I want to settle a small debt (<$150) that is killing my credit score. (TU 647, Experian 733) It is the only negative item and I am applying for a mortgage soon. I disputed with the CRAs and they came back in 10 days with verification. I sent a validation letter to the CA. I want to fight it but I am also prudent. Wasting time fighting this might cost me mortgage and a lot of money with higher interest rate. I want to settle this debt in exchange for complete removal of the tradeline from my credit reports. This site doesn't have a sample letter like this. Can anyone give me one, that is enforceable in a court if I later have to fight to get the deletion? I am going to send this letter to them, get it back signed and then send payment. Thanks.
OK... So, I sent a letter out like this after I requested validation and they responded with some computer print-outs ...Like you, I just wanted this to be over, so I sent out a letter simply stating that they had failed to present me with documentation for the loan, had violated the FCRA and FDCPA by etc, etc- you get the point... I let them know I had them on many counts THEN I started in on the settlement... some derivitive of the following: "although I have every right to file suit on these violations and you have not properly validated the debt as required by law, I may be able to save us both further hassles by offering a settlement on this 'unvalidated debt'"-- I think this is important since you want to make it clear that you do not think this is a REAL debt. Tell them you will pay the debt in full (or what ever percentage, 30% in my case) and in return they must remove the item from your credit report. Also, require that they send you a letter after receipt of payment confirming that the account was settled and that they would delete the entry within 30 days. I told them to sign and return the settlement letter within 10 days of receipt and I would send them a check with a restrictive endorsement containing these terms. Include these lines, or some derivitive of them, in your letter to cover yourself legally... "Be advised that I have not agreed yet that this debt is mine and I reserve the right to demand full validation of this debt. through legal channels if necessary, should we not come to mutally agreeable terms." "This offer is not a renewed promise to pay nor does it constitute any agreement unless you sign and return it." "You agree the terms herein are confidential and you have the authority to make such decisions. " If you say that you are going to send a restrictive endorsement- do it... this way you cover yourself both with the agreement letter AND with the restrictive endorsement. Hope this helps, GOOD LUCK!!
Here is what I am going to send. Is it good enough? Dear Collection Manager: It has come to my attention through the credit bureaus that you claim I owe a debt to your agency. I can save us both some effort & time by "Settling the debt out". Below is my offer. It is not a renewed promise to pay nor does it constitute any agreement unless you sign and return it. Be advised, I have not agreed yet that this debt is mine and have the option to seek further proof from your agency of this debt. I am sure you are aware of my right to dispute this debt and request full proof of the obligation. Paying this unverified debt to you means little to me if we cannot mutually agree that you will report the debt as mentioned below. I have concurred through the bureaus that you have the absolute right to report this debt as you see fit or not report it at all. My goal is to arrange a term acceptable to both us since this debt is questionable. I will pay your company the amount of $xxx as payment in full for the full satisfaction of this account. Upon receipt of the above payment, your company agrees to permanently DELETE the entire tradeline on my credit reports. You will do so within 48 hours of receipt of payment by faxing UDF to the three credit bureaus. If you concur with these terms please acknowledge with your signature and return it to me, within 10 days of receipt of this letter. You agree the terms herein are confidential and you have the authority to make such decisions. No payment will be made without written confirmation. Upon receipt of this signed acknowledgment, I will immediately mail you funds priority mail. This is not a renewed promise to pay but rather a restricted offer only. If no terms can be met, no new arrangements will be made and the offer will be void. Name of Creditor: _________________________________________ Name of Authorized Company Officer: ___________________________________ Signature of company officer : ____________________________________ Date: __________________________ Sincerely,
1*a* I am not agreeing that the debt is mine 2*a*from all reports at all credit bureaus 3*a*to the 3 major credit bureaus-Innovis- and all other CRAs
I think this is fine... but I will say that is somewhat similar to other sample letters on the internet and they probably get quite a few of these... you may want to put your own personal twist to it... and i still recommend restrictive endorsement, just to cover yourself two fold (some states, such as California require that you give the person you are sending a restrictive endorsement to prior notice that you will be doing this - that is why I include it in the agreement letter). Good Luck... they can only say yes or no... you can't lose anything by trying.
The CA is in New York. I heard that restrictive endorsment doesn't work in that state. The CA can take the check with the restrictive endorsment written on it and effectively invalidate what is written and deposit the check.
