Well, they verified by sending me a copy of a check I wrote to them. That pretty much determines that I need to pay this. I owe $1214.08. I have two options for them: 1) Payment in full with deletion or R1 (which I don't think they'll go for or even respond to). 2) Pay 20-40% of debt and let them update to settled/paid chargeoff. Which option is more feasible? Should I offer both in my letter to them? TIA lb
Option #2 seems like the one that's liklier to be accepted and carried out, but I would start with Option #1. I wouldn't include both in the same offer letter, since it sort of implies that they absolutely must choose between the options presented to them, which of course they don't. Since they see that you clearly have the money to pay them in full in the first place, they could simply demand payment in full in "exchange" for an updated notation of Paid Charge-off (I use the word "exchange" loosely, since they're really not doing you a favor by fulfilling their obligation of reporting the tradeline accurately). So start with a letter outlining Option #1, or something close to it (like 60-75% in exchange for R1 or total deletion); then, if that doesn't work, they'll probably counter this letter with their own Option #2. Before you even get that far, though, what did you originally ask for in your verification / validation letter? Maybe someone more experienced on this board can speak to this, but to sum up an earlier thread, a check of yours for $25 doesn't necessarily mean you owe them $50 more, $100 more, or whatever other amount they pull out of a hat. In other words: yes, the account is yours, but is the collection amount (whatever it is) what you properly, accurately owe? And can they prove it? wajaba
Thanks for responding wajaba, To answer/address your questions/comments Option #2 seems like the more likely one to be accepted and carried out, but I would start with Option #1. I wouldn't include both in the same offer letter, since it sort of implies that they absolutely must choose between the options presented to them, which of course they don't. Since they see that you clearly have the money to pay them in full in the first place, they could simply demand payment in full in "exchange" for an updated notation of Paid Charge-off (I use the word "exchange" loosely, since they're really not doing you a favor by fulfilling their obligation of reporting the tradeline accurately). So start with a letter outlining Option #1, or something close to it (like 60-75% in exchange for R1 or total deletion); then, if that doesn't work, they'll probably counter this letter with their own Option #2. **************************************** This was a concern for me also. I worried that if they knew I had the full balance, they would only accept that. So, I'll take your advice and keep both offers out of the same letter. Before you even get that far, though, what did you originally ask for in your verification / validation letter? Maybe someone more experienced on this board can speak to this, but to sum up an earlier thread, a check of yours for $25 doesn't necessarily mean you owe them $50 more, $100 more, or whatever other amount they pull out of a hat. In other words: yes, the account is yours, but is the collection amount (whatever it is) what you properly, accurately owe? And can they prove it? ***************************************** I sent a regular validation letter (found in the sample area). The letter really pertains to CA's but FCNB responded (unfortunately). What you say interests me. Can I demand a full account of what I owe? The balance is $1214.08 but my credit limit was only $750.00. Also, if I decide to settle, do I offer a % of the CURRENT balance or my credit limit? TIA.
Sure. You should be entitled to know exactly how they arrived at the figure they're giving you. In fact, if there's a discrepancy between their EQ, TU, and EX entries (and there almost always is), you can begin a letter by saying something like "Dear xxxx, It has come to my attention that you're reporting this tradeline to the major credit bureaus in an inconsistent manner. The fact that such discrepancies exist raises serious questions over the validity of the collection amount you claim that I owe. Please provide complete proof blah blah blah..." (I'm sure that several people on this board can do a much better job at prefacing such a request; that was just something off the top of my head). Unfortunately, it'll probably be a percentage of the overall figure, not just your original credit limit. Hope that helps, wajaba
