Hi, I am new to this but don't know where to go for info. I have 2 credit cards that were charged off and now the company that bought them have retained an attorney to collect the debt. I have talked them down to a 60 percent of the original settlement amount...is this a good deal, I had one other account that I was able to settle for 75 percent? Any advice would be appreciated.
How old is this debt? has the CA reported this as derogatory CO on your credit reports yet? also has the original creditor placed a ding on your report? -Peace, Dave
The last payments I made were in February 1997, maybe later on one. Basically I have been ignoring letters that I have been receiving for a long time. I really need to run a current credit report as the last time I checked in 2000 they were only listed by the original creditor. Thanks so much for responding...FJH
Ok then since they are from 1997 you need to pull all 3 reports Equifax, TransUnion, and Experian. You can order them all online or over the phone, and if you live in certain states, or have been denied credit recently, you can get them all for free. You can also get a free trial for some of the services affiliated with the CRA's (like www.creditexpert.com) and get your report from there for free. Just remember to cancel the memberships before the 30 day trial...search this board, there is one for Equifax also that has a 30 day free trial. TU report can be seen for free from www.worthknowing.com, but the score and even info from the report is questionable. But a place to start anyway. Once you see how the account is being reported, and who is reporting it to the CRA's you will be better equipped to deal with the question of "should you pay the 60% settlement with the CA?". Also look and see how the 75% one you worked out before is being reported...chances are that AT BEST it is being reported by only one agency and as a "paid charge off" but keep in mind, a "paid charge off" is NOT much better than an "unpaid charge off" and simply paying the 60% (or 75%) may not have helped you in any way...in fact may have hurt you because the CRA will now report the account for 7 years from the date you paid, not the 1997 date. Let us know how the accounts are being reported, bottom line is that there is NO RUSH to pay the 60% until you have further information about the account since this has been going on since 1997....no rush for C&D letters or Estopple letters since you have already been discussing things with the CA. I would not discuss anything else with them over the phone and even then not until you have the info from your reports. -Peace, Dave
Dave, thanks so much...I will order the Credit Reports immediately. I know that I made a big mistake with the 75% one in that I didn't get any promises in writing so it was really a bad idea. Also..the lady I spoke today said that they would take me to court if something wasn't done soon on my account. I asked her to send me a bill or something for a payment (as I don't immediately have the money to settle)...did I make a big dumb mistake by doing that...does this show that I have intent to pay from this day forward? Thanks, fjh
LOL They always threaten to sue...it usually comes just before them hanging up on you abruptly. That's why Breeze has that police whistle No, no dumb mistakes. You will be fine. Get your reports...I always advocate the hard copies snail mailed from the CRA, but get them whichever way you can to see how your life has been databased. Chances are you will find things about yourself even you didn't know Once you get your reports post a note about how, and who is reporting the CO's (you can work on the one that you negotiated for the 75% also, so don't fret about that). In the meantime tell the CA (if they call you) that you are waiting on (or have received, if its been a while) their information and will read it over with your atty and you will get back to them by mail. They should not call you to harass you because they think you are negotiating for payment, but they will start to call after a while. Just make sure you do not deal with them over the phone again...all correspondence from now on should be through US mail and in writing. -Peace, Dave
