Pressler & Pressler..What should be my next step????

[Anonymous]

I posted a few weeks ago regarding this horrible collection agency by the name of Pressler and Pressler (just do a search to hear the horror stories about this agency). So I sent a certified letter for them to validate the debt of an old Salute Visa card.  They validated with an old statement from 2006 showing my transactions. Now that it's validated, do I make payment arrangements or offer a settlement amount?  The credit card was only $200 and now their asking for $850!! Any advice would be greatly appreciated dealing with this issue and this horrible collection agency.  Thanks in advance.

[IOBA]

In my opinion, if you offer a settlement amount, it needs to be at least as much as the original debt and no less than 30-35% of the collection debt.

If  you ask them to settle, be prepared to have the money in the bank to pay them in full (settlement amount) right away.   Be prepared to explain where the money will come from.

When you ask them to settle, tell them you need a letter mailed to you or faxed to you that specifically says, "The debt will be considered paid in full.  No other money is owed."  Or something to that effect.

If you choose to make payments, figure out ahead of time how much you can afford to comfortably pay per month.  If you get paid every two weeks, set up payments for every two weeks.

Decide how you will pay them.  Will it be online, on their website?  Will it be an automatic debit from your account?  Will you mail them a certified check or money order every two weeks?

It's been awhile since I helped my family member settle a debt.   The person was too chicken scared to talk to the creditor, so I did it for him, with him right beside me.  I explained to the creditor that our mom was willing to loan the money, but she wouldn't do it unless she had a letter from the creditor that said it would pay the debt off in full.  Mom also wanted the information to wire the money into their account.  The amount she was willing to loan was X amount -- period.   There was no negotiating -- period.  Either the creditor accepted it or received nothing.  No letter, no money.  

The end result was receiving a letter from the creditor to show mom that paying X amount would settle the debt in full.   Once the letter was received, the money was wired to the creditor.  Went online, printed out a screen shot showing it paid off/zero balance.  Called the creditor, asked for a letter that stated the debt was paid in full.  Received it.  Done deal.

Not quite --- watched the credit report.  Sneaky bozo's decided to report it as a charge off and collections.  With two letters in hand, called them back and called them on their "mistake in reporting".  They did "Correct" the reporting to be paid in full, settled for lesser amount.  AND they sent a letter stating that they corrected their mistake.

Either way, which ever way you choose, plan a little before calling them.

[Anonymous]

IOBA, wonderful information! I will be using your tactic and having a letter sent confirming my conversation to settle for X amount. I will be making my phone call on Monday and assist on a letter before any money is received. I'll be wiring the money or sending a money order since this company is very sneaky regarding going into bank accounts without prior permission :-/...Thanks a bunch!!!!

[IOBA]

No problem!

You might want to consider having a mom who will "loan" you the money to pay the debt.     If you mail the payment, send it CMRR.  Might seem like overkill, but you know how hard it is to follow up to see if a money order or cashiers check has been cashed?  Or to prove that they DID receive payment?  That little green card says a lot!

Let us know how things go!

[Anonymous]

Yes. My mother will be "loaning" me the money. I will make sure to get it Certified Mail RR. You're right about the money order. I'll either wire the money or pay with a credit card. I'm sure those methods will be much easier to trace if need be in the future. You rock, thanks for the advice.

[RobertEG]

Debt collectors have two primary means of pressuring for payment of debt.

Years ago, their primary means was the threat of legal action  However, with the advent in the past decade of consumer access to their own credit reports, the debt collectors began to rely more and more upon credit reporting as their primary debt collection measure.  They know tht CR deletion is now one of the most powerful settlement motivators.

Having said that, the very first thing I would suggest is to determine whether tactic one is still available to them.  Stated succinctly, is the debt still within your state SOL, or has that option now passed.

Then, it depends upon the importance of earlier deletion from yiur CR prior to the normal 7 1/2 years from DOFD on the OC account.  Having lost the threat of legal action, then acceptance by them of a PFD offer will be more enticing.

What is the DOFD on the OC account (and thus its normal fall-off date, should you do nothing)?  How important is earlier CR deletion to you?  Do you need it for new credit application prior to its date of death due to its own old age?  If you PIF or settle for less than the full amount, neither of those result in CR deletion, and wont help your FICO score.  But, of course the debt collector wont tell you that, and may even dishonestly imply that payment results in deletion.  The higher your PFD offer, then of course the better chance that they will lunge at it, with the benefit to you of earlier CR deletion.

It is a personal game of priorities.  There is no single "you should do this" recommendation.

The debt collector probably has four major considerations:

1.Can we sue and win?  Is the debt still within SOL?

2. When was the DOFD on the OC account, and thus when do we lose continued credit report inclusion as an incentive?

3. How much is the debt?

4.  What is corporate debt collector policy on even entertaining a PFD?  Some wont even consider it.