My first GW - Disaster

[Jane_Eyre]

Well, I'm not off to a very good start.  I sent my first goodwill letter a few weeks ago to an apartment complex I used to live in.  When I moved out, they claimed I never paid a damage deposit and charged me hundreds of dollars in fees.  I wrote them a goodwill and explained my situation and how I wasn't given credit for my deposit.  The deposit was $400 and they want me to pay $700.  I was hoping for a possible removal but instead I recieved a letter from an attorney today for the collection stating that I should call and set up a voluntary repayment plan.  Obviously I am scared they will sue for a judgement now if I don't pay.  What should I do?  I was thinking of seeing if they would settle for $300 which is the amount owed above the damage deposit I should have been given credit for.

If you settle for less than the full amount, can you still ask them to PFD?  I guess it would be worth it to pay $300 if they delete it from my records.  I can't afford the full $700 right now though so I'm pretty scared.  This is terrible timing as my job is about to get furloughed on top of it and I have to prepare for a 20% pay cut and am already scrambling to figure out how I'm going to get by the next few months.

Jane_Eyre

[guiness56]

How long ago was this?  Is it still within your states SOL?

[Jane_Eyre]

Oh, I should add that I now live in a different state from the apartment complex, but the debt is within the SOL of both Minnesota and California.  They would have to serve me in California though correct?  This would hopefully give me a leg to stand on while negotiating?

[Jane_Eyre]

The date of 1st deliquency is 05/2010 and it took place in Minnesota where the SOL is 6 years.  I now reside in California where the SOL is 4 years.

[Jane_Eyre]

Ok, using the example of a PFD on this site, I put this together.  I really need some advice about how to handle this!  Do you think I am offering too little?  It just makes me so mad to be expected to pay that damage deposit twice!  Would it be pushing it too far to add that I am willing to fight this is court if necessary? or will that just make them less likely to settle and delete?  PLEASE HELP!

March 1, 2013

Como Law Firm, P.A.
P.O. Box 130668
St. Paul, MN 55113

Re: Collection Account for _____ #: 55XX

Amount: $652.17

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.

I do not feel the charges brought against me are correct or legal.  In the spirit of compromise, I am willing to settle this account for $252.17 which is the amount above and beyond the damage deposit of $400.00 that I already paid to (Original Creditor), if you agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item 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 two hundred fifty two dollars and seventeen cents ($252.17) will be sent to Collection Agency 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.

Collection Agency 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, Collection Agency 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 explicity agreeing to the same terms as the above settlement offer and have it signed by an authorized representative of Collection Agency. 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:

Jane in CA

Sincerely yours,

Jane_Eyre

[starry1]

You can't GW something that isn't paid.  You should have done a pfd.

[DaBears]

That is a PFD letter.

[Jane_Eyre]

I tried to Goodwill because I felt that I was being charged unfairly and disagreed with the fees against me.  I am offering to PFD now, but is it too late?

[rckstrscott]

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@Jane_Eyre wrote:

I tried to Goodwill because I felt that I was being charged unfairly and disagreed with the fees against me.  I am offering to PFD now, but is it too late?

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Unfortunately, We cannot answer if it is too late.   Have you spoken to anyone on the phone? Have you spoken to the complex? People are so quick to write letters. Maybe you could plead your case to the property manager?

Keep in mind; just because you feel the fees are unjust doesn't always mean they won't have it in writing that they can charge those fees. I had the worst dealings in my life with apartment complexes.. Leases have so much crap in them, and usually they can get away with charging those fees that seems outragious afterwards because they were buried someplace in the lease.

You said you didn't get credit for the deposit. Do you have evidence of this? I mean aside from the fact you remember paying? Any receipts? Cancelled checks? If you don't have that, you are pretty much in trouble if this goes to court.

I don't like the letter at all. Your letter is way, way, way, way to full of demands or restrictions for a PFD -- you are attempting to amicably settle this debt, yet you are creating 100 stipulations for the CA, who has no obligation to do anything for you, to adhere to before granting your request. And usually, esp for current debt, they will not grant a PFD for under the full balance. I understand you don't believe you owe this full balance, but unless you can show otherwise, you are kind of at their mercy.

For the realtively small amount of debt (I understand its not small for you, but its small in general) they may or may not sue, but you always have the opportunity to pay it before it actually goes to court.

If I were you, I would just call them and find out the terms of the settling the debt before you make a decision. Maybe they will do 30 dollar a month payments or something?  It's a tough situation, I empathize. I just don't know how much success that PFD will get you. 

-scott

[Jane_Eyre]

Scott, thank you so much for your advice.  I just pulled this PFD off the sticky thread here and changed a few things and emailed it to the law firm.  I did also send a friendly and informal email to the management company offering to pay the same amount.  You are right though, I am at their mercy and I know it.  I DID pay that damage deposit, but unfortunately, this was the first apartment I had ever moved into and I did not save any proof of it all those years ago in 2001 when I moved in.  If they don't accept this offer, I guess i will have no other option but to make payments until it is paid in full.  I screwed this up in so many ways.. I should have never sent them a letter in the first place and "woken the sleeping giant." before the SOL was up.  I have a lot more reading to do to try to figure all this out it looks like 

Jane