Received a collection letter from Northland Group today

[Anonymous]

Today I received a letter from Northland Group Inc. stating that a account from Cavalry Portfolio Services has been assigned to them for collection. The original creditor is HSBC Bank Nevada. The past due accout balance is $671.67 and they are offering a settlement of $335.82. I looked at my credit report and the DOFD is 03/2012.  I believe this debt is still within the SOL. I was looking for some advice on how I should try to handle this.  Thanks in advance for all the help.

[Anonymous]

If the debt is valid, the first thing I would do is call Calvary and confirm that Northland has the account. Also, I would NEVER agree to settle for less on a currently reported debt unless I had a written agreement that the account would be reported as paid in full and not paid/settled.

[RobertEG]

I assume debt collector 1 has reported, and debt collector 2 has now sent you dunning notice.

Personally, I would jump on the offer to settle with the condition that they not report to the CRA, period.

Debt collector 1 is now, based on the dunning notice from debt collector 2, obligated to delete their reporting based on the CRA policy of deletion once collection authority is terminated.  You then get all collectinos removed, and thus dont have the issue of reporting of paid for less.

[Anonymous]

That is correct. It was a dunning notice that I received from Creditor 2. So as far as Creditor 2 is concerned would I send them a letter agreeing to settle in exchage for it being wiped from my credit report? What if they refuse that offer? How do I handle Creditor 1 to make sure they are no longer reporting to the credit bureaus?  Thank you again for all the help.

[TroysMom1]

I'm wondering about this too.  I hope someone with some expertise can answer.

[RobertEG]

Yes, you can always make any payment offer contingent upon their agreement to delete any credit reporting (or not to report if they have not yet reported their collection).

However, it is common for debt collectors to refuse to make a PFD agreement.  Their credit reporting agreements with the CRAs include the standard CRA policy that they are not to delete in exchange for payment of a debt.

You will not know until you make the offer.  Some will make PFDs, others will not.

[TroysMom1]

I'm interested in how you resolved this matter.  How'd everything work out?