Need advice on how to handle a settlement offer

[Relique]

I have a 6 year old debt to HSBC that has been sold to LVNV. I tried to PFD this last year but they refused. The balance that LVNV has on my report is $882.42, and the original amount was around $330. This debt has an expired SOL and is due to fall off at the end of 2014.

Just received a settlement offer from AlliedInterstate. They are offering to settle for a one time payment of $176.48. The wording of the letter concerns me because it doesn't state the balance will be considered paid in full or that they will cease collections on the remaining balance. The fact that it's not even from the debt holder is worrisome. 

Was wondering if the wise folks here can inforn me how to best handle this situation. Should I just pay? Call and ask for a paper stating that the balance will be considered paid and full and will be reported as so? etc..

Also is HSBC good with GW letters, and if so anyone can help me out with some contact information.

Here is the wording from the letter they sent me:

Dear XXX:

LVNV Funding LLC has given us authority to settle your account for less than the total amount due. We have been authorized to accept one single payment in the amount of 176.48 as settlement on the Amount Due listed above.

The rest of the letter states a deadline and instructions on how to pay. etc..

[Pilotdude]

My opinion:

Counteroffer but include:

1. No acknowledgement of the validity of the debt.

2. The amount is for FULL payoff and nothing more shall be pursued by them at anytime in the future.

3. Payment of the agreed amount of (SPELL IT OUT) shall include immediate DELETION from your credit files in any and all Credit Bureaus within 14 days of receipt of payment.

4. No further attempts will be made to collect any further monies in connection with this debt, ever.

The debt is 6 years old, ooutside the SOL and will be dropping anyway in about a year.  Ball is in your court, not theirs.  If you don't pay, they can't sue because of the SOL and a year is not very long.

You can probably still apply for other credit and use backdoor numbers to explain your past credit transgression is a one time deal and a lesson you certainly learned from long long ago, etc etc. 

Definitely do nothing by telephone with them.  You can't prove what they say and most collectors know this and will promise you the moon over the phone.

Get it all in writing to your liking, before paying.

They can accept a settlement offer which stipulates you will pay by x date an amount (spelled out) and that they will be giving you the following :

Item #1

Item #2

Item #3

etc etc. 

Only after they have signed the agreement and you have a suitable copy of it, should you send payment.

Hope that helps

[Relique]

That helps alot. However, is it realistic to expect them to accept 20 percent of the debt for full settlement and delete from reports? From what I hear LVNV is not good with PFDs let alone something like this. I know there is a 3rd party involved so that might change things. 

[guiness56]

You can always counter-offer with a bit higher amount for a deletion from all CRAs.

[Relique]

Really appreciate all the help. Do I need to reference the fact that this is a counteroffer to their settlement? Here is the letter I put together from reading other ones. Does this cover all my bases or does anything need to be changed? Thank you

Allied Interstate LLC
4000 Corporate Exchange Dr, 5th Floor
Columbus, OH 43231

Re: Collection Account for Original Account #: xxx
Allied Interstate Account #: xxx

To Whom It May Concern:

This letter is not acknowledgement of the validity or liability of the debt. I am willing to offer a payment of $300 provided that you explicitly agree to each and every point listed as follows:

1. You accept a payment of $300 as full satisfaction of the debt.
2. You agree to permanently cease any and all attempts to collect on this account, either directly, through another debt collector, or by selling the debt.
3. You agree not to discuss the terms of this settlement with anyone, excluding your client on this account
4. You agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion.)
5. This agreement is legally binding upon both parties.

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 Collection Agency.

Upon receipt of this agreement, you will be promptly sent a certified check in the amount of $300 for full settlement of the account.

Your response must be postmarked no later than 30 days from your receipt of this settlement offer or this settlement 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:

XXX

[guiness56]

Personally, I wouldn't send that letter.  Too many demands being made.  It could just make them angry and want the full amount.

Additionally, if you already received a dunning letter and never asked for DV, they don't have to at this point. 

Please accept $300 for settlement of the debt as paid in full and deletion from all three CRAs.  Or something to that affect.

[chasmith]

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@Relique wrote:

Really appreciate all the help. Do I need to reference the fact that this is a counteroffer to their settlement? Here is the letter I put together from reading other ones. Does this cover all my bases or does anything need to be changed? Thank you

Allied Interstate LLC
4000 Corporate Exchange Dr, 5th Floor
Columbus, OH 43231

Re: Collection Account for Original Account #: xxx
Allied Interstate Account #: xxx

To Whom It May Concern:

This letter is not acknowledgement of the validity or liability of the debt. I am willing to offer a payment of $300 provided that you explicitly agree to each and every point listed as follows:

1. You accept a payment of $300 as full satisfaction of the debt.
2. You agree to permanently cease any and all attempts to collect on this account, either directly, through another debt collector, or by selling the debt.
3. You agree not to discuss the terms of this settlement with anyone, excluding your client on this account
4. You agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion.)
5. This agreement is legally binding upon both parties.

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 Collection Agency.

Upon receipt of this agreement, you will be promptly sent a certified check in the amount of $300 for full settlement of the account.

Your response must be postmarked no later than 30 days from your receipt of this settlement offer or this settlement 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:

XXX

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If this JDB is being difficult about deleting, you could try the following:

3. You agree not to discuss the terms of this settlement with anyone, excluding your client, but specifically including any and all credit reporting agencies.
4. You agree that should you make any further communication , other than requesting deletion, from any credit reporting agency you will pay $300.00 per violation as liquidated damages.

[Relique]

Ok as per the advice here I revised it not to sound demanding. After all I owe the money and I really do want to pay them.

To Whom It May Concern:

I have received a settlement offer from you for the aforementioned account on February 8th, 2013. This letter is not acknowledgement of the validity or liability of the debt. However, I would like to ask you to please accept a payment of $300 in exchange for full satisfaction of the debtand deletion from all credit reporting agencies (Equifax, Experian and TransUnion.)

If you agree to this offer, please send me a signed letter agreeing to those terms. Upon receipt I will send you a certified check for $300.

Please address all correspondence regarding this account to:

XXX

Thank you for your consideration

[guiness56]

Much better.  And all they can say is no.

[Relique]

Thank you very much guinness. You helped me in all my threads and I really appreciate it. Will send it Monday and hope they accept.