Rebuilding Your Credit

[lissmiss]

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!!!!

[madmann26]

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.

[lissmiss]

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!!  

[madmann26]

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

[p-]

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.  

[Shogun]

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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.  

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+100000

[lissmiss]

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. 

[madmann26]

Counter with 50% and see what they say.

[lissmiss]

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

[madmann26]

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.