Hi there, I was successful at settling with my original creditors before charge-off etc and the first letter came in the mail today. I am awaiting the others. In the agreement they state that (as I demanded): "(the OC) will not attempt to collect the remainder of the debt themselves, transfer or sell the remaining balance of the debt to any collection agency or any debt recovery service and the account will be considered paid in full". Here is the questions: 1) Is this statement in writing enough to keep the OC from trying to collect this debt later on, either themselves or a lawsuit? 2) If the account ends up getting charged-off anyway after the payment-per-agreement is made, can this statement stand up to any collection agency that may end up with this account? I do not want this to come back and haunt me again down the road without some kind of protection. The 1099c forms are a whole year away yet and will be no help to me now. And who is to say they will even send me one. Any info would be wonderful! Thanks so much board for all of your help! Sweet Me!
since you settled with original creditor the collection agency would have to delete there tradeline since you never dealt with them or owed them anything, and had no agreement with them what so ever. that sounds good it assures the debt is paid in full and they can't sell the debt that's the most important thing. You could have tryed to neg. for them to delete the trade line or remove derogatory info they will report your account for settled for less which is neg. but you can always dispute if they report wrong balance ect.. and have them remove later what creditor was it? what % of the debt did you settle for?
Hi PINK! Thanks for the info. The creditor that I received the letter from today is Discover and they settled for less than 50%. (one lump payment, about 40% of what was owed) My other creditors agreed to the same amount roughly, as I gave $ amounts, rather than percentages. In all truth, after 5 months of over-limit charges due to late fees adding to the balance and the late fees..the amount is actually about 50% of the last current balance, minus $200 each account, so this seemed totally fair to me. (In other words, they are getting the original 50% of the principle, minus $200.00, so actually they are getting less than the original 50%) I am still waiting on the others to send their letters. I can finally breath a bit, but will be so happy when this is all over. Any more advise? Thank you again, very much! Sweet ME!
write on check cashing of this check represents payment in full and make copys of the front and back find copier that will give you a double sided copy
I recently sent settlement letters to the collection agencies - was this incorrect? I was also wondering what recourse I had if after a settlement was reached and I paid the settlement if the CA then refused to delete the info. If we reach a settlement then I would dispute with credit agencies, they wouldn't confirm and the negative should come off? Thoughts?
I want to make it perfectly clear that my comment here reflects on just one aspect of your settlement actions and no other part. Now then the reason I put the above disclaimer in place is that I just don't know how to say what I have to say without its possibly being seen as a negative comment on the rest of it which isn't the case at all. All of what you posted sounds just great. One thing you did right for sure and that was that you made them write the contract.
I say make them write the contract or its no go. The reason I advocate that is that in the event there is a dispute the court will look at the intent of the maker of the contract and whether or not he broke his own contract. If he can't keep the terms of his own contract he is a dead duck for sure.
Very good point. I sent a settlement letter out to a CA. If they are interested in settling, I will ask them to write a contract for the settlement amount and proceed from there.
