The CA validated the debt, should I make them a settlement offer now?

Discussion in 'Credit Talk' started by TheGooch, Oct 16, 2011.

  1. TheGooch

    TheGooch Active Member

    Background: I owed money on a car when I left the USA for a job overseas. I tried to sell it before I left but failed. I called them and did a voluntary repossession which payed off part of what I owed. To pay the rest, I offered them a settlement (over the phone, unfortunately) which they agreed to. After I sent them the agreed upon amount, they didn't contact me after that, and the debt remained on my credit reports. I've called them twice since, and each time the person who answered apologized and promised to remove the mark on my report and send me the paperwork for the agreement. They never sent me anything and then negative mark is still there.

    Last month they gave my debt(which shouldn't exist) over to a collector. They tried calling but since I'm on the other side of the world I was asleep. They later sent me an bill/invoice requesting payment in full. I responded with a DV letter, and they mailed me back a copy of my original lease for the car.

    I don't think I have any options besides ignoring them (let it age off) or making a settlement offer(30% of original balance?). I am definitely not paying them the inflated amount they are asking me to pay.

  2. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Unfortunately, without having the agreement in writing, you're really kind of left hanging here. I would try requesting something in writing from the OC again, but make sure you deal with a supervisor this time and not some average CSR. It sounds like every time you've communicated with them they've admitted to the fact that you reached a settlement, yet no one has followed up on sending you the proper documentation. Getting that agreement in writing will be the key.

    Also, has the debt been sold by the OC or just transferred to the CA? Have you disputed anything through the CRAs yet?
  3. TheGooch

    TheGooch Active Member

    How can I tell if it's been sold? I used to know but I've forgotten.

    Disputing with CRA - This is what I was asking about indirectly. The debt itself was valid, but we made a deal and they broke it. Without paperwork I cannot prove this, so I went the DV route. Since I do not have documentation to disprove the debt, will disputing with the CRA help? Would I just say "not mine" and hope for the best?
  4. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    You can always call and ask if the debt has been sold. Take a look at you credit reports too and the OC might actually report it as "Charged Off/ Sold".

    Regarding the dispute through the CRAs, take a look in our sample letter section at the Dispute an entry on your credit report letter. Basically, you just want to keep it simple. There's no reason to go into a lot of details on what is inaccurate or outdated.
  5. TheGooch

    TheGooch Active Member

    Its difficult to call since I'm overseas ( time difference, cost,etc ), but I decided to send a "not mine" dispute and we'll see how that goes. Oh, that was after I took time off of work to try and call back to the USA and ask the OC about this, but no one answered their phone.
  6. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Frustrating...where are you living? I lived overseas for several years in Asia and loved it. Everything was sooo cheap!
  7. TheGooch

    TheGooch Active Member

    I'm in Japan, and things here cost about twice what they do in the USA. Fortunately, I have access to a military base and can shop there at US prices, which is what I do. If I tried living on the economy, there is no way I could be doing a debt snowball, which is the whole reason I took the job. So far I've taken about a 20% pay cut due to the dollar's fall against the Yen, it almost doesn't make sense to stay here anymore, but in about 5-6 months I'll be done with the worst part of the snowball and I'll come back (happily) home. :)

    Anyway, I'll keep up my struggle to clean my credit. Worst case I end up settling with these guys again( in writing, this time) which will cost me another $1400 or so.
  8. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    I was in China and Korea, so yea- big difference from Japan. Korea is much more expensive than China, but nowhere near Japan.

    Best of luck as you continue the debt snowball, and keep us updated on your progress!

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