I have a friend who currently has a collection showing up on his CR. He sent them a validation letter last month and they still haven't got back to him. The collection agency has offered to settle the account for $500 less than the amount. He has a CC company that has given him 4 months to fix it before they jack his rate up to 24.95% on $4500, it use to be more. The collection is relatively new so it is killing his FICO scores. He could possibly get lower APR percentages on all his cards if the collection comes off. He currently has an offer for 3.9% BT for 6 months. Should he offer to settle at the last settlement offer for full deletion, using the BT for the money? This should save alot of money just at the current APR %. He could then possibly get all his CC APR's lowered saving even more money. He says he is pretty sure he owes what they say. What would you do?
