Feedback on My Settlement Letter

Discussion in 'Credit Talk' started by firsthomr, Aug 6, 2003.

  1. firsthomr

    firsthomr Active Member

    Gateway Computers

    Dear Sir/or Madam:

    I would like to settle my account # xxxx. I was making payments on the account when I was unexpectedly laid off from my job. I was out of work for almost three months which really caused my family hardship. Since the job market was really tight, I accepted a commission only sales position. Taking that position was not a very wise financial move for me. Additionally I was going through a custody battle which I had to pay astronimical legal fees. I struggled to keep the electric bill paid and food on the table for my family. I became so behind in my bills that I was not able to keep with my payments to you.
    I would like to settle the account and request that you remove all late payments and charge off status in the trade line of all three of the major credit reports. I am trying to turn my life around for the better. I have been making timely payments to all my creditors however the negative information you have reported to the credit bureaus is hindering my requests for obtaining a prime mortgage. Please respond to me in writing regarding my request.
  2. Hedwig

    Hedwig Well-Known Member

    I think it's way too much information.

    I think first you go after them to prove the amount they are claiming you owe.

    If you get adequate proof, just write a simple letter asking what they would accept to settle this account.

    Or, you could start with a letter stating that you see this account on your credit report. You're not sure it's yours, but you might be willing to settle for a lesser amount just to get rid of it if they'd delete it from your report.
  3. firsthomr

    firsthomr Active Member

    Thanks, Hedwig. I am assuming you are a Harry Potter fan because of your screen name.
  4. firsthomr

    firsthomr Active Member

    The big three have verified my gateway account. I made two arrangements with the collection agency. I am trying to negotiate for deletion of chargeoff status for remaining $1000 owed.
  5. Hedwig

    Hedwig Well-Known Member

    That's where it came from. I'm actually more of an owl collector. I like Harry Potter but don't know if I could say I'm really a fan because I haven't read all the books. But when I have time to read, I do enjoy them. It was just neat to have a famous name for an owl.

    Also, when I was traveling in California I saw a St Hedwig's Catholic Church. Upon doing some research, it appears that there may be two Saints Hedwig.

    But yes, I adopted the name because it was the owl in Harry Potter.
  6. julesh

    julesh Well-Known Member

    I agree. I would leave out the personal info. The only thing they need to know is that you want to settle the acct. in exchange for a deletion of the TL.

    Here's a letter that I adapted from some sample letters:

    RE: Account # xxxxxxxx

    Dear Collection Manager:

    Upon recent review of my ______ credit report, it has come to my attention that you claim I owe a debt
    to your agency. As of todayâ??s date, this debt has not been verified as legitimate to me through my mini Miranda right. However, since the amount that you claim I owe is such a small amount, I would like to save us both some time & effort by settling the debt with your agency.

    Please do not construe this settlement offer as an acknowledgment of my liability for this debt, and I
    retain the right, if I choose, to seek proof that this debt belongs to me. My goal is to seek a settlement
    arrangement that is acceptable to both of us since this debt is unverified and questionable.

    I realize that it is your job to collect unpaid debts, but an â??unpaid collectionâ? vs. a â??paid collectionâ? means little to me as both are unfavorable listings on my credit report. Paying this unverified debt would be of no advantage to me, if the listing remains on my credit report. With that said, I am aware that you have the right to report this debt to the credit reporting agencies, or not to report it all. Please do not waste my time by telling me that you are unable to remove this unfavorable listing, or I will be forced to withdraw my settlement offer and request full verification of this debt.

    I will pay your agency $xx, as payment in full, for the satisfaction of this debt that you allege I owe in
    exchange for a full deletion of all references regarding this account from my credit profile with all of the national credit reporting agencies.

    If you agree with these terms, please acknowledge with your signature and return it to me. Upon receipt
    of this signed agreement, I will immediately mail you a money order for the amount stated above via
    priority mail. No payment will be made without written confirmation.

    You agree that the terms herein are confidential and that you have the authority to make such a decision.
    If no terms can be met, no new arrangements will be made and this offer will be null and void.

    Name of Agency:

    Printed name of company officer:

    Signature of company officer:

    <your name>

    IMO, you should be as professional as possible and let them know that you know your rights under federal.
  7. firsthomr

    firsthomr Active Member

    Julesh- Thanks for the sample settlement letter. I decided to use the letter. I have a quick question though. Should I send it certified mail? From reading the board I sense that you should send validation letters certified mail. Should I also send the Settlement letter certified mail too?
  8. tryinhard

    tryinhard Well-Known Member

    I see this discussion is from Aug. but I am curious to know the outcome of this situation, please let me know. Thanks

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