Just offered settlement

[BethJ]

I just received a letter from Midland Credit Mgmt offering a settlement of $240.22 on a $400.36 balance from Verizon Wireless, yet both appear on my Experian report as follows:

Midland Credit Mgmt

Status: Collection account. $400 past due as of Mar 2009.

DOFD June 2005 (6 yr SOL. Scheduled to stay on report until June 2011)

Date opened 03/2008

Reported since 12/2007

Original Amount $400

Recent Balance $400 aso f 03/2009

Verizon Wireless

This item is currently being investigated.

Status: Charged off.$400 written off. $400 past due as of Mar 2008.

DOFD Aug 2005 (6yr SOL Scheduled to stay on report until Aug 2011)

Date opened 07/2002

Reported since 02/2005

Original Amount $400

Recent Balance $400 as of 03/2008

I was getting ready to start PFD on various collections, but I'm not sure how to handle this one. I am thinking the settlement letter was prompted by my disputing the validity of the Verizon Wireless debt. What is the best way to proceed?

[Anonymous]

What is the Date Opened on your Verizon entry? It says 7/2002 but DOFD is later. What happened in 7/2002?

[BethJ]

From what I can remember, the date opened of 07/2002 on the Verizon bill was the date I first signed up for the wireless contract with Verizon. The later DOFD was the date of delinquency that first placed this as a collection issue on my CR.

I had the phone contract for a few years, before I had trouble with paying the bill. The huge bill is because I terminated my contract early...by not being able to pay my bill on time. I only had a month or two left on the contract and offered to pay for those months, which would have cost considerably less than $400, but because I was late they charged me an early termination fee instead. I fought it for a long time, but didn't get anywhere.

[Anonymous]

When did you dispute? If it's been within the last 60 days, I'd say wait to see how that plays out. If it's been longer, I personally would start your PFD letters.

[BethJ]

The letters were received by the CRAs on about March 25 of this year so the disputes are very new. The settlement offer is good until May 3, but I am guessing they would take the settlement past that date.