Need Help with a Settlement...

One, get everything in writing and don't settle for anything less than the complete deletion of the tradelines from your credit reports.

The CA buys your debt from Citibank for pennies on the dollar. They'll tell you anything on the phone to get you to pay. Unless you have it in writing, you pretty much have no legal standing.

Also, there's no way the CA can make Citibank do anything. Again, this is just one more piece of BS to get you to pay them. Personally, I wouldn't deal with the CA at all. If they call you, tell them to put it in writing and that you won't discuss it on the phone. Then send them a cease and desist letter (check the samples letters on the message boards here).

In the event you pay the CA, you'll most likely end up with bad OC and CA tradelines on your credit reports in addition to being out the cash you supposedly settled on.

It can be tough playing hardball with these guys but don't let them scare you into making a bad move.

Do some searches here on the board and read up on people who have simmilar problems. Helps allot.

My $.02.

 

You're absolutely right. There is no point in settling for a pd. charge-off. Doesn't do any good at all on your CR's. The CA cannot tell you what the OC will report. That is entirely up to OC. Deal only with them if at all possible.

 

In the event the OC will not discuss anything with you, what option do you have left than to deal with the CA? I'm in a similar situation where I'm concerned the OC might sue, however they will not discuss anything with me so I'm essentially forced to talk with the CA.

 

1*I have verbally agreed to settle a Credit Card debt for roughly 50% of it's outstanding balance
2*They have verbally stated that this will absolve me from any collection activity, and will pay my balance in full.
3*they said Citibank will change the account status to charge off. paid in full,
4*(Creditor's Interchange is not listed on my Credit Report)
5-My question is, what do I need to do to cover myself?
we b good
===================
1* Who gets the money if you settle? You need to know this!
2*Don't bet on it!
3*But they didn't tell you that a paid or unpaid charge off is a bad score killing credit trashing Neg.that will remain on your reports for the next 7 Yrs. during which time you will get to pay over charges on your homeowners and auto insurance and jacked up interest rates on your loans did they??
4*So;what are you going to do when it does show up on them?
5*A My advice is never pay a CA one red cent on an un validated debt.


THE END ** *** ** LB 59

 

1*One, get everything in writing and don't settle for anything less than the complete deletion of the tradelines from your credit reports.
The CA buys your debt from Citibank for pennies on the dollar. They'll tell you anything on the phone to get you to pay. Unless you have it in writing, you pretty much have no legal standing.
2*There's no way the CA can make Citibank do anything.
3*If they call you, tell them that you won't discuss it on the phone.
4*Then send them a cease and desist letter.
5*Do some searches here on the board and read up on people who have similar problems. Helps allot.
BlakMajix
===============
1*If the CA has not validated the debt he is a long ways from this step.
2* When we (Re CA) make the purchase or servicing transaction, we receive a power of attorney that gives us the inherit rights under the original cardholder agreement. We have the ability to "bind" the original creditor in certain situations. This gives us the right to settle an account and REQUIRE that the original creditor, such as Citibank, MBNA, Household etc. remove the original trade line and OURS.
WestCap
===========================
Someone was asking a while back about getting the Oct to delete in addition to The CA.
Don't know who the poster was or on what thread they posted but here is your answer!!
This gives us the right to settle an account and REQUIRE that the original creditor, such as Citibank, MBNA, Household etc. remove the original trade line and OURS.
3*Good advice.
4*Good advice if you're trying to get him sued.
5*He needs to click on and read the validation link in my signature below.
THE END ** *** ** LB 59

 

You're absolutely right. There is no point in settling for a pd. charge-off. Doesn't do any good at all on your CR's. The CA cannot tell you what the OC will report. 1*That is entirely up to OC. Deal only with them if at all possible.

tulipchic
==================
1*Why do that when you have more rights and better weapons to deal with the CA??

 

1*In the event the OC will not discuss anything with you, what option do you have left than to deal with the CA?
2*I'm in a similar situation where I'm concerned the OC might sue, however they will not discuss anything with me so I'm essentially forced to talk with the CA.
timmyq
==============
1*You don't need or want any other option.
2*The OC can't sue you if the CA owns the debt so why are you worried about that???

Have you ever wondered why the OC don't want to discuss it?????
Also why are you talking to the CA??????

 

CA Doesn't own the debt, OC does. OC will not discuss it however. Does not leave much option other than to communicate with CA or risk being sued by OC.

 

How much money here?

 

6 grand.

 

You pay them the $3500 on a verbal agreement.

