I recently got a call from FMS creditors regarding a $2,700 debt on a Providian Credit Card that I owe. I live in the state of Florida and the date of last activity is 4-1998 so the SOL has not run out. When the rep talked to me I simply asked that she send me a letter verifying the debt and took her contact information. She offered to settle for $1,400 but ended the conversation. Now I have received the following letter. Per your request, this letter shall serve as notification that FMS, INc, acting on behalf of the client(s) listed above, has agreed to your proposal that the above-mentioned accounts (s) be settled in full. We will accept $678.36 as settlement in full on these account(s). THE SETTLEMENT AMOUNT OF $678.36 MUST BE RECEIVED IN OUR OFFICE BEFORE 2/21/00. Should this amount not be received by the date specified, this offer will be null and void and the balance of $2,713.43 will be due and payable in full. Should you have any further questions, please call..... _________________________ First of all, I just got the letter today and it's 2/21. Second, I did NOT propose anything!! PLEASE NOTE BEFORE READING MY QUESTIONS, I need to pay this debt off and try to get it removed as soon as possible because I am looking for a job. So the whole verifying the debt thing is not going to work here. I have to try to settle and get this negative removed. Anyway, the debt has come back as verifiable previously. Here are my questions: 1. The offer to settle is for a good amount but I am wondering since I live in Florida if they can come after me for the additional amount. I is not however for PAID IN FULL but for Settled in Full which doesn't help me any. 2. Shouldn't I be negotiating this debt directly with Providian. Has anyone had any dealings with them regarding settling the debt. 3. I want to make sure that they put PAID IN FULL on the account NOT Settled in Full and remove all derogs or delete the account. Can the collection agency do this or do I have to write directly to Providian. Appreciate any help.
RE: Help!: Settlement Proposa As far as I know any potential employer needs to ask your permission before checking your credit report. That's never happened to me but I'm sure for some jobs it's routine. Maybe you can make up an excuse for them at that point. I think the kind of offer they sent you normally looks something like "settled for less than amount owed" or something like that on your credit report. So "settled in full" might not be the worst. If you are intent on negotiating this off quickly or getting to look like paid in full then you may be stuck with paying the whole balance. But yes I would try any negotiations directly with Providian and not even respond to the collection agency.
RE: Help!: Settlement Proposa If you settle the debt, they can not legally come after you for the rest. The offer of settlement is a binding contract, if you tender the proposed consideration. The amount they want to settle the debt is quite low. If you settle, your credit report will reflect settled in full. It is a hell of a lot better than an unpaid charge off, but not paid in full. Note that a paid in full charge of ain't too great, either. You'll also be required to pay taxes on the amount of the debt "forgiven". I would settle, even if they won't remove the delinquency from your credit report.
Thanks for the suggestion. Any Thanks Erik and Me. I thought that you can get them to put Paid in Full and remove any derogs which to me would also mean the charge off status?
What's on your credit report What are you trying to get off our report? The Providian tradeline? Or a tradline from the collection agency? Makes a difference in how you go about it. By the way, a 25% settlement is good. Course you do know that when you settle a debt, expect to pay income taxes on the difference (the other 75%). It's reported as 1099 income and uncle sam will bite you on it. They can't "come after you" after you settle it. They are taking a percent of the debt as settlement in full The only way to get a tradeline off is to negotiate it off (in writing) before you sign, send, or pay anything. They'll say they can't do it but they can legally remove the tradeline if the account is in any way disputed.
RE: Help!: Settlement Proposa That is not exactly correct. A collection agency can accept a settlement and sell the remaining balance to another agency for collection in some cases. Your best bet is to call them and have them send you a modified agreement which reads that you will pay the specified amount in settlement of the debt with the provision the remaining balance will not be sold for further collection action. Also insist on a provision the remove any negative entries on your credit profile with all three agencies. Be very clear with them that as SOL has expired if they want the money, these are the conditions.
looking for a job not too many employers actually check your credit report. it depends on the occupation...they check it for law enforcement jobs, etc. what kind of job are you seeking? I had two settled (not paid in full) charge offs on my credit report for years, and most folks (apartment managers, etc) did not hold it against me, as the obligation had been satisfied.
