Leveraging A Settlement Letter

[PayYouNever]

I recently sent a GW to Wachovia in regards to an account that I fell behind on, but paid off, which Wachovia reported as a charge-off as they continued to take my money and then I paid a settlement when legal action was threatened. At the time I was unaware of any PFD tactics. However, I recently ran across this letter from the law firm that was handling the case.

Trauner, Cohen & Thomas, L.L.P.
2880 Dresden Drive
Atlanta, Georgia 30341

February 14, 2006

RE: Wachovia
Amoutn Due: $0.00

Dear Sir,

Please be advised that your account has been settled.

If our client referenced above has made this account a part of your credit history, we will notify them of this transaction and expect that our client will make the appropriate adjustments to your credit record.

If the remaining balance is equal to or greater than $600.00, we are required by Federal Law to report this amount. blah, blah, blah.

Sincerely yours,

Michael J. Cohen
Attorney at Law"

The settlement that I reached with Michael over the phone was that this settlement was not to be reported as a charge-off or collection, yet that's how it's being reported to all 3 CRAs.

Any advice on how to use a copy of this letter to increase my chances of having a reporting change or to increase the possibility of GW?

[Anonymous]

Grrrrrrrrrrrr.........................I think that your pal Michael gotcha, I'm afraid.

Even though you negotiated over the phone for a "reporting deal", it wasn't in writing.  The way that he worded the letter is so vague that it now becomes "your word against his".   All he has to say is "I didn't promise anything - all I said was I will report it to the CRAs as 'paid'".

On the plus side, this letter is solid proof that you shouldn't have to worry about this account anymore, so save this letter.  If someone does try to collect on the remaining balance (which could happen, but I doubt that it will), you can send a C&D letter to the collector with a copy of this letter as proof that the collector is unauthorized to collect the debt.