Who is usually easier to work with when it comes to settling a debt for less than what is actually owed? I've been pondering sending out some letters to the CAs stating that I will only work with the OC, but I'm not sure if that is the best move considering I am going to be trying to settle these debts for a percentage of the balance. They show on my CR as "charged off as a bad debt"- as reported by the OC. Nothing is being reported by the CAs that have contacted me. So that makes me think that the accounts may still be with the in-house CAs. These accts have been delinquent for about a year or more. Thoughts on this? And as accounts get transferred from CA to CA, is each new CA permitted to pull my CR? Thanks! Jenna
It depends. First look at the legitimacy of the debt before you consider negotiating. It could depend who owns the account. Ultimately, they decide. If a CA bought it, then you might be able to settle with them, for less than full, since they probably purchased it cheaply. You would be in a stronger position to negotiate if it is past SOL. It could depend on what type of account this is. If it is medical billing, you might be able to settle with the hospital, for example, if you were billed at their full rates above what they charge insured patients. In addition, in that area, there have been some class action suits and settlements. If you were insured, however, make sure the amount is actually correct. Make sure all claims were submitted timely, were adjusted based on any provider/insurer agreements, and were paid. And if the provider is "in network" and the claim was not submitted timely, there might be no amount due from the patient. Yes, each new CA has PP to pull your reports.
This would be unsecured CC debt. Not out of SOL. Not even close. It just hit 180 days a few months ago. This is a joint acct. w/ my hubby. I figure the only real leverage I have is that they want their $$$$. We would really like to settle for less and possibly have the TL on our CR show a little more favorably. I don't know if this is possible or not. It has been sent to a CA, but the CA is not reporting on our CR. Just the OC is reporting on the CR, and it's showing as "charged off as bad debt". I don't think it's been actually bought by a CA, just transferred to an inhouse CA. Not sure. Jenna
You have to decide what you want. If you want to settle for less than full, that is probably easier to negotiate (or you may just get an offer) if it has been sold, is past SOL, and is nearing the 7 year reporting period. That is not the case here. This account is new, apparently still owned by the OC, but charged off. You might be best off just paying the OC, assuming you can afford to, or possibly establishing a payment plan with them, looking to possibly reestablish an account with them in the future. If you are in financial straights now, but are digging yourself out, where do you want to be 1 to 2 years from now, and how will you get there? As far as settling for less than full, negotiating that might depend on whether it appears you are able to pay them in full, or are about to go bankrupt anyway. Either way, you are unlikely to have much negotiating leverage over how they report.