Once it's paid If there's still derog info on your report after you settle, Prov will enventually clear out their computer of your info. I cleared derogs off b/c the original creditor couldn't verify a year or 2 after I settled the debts. They can't keep all accounts in the computer forever... only so much room. Pay it and keep disputing w/ the cras for any remaining derog. tradeline info... eventually it will come off
Type of Job and SOL HASN'T Exp To answer your question, I am looking for a job in the technology industry and the do MANY times check your credit, particularly, if the job pays more than $75,000. My last boss said they checked hers before she got the job. This is pretty much common practice now a days especially if as part of your job you will have to be issued a corporate card. I personally think it is a HUGE invasion of privacy but company's can do anything now a days. Second, Hal, the SOL hasn't expired and this is the quandry. I just read a post by Moni on 2/17 that says that she has been trying to settle with Providian and they won't even write her back. They sent the sheriff to her house to serve a judgement, so I am afraid that if I go straight to them they will not take anything but the full amount. I am also hearing some conflicting things on this board. Can someone please clarify if I need to deal with Providian directly to get the negatives taken off or the collection agency. My reports list Providian on them NOT the collection agency. Do they have the right to change this info on my report? BTW. Thanks for the quick reponses, you guys are the best!
RE: Type of Job and SOL HASN'T Elizabeth, Sorry, I read your post a little too quickly regarding the SOL. There is some very good information here regarding how to arrange a settlement: http://www.vipcredit.com/howtosettle.htm Take note of the question at the bottom of the page regarding whether the collector can attempt to collect the balance of the debt if settlement is less than for the full amount. The negotiating tactics listed here are very effective. The weakest point is that the SOL has not expired. Get everything in writing, and don't hesitate to "hint" about BKR if they balk at the offer you make. Start with a low offer and try to reach a happy medium you are comfortable with. Don't send them a penney until you have a written agreement you are happy with, use a cashiers check to prevent them from obtaining your checking account information. I have received letters in the past from collections agencies offering a settlement like this and have been successful in getting written agreements that no further attempts to collect would occur, and had the reporting on my profile changed from charge off to "Paid as agreed".
Thanks Hal - One Question Thanks Hal, I will take a look at VIPcredit.com for some strategies. I still am unclear as to whether I need to deal directly with Providian or the collection agency. So I suppose Paid as Agreed and Paid in Full are the same thing. And what percentage of the debt did you settle for? Thanks again!
RE: Thanks Hal - One Question That is going to depend on whether Providian has sold the account to FMS. You may want to call Providian and see if they have a record of the account, if it has been sold then you need to deal with FMS as they own the debt. If FMS is collection under contract for Providian, then deal with Providian as FMS will have to get their approval for any agreement. With the date of last activity you indicated, it is very likely that this account has been sold. Most creditors typically rid themselves of accounts through charge off after 4-6 months of non payment.
So FMS can change the Providia So if FMS owns the debt they can change the record on my credit report, even thought Providian is listed as the creditor on my report???
Not necessarily. you must negotiate removal of r9 or charge off. I have a "settled for less than amount owed" on my discover account. But it is still marked with a collection/r9 stigma. Settled is not good. ONly negotiate for complete removal. Never settle for settled, unless you are trying to buy a home. roni
RE: So FMS can change the Prov I'm curious about this too... Does the collection agency have the power/ability to change the original company's records on the credit report? How about the reverse...if I was to settle with the original company(Providian, etc., can they remove any listings on my credit report that have been posted by the collection agency?
Not necessarily... I have a paid charge off from GMAC from 1995, and they verify it every time...maybe auto loans are different..
