! No, the letter did not say that they would delete the tradeline. Here is the exact wording of the letter:

    "We have been authorized by the above referenced client to accept ($ amount) as a lump sum of the above amount so long as payment is received within 30 days"

    At this point, I don't care about how it is reported so long as it is considered a done deal.
     
  4. ontrack

    ontrack Well-Known Member

    So they posted a collection TL on your report after they had received your complete payment in response to their settlement offer. Does the TL indicate an outstanding balance, or $0 consistent with a payed off account?
     
  5. enigmaingr

    enigmaingr Member

    The TL now reports a balance that is roughly the amount I originally owed minus the settlement amount I paid. The funny this is, they did not start reporting until about 7 months ago even though I paid the settlement a year ago.
     
  6. jlynn

    jlynn Well-Known Member

    Re: Re: old newbie needs advice

    I don't see where they acknowledged this as FULL PAYMENT of the account...it looks like a receipt. Was there more to the settlement letter?
     
  7. enigmaingr

    enigmaingr Member

    Re: Re: old newbie needs advice

    No, you're right, it wasn't for full payment. My understanding though was that they were taking the amount specified in the letter in lieu of full payment and report the debt as such, i.e. "paid, settled for less than amount owed", which I would be fine with.
     

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