Hello I am in the process of going through my credit report and paying off the debt that I see listed on there. For example, lets say that I have a debt thats from XYZ Financial for $800. I call them and they offer to 'settle' the debt for $500. I agree to those terms. What should I ask them to to fax or mail to me, showing their intent to change the listing on my credit report? I remember reading about it some years ago but dont remember it. Ive heard on some occassions that its best to have them fax a letter saying that its paid in full, deleting the lates as opposed to 'settled as agreed.' If anyone can advise, Id appreciate it. Thank you
Did you counter-offer? Or are you happy with $500? Your money is your leverage and you can probably do better than $500. The best situation is removal of the TL (trade line). Once agreement has been reached on payment, and status you send something like this: " RE: Account 1234567 This will confirm that XYZ Financial has agreed to accept $XXX.00 as settlement of the above referenced account. Payment will be made on or before XX/XX/XX. In consideration of the settlement amount being paid, XYZ Financial has agreed to remove any derogatory reporting of this account from any Credit Reporting Agency." You do want it in writing. You may also want to consider making payment by certified check and keep a copy of the back and front of the check sent. Send it all certified mail, return receipt requested because documentation is important.
Thank u for the response! The XYX fin. and dollar amount were just examples, not my real situation! So I should send that sort of letter to them, Im assuming via fax or certified mail...wait for it be signed and returned and then send payment as agreed.
Are you sure that the CA's listed are really your legitimate debts? If you're looking to just clear the accounts, and know they're yours, start negotiating at 10% of the debt total. If you're able to record the telephone call, do it. Have a record. In the course of conversation, repeat the date and the individual's name that you're speaking to in regard to the debt. Generally speaking, you should be able to reduce the debt to less than 50%. I wouldn't fax from home or work, I'd send the confirmation letter of details via certified mail return receipt. Nor would I pay by personal check or debit card. It's worth it to pay by certified check, preferrably from a bank that you normally don't use for your transactions. Keep a copy of what you send, then the digital copy of the certified check when it clears. You then have the proof you kept the contract. If, just by chance, the CA continues to report the TL, after payment agreement so stated in the letter, that opens the CA to a violation and/or breach of contract. This is why records are our friends.
