Hi Everyone- Just to give a brief summary. I currently have 2 cards with Citi which are almost at the 6 month mark. At this time, Citi advised me that they wrote off the debt, sold it to a CA. The CA advised me that they were marely handling the matter on Citi's behalf (I've read that the lender & CA often say contradicting statements). They offered me roughly a 55% off settlement which they can break up into three payments. That definetly sounds like a great deal, especially since I have saved and would be able to pay the settlement price. I have read numerous posts stating that once you pay you loose all barganing power. I've also found several approaches individuals have taken to remove negative reporting on paid collections, such as: PsychDoc's post "t-thanks-all-wish-me-luck-18103.html?postid=125035#post125081" It's pretty clear that I need to demand a written settlement letter which clearly states that the account is paid in full, or similar language which will stop anyone from collecting the difference in the future. Are there any steps I can take in demanding that all or some of the negative reporting be removed upon settlement? If anyone has had successful experiences with their settlements, please do share. I appreciate everyone's time and suggestions...
I can't help you with getting the negative removed. You can always try asking for a pay-for-delete, but from what I understand, those are pretty rarely accepted. As for making sure nobody collects on the remaining 45%, you don't need any complex or specific wording. The letter from the CA should say something to the effect of "We're willing to settle this matter for $xxxx.xx, with $xxx paid by xx/xx/xx, $xxx paid by xx/xx/xx, and $xxx paid by xx/xx/xx." Keep a copy of this letter, and keep documentation of how you pay (bank statements, canceled checks, money order receipts, or what have you). If you want to be extra-extra-safe, you could always send your payments via certified mail, but that's up to you -- I don't really think it's necessary. Once you satisfy a settlement, that's it -- game over. The matter is closed. They forfeit any claim to the "remaining" balance. There's a legal theory called "accord & satisfaction" which basically states that fulfilling a mutually-agreed-upon settlement satisfies whatever claims the settlement was originally based on. If another CA comes after you for this debt, send them a C&D and hope they sue you, then go to court and raise this as your defense. (The full concept of A&S is a little broader than just what I've described above, but it's really beyond the scope of this forum and/or your situation.)
Thank you for clarifing what the letter from the CA needs to look like. It seems that's exactly what i need help with, a pay-for-delete of some sort. If anyone has had any attemps, successful or not, please do share some thoughts. Also, when settling accounts, am I in a position to bargain to keeep my account with the lender open? I have read various topics, where certain indivuals were allowed to keep their accounts afterwards. Thanks!
