Reply
New Member
lissmiss
Posts: 4
Registered: ‎10-23-2012
0

Big Baddie Settlement Offer

Hi everyone, 

Was hoping someone could help me with this, trying to figure out my next steps with this one.... 

I have a CA on all three reports for $8000 from an apartment I rented back in 2009. I hadn't heard much from this CA, but then when I started getting serious about cleaning up my credit a couple months ago, I knew this monster of a baddie was going to have to be resolved, ignoring it any longer is not going to help me... 

So, I live in RI, but this CA is based out of MD, but the debt was incurred in MA. Which SOL applies? From what I have read, I think it is RI?

I sent a DV to this company last month and they did validate, they sent all the signed copies of my lease, all the paperwork from the apartment complex indicated why the amount was charged. I received that last week. 

Then yesterday I received a settlement offer from them for $2000. I don't have $2000 to pay them upfront, but they said if I call a payment arrangement can be made for multiple payments for the settlement amount. That sounds doable to me. 

At this point, I really want to get this cleared up, I'm getting married in January and my fiancee and I really wanted to start looking to buy a home hopefully in fall/winter 2013. From what I have read, I will have to have this debt satisfied before getting a mortgage, since it could turn into a lien on the house. 

This one has caused me ALOT of anxiety. I really want to get it cleared up, even if it won't benefit my score (but will it help, since it is listed as an $8000 debt with a balance of $8000?) 

What should be my next step? Write a letter outlying acceptable payment terms, CMRR, and asking in writing that once paid the status be updated to "Paid in full"? 

Thanks for any help!!!!

Valued Contributor
madmann26
Posts: 1,424
Registered: ‎08-30-2012
0

Re: Big Baddie Settlement Offer

The SOL applies to the state in where the debt occurred or where you lived at the time, I believe.

 

Since there appears to be a verbal agreement for a settlement offer, get it in writing, pay it and once paid, GW the bejeebus out of them. You can try a PFD first but sometimes a CA may want the full amount.


Starting Score: EQ 511 TU 552 EX 545 8/29/2012
Current Score: TU 705|EQ 690|EXP 698 (FICO)
What's in my wallet? Cap1 PLAT AU $1.25k; Cap1 Cash AU $2k; NFCU Siggy $23k; $4k WalMart DC; CFNA Firestone $2.2k; Amazon $2.1k; NFCU Cash Rewards $22K; AMEX BCE $18k; NavCheck $15k; Lowe's $10k; Citi DP $6.3k; AMEX ED $8.5k; Chase Freedom $4.5k
Goal Score: 700 across the board.
Take the FICO Fitness Challenge
My Journey
New Member
lissmiss
Posts: 4
Registered: ‎10-23-2012
0

Re: Big Baddie Settlement Offer

Thank you! 

 

ANother quick question... the written settlement offer came with a date to contact them to receive the settlement by a date in mid November. Would it be safe to say I can wait until that day to call and still receive the settlement, since I have that date in writing? I would like to save up in the next few weeks so I will have more to offer them. 

Thanks again for your input!! :smileyhappy: 

Valued Contributor
madmann26
Posts: 1,424
Registered: ‎08-30-2012
0

Re: Big Baddie Settlement Offer

I'd say you're covered up to the day that is stated.

Starting Score: EQ 511 TU 552 EX 545 8/29/2012
Current Score: TU 705|EQ 690|EXP 698 (FICO)
What's in my wallet? Cap1 PLAT AU $1.25k; Cap1 Cash AU $2k; NFCU Siggy $23k; $4k WalMart DC; CFNA Firestone $2.2k; Amazon $2.1k; NFCU Cash Rewards $22K; AMEX BCE $18k; NavCheck $15k; Lowe's $10k; Citi DP $6.3k; AMEX ED $8.5k; Chase Freedom $4.5k
Goal Score: 700 across the board.
Take the FICO Fitness Challenge
My Journey
Valued Contributor
p-
Posts: 2,612
Registered: ‎06-05-2008
0

Re: Big Baddie Settlement Offer

If I were you I would respond with a counter offer, that includes an amount down and monthly payments up to the amount they offered, conditional that they agree (in writing) to delete it from your reports once paid.

 

If they deny it, you can always accept the other offer.  

  8-12-14: FICO EXP: 797 - EQU: 734 - TRAN: 739 - AVG: 757 - +207 points from JUN 2008 - MY CREDIT JOURNAL

Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Big Baddie Settlement Offer


p- wrote:

If I were you I would respond with a counter offer, that includes an amount down and monthly payments up to the amount they offered, conditional that they agree (in writing) to delete it from your reports once paid.

 

If they deny it, you can always accept the other offer.  


+100000


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
New Member
lissmiss
Posts: 4
Registered: ‎10-23-2012
0

Re: Big Baddie Settlement Offer

Thank you all!! 

 

Is there any "magic number" when it comes to settlement payments? I'm trying to think of what ballpark figures I could send to them, that would be realistic, but less painful! 

 

Has anyone dealt with FCO before? I couldnt find to much info on any past success with them in the boards. 

Valued Contributor
madmann26
Posts: 1,424
Registered: ‎08-30-2012
0

Re: Big Baddie Settlement Offer

Counter with 50% and see what they say.

Starting Score: EQ 511 TU 552 EX 545 8/29/2012
Current Score: TU 705|EQ 690|EXP 698 (FICO)
What's in my wallet? Cap1 PLAT AU $1.25k; Cap1 Cash AU $2k; NFCU Siggy $23k; $4k WalMart DC; CFNA Firestone $2.2k; Amazon $2.1k; NFCU Cash Rewards $22K; AMEX BCE $18k; NavCheck $15k; Lowe's $10k; Citi DP $6.3k; AMEX ED $8.5k; Chase Freedom $4.5k
Goal Score: 700 across the board.
Take the FICO Fitness Challenge
My Journey
New Member
lissmiss
Posts: 4
Registered: ‎10-23-2012
0

Re: Big Baddie Settlement Offer

50% of their settlement, or 50% of the whole thing? 

Valued Contributor
madmann26
Posts: 1,424
Registered: ‎08-30-2012
0

Re: Big Baddie Settlement Offer

50% of the settlement. If you do 50% of the whole thing, that's 4k.

 

I expect they'll tell you to go pound sand or counter back.


Starting Score: EQ 511 TU 552 EX 545 8/29/2012
Current Score: TU 705|EQ 690|EXP 698 (FICO)
What's in my wallet? Cap1 PLAT AU $1.25k; Cap1 Cash AU $2k; NFCU Siggy $23k; $4k WalMart DC; CFNA Firestone $2.2k; Amazon $2.1k; NFCU Cash Rewards $22K; AMEX BCE $18k; NavCheck $15k; Lowe's $10k; Citi DP $6.3k; AMEX ED $8.5k; Chase Freedom $4.5k
Goal Score: 700 across the board.
Take the FICO Fitness Challenge
My Journey

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+