letter to collections co.

Discussion in 'Credit Talk' started by j.j., Apr 28, 2001.

  1. j.j.

    j.j. New Member

    when asking for a account deletion during a negotiation....

    how would i word a letter that would allow me to sue them if they did not delete the account from my credit report ?

    any thoughts??
  2. DaveLV

    DaveLV Well-Known Member

    You can sue anyone for anything you want although it could always get thrown out of court if there is no merit to the suit.

    I don't think a collection agency is required to do anything but update the status to paid unless they agree in writing to do otherwise. So you could probably sue them with no special wording in a letter, but I don't think you'd have a chance at winning -- unless they agreed in writing to the deletion and then did not do so.
  3. Linda

    Linda Well-Known Member

    I have a few small collection accounts on my credit reports. (The original creditors are not listed.) Right now the credit bureaus are reinvestigating them. If they come back verified then I was thinking about sending the collection agencies the following letter:


    (Company name)
    (Street address)
    (City, State, Zip)

    Re: (Original creditor's name), account # (xxxx), amount of $(xx.xx)

    Dear Sir or Ma'am,

    This letter is not an acknowledgment that the referenced debt is mine. However, this collection notation that is on file with one or more national credit bureaus is adversely affecting my credit and I would like it removed.

    I am fully aware that potential lenders do not view a paid collection any more favorably than they do an unpaid collection. Therefore I am not inclined to pay this alleged debt unless I can be assured that this derogatory entry will be deleted from my credit reports.

    Please send a letter to me that clearly states your full agreement to, upon receipt of $xx.xx, close out this account as paid in full and that you furthur agree to promptly have any references to this account, including any hard inquiries, completely deleted from the credit bureaus so as to never again show up on any of my credit reports.

    I will submit a U.S. Postal money order within three business days of receiving a letter as described above. This is not a renewed promise to pay but rather a restricted offer only. This restricted offer is valid for 30 days after which time it will be considered withdrawn and void.

    Thank you,

    (Stree address)
    (City, State, Zip)

    If they agree in writing to those terms and they don't delete the item after they get paid then I believe (but don't know for sure) that you can submit their letter and proof of payment to the appropiate credit bureau(s) and they'll delete it based on that information. In any case if they don't do what they agree to then you could probably sue them for breach of contract. Maybe somebody else has some better advice. I'm certainly open to suggestions and comments.
  4. lbrown59

    lbrown59 Well-Known Member

  5. Erica

    Erica Well-Known Member

    Aren't these two paragraphs in conflict with each other? I'm not sure that this will help you.

    If anyone else knows how this will help, please let me know. Thanks
  6. lbrown59

    lbrown59 Well-Known Member

  7. Linda

    Linda Well-Known Member

    How does someone go about doing that?
  8. Erica

    Erica Well-Known Member

    Basically what I'm saying is that you don't acknowledge that the debt is yours, yet you are willing to pay it. I wouldn't pay someone elses debt, ever, and I think that they might look at it in the way that even though you are not saying out loud that the debt is yours, you are paying it and therefore it IS yours.

    Just something to think about.

    The overall letter is good, but if you can eliminate the paying part, you might get better results.

    I haven't tried this, so don't take my word for it.
  9. Linda

    Linda Well-Known Member

    I see what you're saying now. Hmmm. I guess I sound wishy-washy because on the one hand I really don't mind paying these few small acccounts because they're legimate debts and I can finally afford to pay them, yet on the other hand I would like these particular collection accounts off my reports.
  10. Erica

    Erica Well-Known Member


    Maybe you'd be better off stating that in exchange for payment, the entry would be removed from your report. Again, just a suggestion as I haven't tried it.

    Good Luck,
  11. lbrown59

    lbrown59 Well-Known Member

    Just like any other kind of an escrow set up:
  12. Linda

    Linda Well-Known Member

    Ummm... If I knew how to set up "any other kind of escrow" then I suppose I wouldn't have asked how how one goes about doing that. But thanks anyway for the suggestion... I guess.
  13. godaddyo

    godaddyo Well-Known Member

    In my negotiation letters I never admit that the account is mine. I just try to get them to negotiate the removal of debt throught a negotiated payment. In Re: Your name & Account #

    Dear Collection Manager:

    It has come to my attention through the credit bureaus that you claim I owe a debt to your agency. While I have yet to have the debt verified to me as legitimate through my right of the mini Miranda, I can however 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. Note, I have not agreed yet that this debt is mine and have the option to seek further proof from your agency of this debt. It has also come to my attention that your agency regularly purchases debts in the course of doing business.

    Suffice to say, you hold all the rights to report the debt to the credit bureaus as you see fit and you can change that listing at any time as the source reporting the 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.

    While I realize that your purpose is to collect debts as a collection agent, I am also aware of what a paid collection would represent for me, which is not favorable. That being said, 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.

    Please do not quote to me that you are unable to change the listing or I will be forced to cease and desist our communication and request full lengthy verification of the debt.

    My goal is to arrange a term acceptable to both us since this debt is questionable.

    I will pay your company the amount of $xx as payment in full for the full satisfaction of this account. Upon receipt of the above payment, your company has agreed to change the entry on my credit reports to Paid, no lates. You further agree to remove all previous notation of delinquency.

    If you concur with these terms please acknowledge with your signature and return it to me. 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:

    Signature of company officer


    Social security number
    Do not sign your name!

