Need Feedback on a PFD Letter

[Anonymous]

I need feedback on this PFD letter I'm going to send in a few days. The charge off is 3 years old. They just sold it to this company, Nationwide last month. I've gotten nowhere trying to negoiate with the OC Amex (they keep referring me back to Nationwide). Do I need to make reference to AMEX (that they too agree to the terms) in the PFD since they are the OC? Nationwide sent me a letter two weeks ago saying that any payments should be made out to AMEX. I just want to make sure that if Nationwide agrees to it that AMEX won't come back later on to report as a charge off or try to collect the balance owed.

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Nationwide Credit Inc.

2015 Vaughn Road NW, Ste 400

Kennesaw, GA30144-7802

Re: Collection Account for Original Creditor American Express Account #: 3715707006-xxxx

Amount: $28,895.12

To Whom It May Concern:

This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you regarding this account. The account number I have is the one listed on my Experian credit report – which omits the last few digits.

In the spirit of compromise, I am willing to pay 33% of this account if you agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion) and the deletion of the October 2007 credit inquiry from all three credit reporting agencies. The purpose of this settlement is merely to have this item and the recent credit inquiry removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.

If you agree to the terms and accept this agreement, certified funds for the settlement amount of nine thousand five hundred thirty five dollars ($9,535) will be sent to Nationwide Credit Inc. in exchange for full deletion of ALL references regarding this account from my credit files and full satisfaction of the debt. As certified funds will be used for payment, there shall be no waiting period regarding the deletion of this account from the credit reporting agencies.

Nationwide Credit Inc. agrees to delete ALL information regarding this account from the credit reporting agencies WITHIN TEN CALENDAR (10) DAYS following receipt of payment as specified above and will not discuss the terms of this settlement with anyone, excluding your client on this account. If contacted by any third party, including credit-reporting agencies, Nationwide Credit Inc. will not acknowledge that any settlement offer was made, accepted or executed and will, in fact, deny knowledge of any such account.

If you agree to the above terms, please prepare a letter on your company letterhead explicitly agreeing to the same terms as the above settlement offer and have it signed by an authorized representative of Nationwide Credit Inc. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state.

Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn and I will request full validation of this alleged debt, as provided for by the Fair Debt Collection Practices Act.

Please address all correspondence regarding this account to:

[PayYouNever]

AMEX won't go for 33% settlement, you'll need to do maybe 50 to 60%. Unless you can document that you have extreme hardship (i.e. Tax liens), then 33% isn't acceptable to AMEX or Nationwide.

I've negotiated four settlements (with Citi, Providian, Wachovia and a landlord CA), and pretty much everything under 50% is a hard play for them. Mainly because the CA gets 50% of what it takes in relation to the original debt and whatever interested has accrued, so to offer below 50% means the CA gets no money off the transaction... except the interest, which probably quite considerable in your case with $28K debt. So this needs to be part of your thinking when negotiating.