I have two car loans that are current right now but have rencently been seriously delinquent due to a divorce. Does anyone think that if I sent both of them a check for say 90% of the payoff amount and request for either deletion of the tradeline or reporting it as paid in full never late, that they might actually do that? I'm from Cali as well. Does that have any impact on whether that's enforceable? Also, if you don't think that would work or is a good idea, I have seen people mention the threat of bankruptcy and that the have two options file, or take the limited amount they have to negotiate a payoff and good credit. Will this work for me in my situration or with a secured debt? Basically I have money right now to handle these debts (and I want to) but I would love to pay them less than what they say due to the fact that I have probably paid both twice over with late fees etc. and I also want my credit restored. Thanks for any help.
If you wait awhile they will make you an offer to settle for less then the original amount. Getting a deletion for settlement on those isn't very common from what I've seen. Unless you're getting sued, I'd wait it out.
Ok... How about this letter and plan of action. First, I write this letter to the Car Loan creditor May 8, 2004 Account Number: XXX-XX-9990 Dear Mr. Car Loan Creditor This letter concerns the money owed on the above referenced account. For the past several years the 2000 Kia Sportage has been paid for to Union Acceptance Corp and now to Systems Services Technologies as you have taken UAC over. Because of the sever delinquencies that have been acquired on this account, the resulting credit history and the fact that the car itself is not worth more than $4000 on the open market, it has been advised that there are only two option for me. 1.) File bankruptcy or 2.) Get a loan from relatives and try to pay off all the loans with that sum of money and also have your credit reported as Paid Never Late or the account deleted from all credit reporting agencies. I am therefore offer a settlement to this debt for $8000.00. Considering the amount of late fines and interest payments that have been paid over the years, I feel this is a reasonable offer. To settle this debt a check will be sent to you for $8000 with a restrictive endorsement and if you cash that check it will constitute an accord and satisfaction. In other words, You will receive from me a check that states "cashing of this check constitutes payment in full for account # XXX-XX-9990 and an agreement that the account shall either be reported as Paid in Full/ never late or deleted entirely from all credit reporting agencies." If you cash this check, that check will take care of what I owe you. I have raised a limited amount of funds to handle all accounts in hopes of reliving this burden. The only other recourse due to my particular situation is the easier one : Bankruptcy. Sincerely, MirsterMan Then, I wait 15 days for an objection or reply and send out the check with another letter that say... June 1, 2004 Account Number: XXX-XX-9990 Dear Mr. Car Loan Creditor Enclosed is a check for $8000 to cover the balance of Account Number XXX-XX-9990. This check is tendered in accordance with my letter of May 8, 2004. If you cash this check, you agree that my debt is satisfied in full and you must now either report my account as "Paid in Full/ Never late" to the credit reporting agencies or delete it entirely. Sincerely, Misterman Then I will write on the back of the check This check is tendered in accordance with my letter of _______ (date). If you cash this check you agree that my debt is paid in full and you must now either report my account as "Paid in Full/ Never late" to the credit reporting agencies or delete it entirely. This safe guards me as I'm a Californian, correct? Any thoughts?
I've heard a lot of horror stories where restricted endorsements didn't hold up in court unless they are worded correctly. Your letters make sense, but if it were me I'd negotiate before sending money. An idea of lot of people have done is take the money and buy another car. Let the first one get repoed and then negotiate the balance that they say you owe after they sell the car. It buys you time and you then are negotiating an unsecured debt. There have been others here that have experience with settlements. It's quiet here on the weekends. You may get more replies during the week.
Well I appreciate the words of wisdom anyhow.... As for the wording on the back of the check, I got it from creditinfocenter.com where they are talking directly about the law that was passed in California regarding just that. They say to write exactly what I've written except, I added the part about the credit reporting or deletion. I am current on both loans and am looking to buy a house soon so I don't want them to fall into any more delinquency. I'm trying to negotiate and if they just absolutely won't budge in any direction, I'll still pay them off for better credit. I agree though that I would like to negotiate before sending any money which is why I will probably wait a little longer to get a response. I was even thinking about asking for a response from them in my letter but then though it might be like asking them for a rebutle. I'll wait though to see what others have to say.
1*I'm trying to negotiate and if they just absolutely won't budge in any direction, 2*I'll still pay them off for better credit. misterman ========================== 2* Just paying won't give you better credit. ><- <>- ><- <> ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <>
