hi, first of all i'd like to thank all of you for providing such an invaluable resource of information... it's been really helpful. my creditor (or the ca) is willing to settle my debt for 50% of the balance. i have a few questions on how to proceed. first, should i just agree and pay the balance?... or... 1. my credit limit was 6.5K my current balance is over 8K, how is it possible that i have acquired over 1.5K in fees, etc. is there anything that can be done to argue this? 2. should i make an offer to settle for 60% or less? 3. should i request any statements mailed to me that show how the final balance was reached? 4. how would settling the account affect my credit? can i ask to have this account deleted/removed from all cra's (assuming i have settled the debt)? 5. is it reasonable to ask for two payments rather than a full sum at once? i would like to call the ca attorney today and hopefully put this mess behind me. thanks for your help.
Everything is arguable. And yes, since you have your doubts about the fees, you should first ask for validation and how they came up with this amount. If you settle, the older the debt, the more likely you can settle it for less - but if it were me, I wouldn't jump the gun - I would ask for validation. How old is this debt? You can certainly ask...but no guarantees. Again, everything is negotiable. If you want to do two payments they are liable to want your checking account info to auto debit. DON'T DO IT! Are they threatening to sue you or anything? One final note - if you opt to settle this just so you can move on - make sure and get all the terms in writing (especially if you settle for less) - otherwise, some other junk debt buyer, somewhere down the road is liable to come calling to collect the balance you did not pay.
the debt is about 6 months old (maybe a little more) the lawyer from the CA did, of course, threatened to file a law suit, but then send the letter offering to settle. i would like to do the following, but also would like to make sure i am not shooting myself in the foot. - i will call the lawyer at CA and ask them for the statements showing how the final balance was reached (should i hint at the fact that i'm interested in settling at this point?) ... assuming the statements show that i do owe what i owe - i will make a counter offer (about 60%) and ask them to re-draft the proposed settlement agreement - i will request to make two payment rather than one lump sum - i will request to have this account deleted from all CRA's. my only concern is that they could say "no ... way" and proceed with the law suit. i think it doesn't make sense because of the time and expenses, but i have my doubts. also, when i ask for the statements are they required by law to provide them, before anything else can happen (i.e. the CA filing a lawsuit?) thank you
Well, once you lay the cards out that you *might* have some funds available, don't think they won't sue, but alot of it does depend on the OC and the CA. The time and expense costs, if it were to go to lawsuit, and you lost, could be charged to you. If this debt only defaulted 6 months ago, unfortunately you are in a bad spot. Its really a crapshoot what will happen... As an aside $1500 in fees and interest for 6 months does seem a bit high.
Not necessarily. Just "late fees," "overlimit fees" and "because we can fees" can add up to almost $100/month. On a $6,500 balance, with the account now in the "default pricing" interest of 30% (or more) so add in another $170/mo (and more each month as the balance increases due to past unpaid interest and fees) so you could get something like $250 to $300 added each month from the interest and fees. My $.02 would be for the OP to stall or drag out the negotiations while saving the money so you can make one and only one payment that cancel's the debt. If you "make payments" they or the subsequent buyers of the debt will just keep asking for more and more money as the balance continues to increase. It might be tight, but at least in a month or two it will be over, once and for all.
I wouldn't call them and ask anything. You need a paper trail. First, send a letter (certified mail, return receipt requested) and ask them to provide an accounting of how they arrived at the balance, as well as proof that it is your debt. Include the statement that it is inconvenient for you to accept calls at any time and that all future communications should be in writing. Wait until you see what they send before you even hint that you might pay anything. If they call, don't answer the phone.
I think I'm missing something but, didn't the CA agree to accept 50%? Why then are we discussing paying 60%? Seems stupid.
