Within the past year, my fiance and I got into some difficulties managing our joint checking account. (We were definitely BOTH to blame). All of the checks that bounced were forwarded to the same small collection agency in our neighboring town. Unfortunately, I didn't realize these bounced check collections were being reported on our CRs until last month when I began this journey. I've managed to pay off all checks except for the two biggies. I have three paid on my CR and my fiance has five or six paid on his CR. They just reported his unpaid biggie ($355, which I am going to pay this week), and my biggie ($210, also getting paid this week) isn't being reported on my CR yet. Do I have any leverage to get these recent derogs off of our CRs? I can't figure out which letter to write, because my situation is both paid CA and unpaid CA, same CA. Do I write a letter to try to negotiate that they remove all derogs if we pay the biggies? I don't know what to do, and I want to pay this as soon as possible (especially before they report my biggie). Any advice??
Have you tried disputing w/the CRA's? I'd do that, and possibly a goodwill, though I'm not so sure it'll work in this case. Though, it may. CA's aren't exactly known for their goodwill. I'd def. not go nutcase on them yet, as you still owe them $$.
I doubt that disputing with the CRA is going to help, as these are all recent collections, and the CA is bound to verify. I was hoping there was something I could do before paying the last of the collections this week, and losing any leverage I MAY have. It almost seems like I need a combination goodwill/"promise to delete when paid" type letter. I've searched for a template for a promise to delete when paid letter, but I can't find anything. Maybe someone could point me to a link, or has another suggestion?
Anyone? I really want to pay these collections ASAP, but don't want to screw myself by not using any leverage before I do.
from: http://consumers.creditnet.com/straighttalk/board/showthread.php?threadid=34100 Nodding, Validate first! lizardking just posted this a few days ago, IF they validate you still want to offer a pay for deletion, that's a big if, from: http://consumers.creditnet.com/stra...3731#post243731 sassy Here is how you word the settlement letter with the collection agency. Send something like this to them tell them as soon as they sign return it you will pay them a check for 30% of the disputed debt. The alleged debtor (your name) does not admit liability for the claims made by (collection agency/original creditor). The purpose of this settlement is merely to avoid the potential future costs of litigation. Both parties agree that this settlement for 30% of the disputed debt shall be confidential in no way an admission of liability or acknowledgment that the debt is valid. Both parties agree that no future reporting or verification of the alledged debt shall be provided to any credit bureau. ________________________ Your sig ________________________ Collection Agnecy Authorized Sig
Is it very likely that the CA will settle for 30% of a debt that less than a year old? I know the damage has already been done to my fiance's CR, (whether paid or not paid), but I don't want anyone taking him to court for $355. I feel like I'm just being dense on this, so I'll explain what I think I've been told to do. Send validation letters to the CA for all of the collection accounts they've listed on our CRs (including the $210 collection that they haven't reported yet...keeps them from reporting?) Hope they don't validate. If they do validate, send letters asking that they delete all of the accounts in exchange for payment of the biggies (my $210, his $355) I'm scared that if I DON'T pay, I might incur legal wrath, but I don't have experience at this sort of thing. At least now I know where to find an example of a "settlement letter". One more question. If I send the settlement letter, with an offer to pay a percentage, should I offer a higher percentage to delete all accounts? Like 30% to delete this account, and 70% to delete ALL accounts. Lord, I wish I knew what I was doing!!!
On your settlement letter, as with any other negotiation, don't open with your final offer. You use 30% as a starting point for your negotiation. They'll probably counter with 100% and no deletion. You'll move up to 50% and deletion of all. (BTW, if you don't get all deleted it is going to be of far less value to you. The entries are not proportional. It's the last CA coming off of your credit report that really makes a difference in your score.) At some point you may have to make an offer and wait....wait....wait. If they think the waiting is driving you crazy and will make you go ahead and pay them, they'll wait you out and threaten everything they possibly can to scare you. Hang tight. Also, send them letters telling them they are to communicate with you only via mail. That should help with dealing with them and give you time to breathe before you respond. (also in writing.) Personally, and this is no one's opinion but my own, I would negotiate like crazy, but my bottom line would be to pay 100% for full total deletion. The cost to the credit report will be far greater than the amount of the accounts involved. (Keep in mind, I come into this with the philosophy of paying legitimate debts, but I have a BIG problem with being penalized 7 years for the privilege.) Hope this is helpful in some regard. DemPooches
Oh Thank you! Thank you! It sounds like you have had a little experience. I'll start working on validation letters. Do I send an individual letter for each account? Or one letter for each of us listing the accounts?
I would send a separate letter for each of you. There really is no connection between your credit reports, so these should be 2 separate settlement negotiations...one for you, one for him. There wouldn't be anything wrong with the letters being worded the same way though. I'm not sure there's a problem with them making the connection between the two of you if they notice. But I wouldn't try to tie the whole negotiation up together. Also, if you happen to get responses from two different collectors in the office, you might find one to be more helpful than the other and be able to use that to your benefit. All the best with it! DemPooches
