Received an "official looking" Western Union form letter in the mail yesterday from Fleet offering to settle my account before it goes to charge-off for 25% of the balance for a "Paid-settled" rating. This is a "form" letter and I am wondering if this is official enough or does it need to be on their letterhead with signature, etc. I have sent settlement letters with terms which they have never responded to and now I get this. Anyone familiar with settlements or have any of you received something like this before and did they honor the agreement?
25% is a fair offer - however - the "Paid/settled does nothing to help you - the unpaid/charge off/collection status is about the same score wise. In addition setttlement notations have a negative connotation. I would send them a settlement counteroffer. Inform them you will accept their offer with a modification of the terms to indicate the account will be reported as Paid/zero balance or if it is listed as a collection account removed totally.
