I'm sure this is nothing new, but its rather new to me. I have two accounts that are in arrears, one 180+ days and the other 150+. I was recently contacted by 2 CA regarding thes debts. Both offered to settle the accounts for a substantially lesser amount. Both stated they did not own the debt, rather they were acting on behalf of the OC. One letter wanted me to make the payment payable to the OC, the other to them. When I asked if I agreed to their settlement offers, could they delete the TL or report it as PAID AS AGREED. Both stated they could not. I advised them I would contact the OCs and ask if they were willing to. Naturally, the CAs said that would never happen and started spouting off threats that if I didn't accept their offers ithnin a few days they would be withdrawn and I would have to pay the full amount. Believing they were full of it, I sent letters to the OC's with the copies of the offers from the CA's offering to accept the setttlement agreement with the stipulation they change the TL reporting to PAID AS AGREED. I'm hoping I made the correct decision. Please advise. To the best of my knowledge, the CAs have not reported anything to the CRAs. Is there any value in sending the CA's a DV letter at this point?
It sounds like you may have gotten some shaky advice somewhere along the line. From what I've read here and elsewhere, CAs are generally not likely to accept pay-for-delete offers. It does happen, and a lot depends on your individual circumstances, but they are by no means obligated to do so. Nonetheless, how long ago did the CAs first contact you? If it's over 30 days, then a DV has no teeth. You can send it anyway, but they're under no obligation to do anything about it. If it's under 30 days, then yes, immediately send a DV via certified mail with signature required. As in, right this instant.
The CAs are not reporting, but the OC is. The CA's simply can't agree to delete the TL because it is not there's to delete,
That's exactly why I'm not a big believer in the pay-for-delete methodology. If some people have managed to get it to work, then great. I can only see it working through the OC, and even then only in desperation. If the OC doesn't feel that you have any assets and might be judgement-proof, or the lawsuit SOL has passed, then that's really the only time I would see it being possible.
One OC is Bank of America for $16K+ and is currently in Charge Off status. The other Target NA for about $5.5K - not in Charge Off yet.
Odds are good that BoA will produce documentation. Though in today's financial climate, your odds are better than ever -- for whatever that's worth. As for Target, try a slightly different approach. By all means, send the DV to the CA immediately. However, ask Target (by mail, of course), if you can work something out. They have some tricks up their sleeves and may be willing to recapitalize all your missed payments, or something similar. That way you're able to immediately resume making "standard" monthly payments without having to slog through a few months' worth of overdue payments. Maybe they'll even ratchet down the interest. Don't grovel, but maybe add something along the lines of "Due to recent circumstances I am experiencing extreme financial hardship. However, I wish to resolve this matter amiably and quickly." Leave out all the other details; this just shows that you do regret the matter, but without admitting liability, you want to start making payments. In the unlikely event that a human being makes the decision, this may help. The only reason this may work is because an OC would rather start getting late payments at reduced interest than lose more money in dealing with a CA. Whether or not the OC decides to "help" you out is based on a computerized risk model, and factors such as "he contacted us" and "he's willing to pay something" may help swing the number in your favor. Or, it's possible that none of this will work, and you'll be no worse off than you are now.
Thanks! After receiving a settlement offer from Target's CA and speaking with them, I sent a letter to Targer directly with a copy of the settlement offer. I asked, humbley, if I paid their settlement offer, would the remove the derogs. Did virtually the same with BOA. Waiting to hear. I did, however, send off hte DV letters. Thanks so much for the great advice! Will keep you posted.