The next thing you know is you get a collection tradeline that is marked "settled for less than full balance" and a month later the next CA pops up demanding another $9,000.

If you paid the first CA with a personal check, they will then clean your bank accounts out first leaving all your outstanding checks to bounce, then sell it to another CA.

NEVER deal with a CA unless you get the terms of the agreement in writing.

 

Timmy,

This is touchy.

First, a CA cannot tell you what the OC will report. But that's ok, forget that part.


Dear Joe,

Thanks for being so professional on the phone on xx/xx/xxxx,

Based upon that conversation I intend to accept your generous offer. I'd feel so much better though, if you'd be kind enough to simply approve this written agreement and fax it back to me at xxx-xxx-xxxx.

As soon as I get it back I shall forward a MO. in the correct amt. directly to your office by first class mail, and to your attention.



Contingent upon the receipt and successful cashing of a payment instument in the amount of $______, account number: xxxxxxxxxxxxxxxx, for whatchamacallit bank will be considered PAID IN FULL, with no balance deficiency.

Moreover we promise NOT to attempt to repoprt this item to any credit reporting repository.

It is understood that the undersigned does have the authority to make this agreement and that any electronically transmitted copy hereof shall be considered as valid as an original.


______________________________
Signature

__________
Date




That's all you need! Keep it real simple so that even a monkey can understand it, (threre's a good reason for this).


Make this up and fax it directly to the person to whom you spoke about the agreement. You can even put Attn. Joe Schmo on your fax cover.

Or you can put all of this on the same 8.5 X 11 sheet of paper.

That said, there's a few thoughts I'll bring up here.

->

 

First of all, you state that only the OC is reporting to the CRA's. This is good.

It's important to know that the CA could also report if they chose to.

If they did, now you'd have 2 TL's for this debt rather than just 1. In this case 1 plus 1 = 10, (not 2).


It's a LOT harder to deal with 2 entities regarding a TL than just one. So, at all cost you want to make sure they do NOT report.


Second, the others are right. If you don't get this in writing they WILL sell the balance and the 2nd CA will start chasing you. It is perfectly normal for people today to request a written agreement before you pay this. We live in a country of law. That means we live in a country of contracts.


Third, once you can get this acct. closed, wait a while (about 2-3 months) and start attacking the DF (the OC) for inaccurate reporting. Eventually they will just delete because now it's a paid debt and not worth their time to argue about it.

We'll show you how when the time comes.


Fourth, You're right. This is large enough to see the OC direct their atty. to simply file suit. That's why you should settle it.

BUT DON'T IF THEY WON'T SIGN THE AGREEMENT.

We'll work out another strategy.


Good luck, and I applaud your decision to just be rid of this headache. Besides, settling an $8,000 debt for $3,500 is a good deal. You're smart to take it.

You can make up the $3,500 in no time.

 

My above comments were directed at Webgod.

Sorry



Timmy, you should start your own thread. That way you can get focused help.





I'm goin to sleep now. lol

 

1. Who cares? He owes the money, doing the settlement will take care of the debt. Why should it matter where the money goes after he pays it?

2. He should get the offer in writing, and then keep that letter for his own records.

3. A paid charge off is bad for the credit report, but not as bad as an unpaid one. He's already likely to pay higher rates for his credit and insurance, so paying this charge off isn't going to change anything. It will not remain on his credit for seven years because the clock on the SOL has already started ticking, and part of that seven years has already passed.

4. What if it doesn't?

5. Part of his goal here is not to get sued and to take care of the debt. Right now he's got a great settlement offer on the table, turning around and demanding validation is the same as turning down this offer. It may not be on the table next time.

 

1. Who cares? He owes the money, doing the settlement will take care of the debt. Why should it matter where the money goes after he pays it?
3. A paid charge off is bad for the credit report, but not as bad as an unpaid one. He's already likely to pay higher rates for his credit and insurance, so paying this charge off isn't going to change anything. It will not remain on his credit for seven years because the clock on the SOL has already started ticking, and part of that seven years has already passed.
4. What if it doesn't?
Mycroft
1*Because if the money goes to the CA The Oc cannot sue him.
3*keeping it on his reports certainly isn't going to lower them (RATES) for him any time soon then is it??If paying it isn't going to change anything -Then why pay it?
4*No effect, but again what if does and why take the chance?

THE END ** *** ** LB 59

 

Re: Re: Need Help with a Settlement...

Judging by his latest post today it was never on the table.