Dealing w/ CA Hi, this is my first post as I am in a bit of a bind here and am trying to read up as I deal w/ a CA. I have several items that have gone to collections and this one with Sun Rise is a debt of $11K owed to BoA. I called BoA and they said I can only deal w/ the CA. The debt was sold to them in October. I was out of the country and have not responded to any notices (very bad) and Sun Rise managed to track me to my new cell. I am 1/2 way through the FAQ and wanted to post on here first because they have offered to settle for 26%. I have managed to get them to change the wording to "settled in full." I still do not have a UDF from them and plan on sending them a validation letter on Monday. Today the CA threatened that they will advise their client (BoA) to move forward with a judgement, which I am trying to avoid. How would you recommend that I proceed? Thank you in advance (now I am going back to digesting the FAQ).
I would only settle with a CA for a deletion, not a "change of wording". A paid collection is no different than an unpaid one except when you are trying to buy a home. You need to send the validation letter and see what information they have and what they furnish you with. After that you can plot a better course of action. You have to remember that they will say a lot of things (threaten you) but what they say and what they do are 2 different things. Send the letter and see what they come back with.
Sounds like BOA sold this debt. That account tradeline should report as zero. I would request validation from the debt purchaser and dispute their tradeline with the credit reporting agencies.
26% of what you owed is a pretty reasonable number...you can always dispute the heck out of the account or have someone to do it once the account is paid.
Thank you both for the advice. I went ahead and sent DVL #1. They completely stopped calling and I have not heard back. I also purchased a PO Box to keep track of all my mailings with creditors. I prepared DVL #2 and included my new change of address which I will mail out 12/31/2009 (30 days after DVL #1). My next step is to look into the trade line as suggested. Any other tips? Thank you in advance!
One thing to keep in mind if you settle for less than the amount owed is that you will probably receive a 1099-C and will have to pay income tax on the amount that was forgiven (the amount you did not pay). Some people get so worried about reporting that they fail to plan for the several thousand dollars you will possibly owe in taxes.
called them? Is calling them ever, in any situation, a good move? I can't see it, but I sure don't know it all.
Okay, so I would like to ask for advice again. I received a letter in response to my request for debt validation. Attached to the letter I received copies of my previous statements. What would you recommend as the next step?