    Do not sign or date letter! (This is necessary to avoid renewing the debt, should the creditor refuse to agree.)
  14. cable666

    cable666 Well-Known Member

    What is a "Mini Miranda"?

    Re: Your letter to a CA....

    What is a "Mini Miranda"? I've never heard of such a thing. Miranda Rights are rights stated to you in a criminal arrest. It has nothing to do with cival law.

    If you want the CA to take you seriously, avoid making up laws that don't exist. CA's are BS masters, and they can smell it just as well as they can dish it out.

    If you had sent that letter to me, I would have thrown it away after the "Mini Miranda" sentence.
  15. bbauer

    bbauer Banned

    tilting at windmills

    Don Quixote went around one dark night "tilting" at windmills until he accidently caught his spear in one of the huge wooden and cloth vanes and it jerked him off his horse, up,up,up, around, and Ka-Blam! When he hit the ground on the other side, he was not in the best shape to say the least.

    Validation letters will turn into Don Quizote's spear, and the collection agency the windmill if you do not use the validation letter correctly.

    The validation letter is nothing more than a means to get them to break the FDCPA and you really don't care how they do it, just so they do it and they are usually quite obliging.

    One does not try to defend one's honor with a validation letter since the collector already knows or is quite certain he knows what the debtor's reputation is worth.

    A validation letter is nothing more than the opening move in a game which might well be likened to chess. It must be an agressive opener such as an immediate move of the King's Pawn to KP4. Opening with one of the knights is not a good opener and will likely lead to disaster.

    A validation letter should only conatin 1 central theme . It should neither admit nor deny the debt. It should always have a go fetch clause and it should always put a reasonable and proveble time limit on the "go-fetch" And it should have a subtle club statement at the end with which you will soundly thrash them in the event they fail to meet the time limit established in the go-fetch. That's it! Nothing more, nothing less. Simple carrot and stick routine with one major exception. In the standard carrot & stick routine, the stupid donkey is supposed to chase the carrot endlessly trying to reach the carrot always just inches from his nose.
    In the process, he pulls the donkey cart. In this particular
    variation, the donkey goes for the carrot and gets whacked on the of the nose with the stick every time he goes for the carrot. And if he refuses to go for the carrot, he gets whacked for that. He's doomed either way.

    The validation letter is nothing more than the carrot. It is not the stick!

    Bill Bauer
  16. lbrown59

    lbrown59 Well-Known Member

    Escrow accounts are common in mortgage deals where funds are set aside in it to pay such things as insurance and taxes on the purchased house.
    They can also be used or included in any agreement or contract to specify how funds are dispersed.
    The advantage to both parties is that :
    1-it assurers you that you don't part with your money unless your terms of the agreement are met & 2-the party that is to receive the funds will get paid when they complete their end of the agreement:

    Linda I didn't mean to leave you hanging with my other post.Please Forgive me on that one:

    Hope this extra info.helps you out,
  17. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    Use Of Miranda

    Youâ??re correct on one point and in error on another, the former and the latter respectively. Because the Mini Miranda is the short statement that should appear on all duns (collection letters to consumers), following the initial validation statement and reads: â?This is an attempt to collect a debt, any information obtained will be used for that purpose.â?

    Yet, godaddyoâ??s use of the (Mini Miranda) term is nonetheless inappropriate. The Mini Miranda has nothing to do (whatsoever) with validation or dispute of debts, and reference to such would be viewed as amateurish by a collections manager.

    That notwithstanding the best course is to first request validation pursuant to 15 USC §1692g, Validation of Debts, which IS NOT limited to the first 30-days of contact as commonly thought. Simple because a consumer doesnâ??t exercise this right within 30-days after the first collection attempt, does not negate itâ??s effect.
  18. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    Use Of Escrows

    Respectfully, I cannot agree with your purported use of escrow in context with negotiating a settlement before one is mutually reached (agreed upon). Foremost because any consideration intended or applied toward a debt could be construed to reset statute, and secondly no (true) escrow can dictate unilateral (one-sided) terms.

    Albeit if you meant to use an escrow device after BOTH sides agree on terms, then such would be appropriate. Getting a collections manager to agree to one is another story altogether, not to insinuate it couldnâ??t be done, but probably so with a good deal of difficulty. For instance; too many logistics and variables inasmuch as what Escrow Officer would take on the responsibility of verifying claims? I certainly donâ??t know of any, although Iâ??m certain one could be found.
  19. LoFico

    LoFico Well-Known Member

    Re: Use Of Escrows

    I thoroughly enjoy all of your informative posts. I have a concern and am hoping to pick your brain. Would there be any circumstances by which I could have given up my right to request "validation" ? More directly, if at any time, I made a small payment, does that waive my rights for validation after the fact. As this debt is for an old credit card and has almost 50% of it's balance inposed as interest, I am now concerned that the rates were not computated correctly and would very much like to see media or proof of how they arrived at said balance. Any thoughts would be helpful. Thank you.
  20. Crdt Dfnse

    Crdt Dfnse Well-Known Member

    Re: Use Of Escrows

    In a nutshell, noâ?¦ Making a payment, however, does restart the statute of limitations for litigating recovery. Simply put, a right of validation (presuming youâ??re dealing with a collection agent and not the original creditor) does not end after the 30-day initial notice period. Yet asking for one after youâ??ve made payment(s), is sort of like trying to fetch a bullet once itâ??s been fired. It serves no real purpose, other than to demonstrate futility of the exercise. [;-)

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