points to hit on in PFD

[Anonymous]

I am undertaking the difficult task of negotiating with Barclays to try and clean my stuff up.  Being that they are the largest source of negative information on my report, while also my biggest revolving debt, it behooves me to at least try this now that I have secured the money to PIF.

The specifics:

Apple Mastercard/Juniper Bank (Barclays): opened 2004

closed by Juniper 2006, never charged off or sent to collections

original 'loan' amount: $3000

current balance: $4232 (haven't paid since late September and am approaching my payment date for this month)

Derogatory:

90 days late Aug 2006

60 days late Feb 2006, Feb 2007

30 days late 10 different times from 2006-Jul 2010 (eek, and again now)

To date have paid: $3900 over 6 years

So, recommendations on points to stress in the letter?  Perhaps that I'm nearing bankruptcy or how much I've paid thus far in relation to the initial debt?  I'd like to write one from scratch unless this presents too many challenges in legal wording.  Lastly, might it be worthwhile to include a conditionally endorsed check?  I'm confused about which state laws govern these (I live in NY but the mailing address Barclays has for me is in California, which could of course be changed).

[llecs]

I would keep the PFD as is based on the examples in here. You wouldn't want to mistype or word in such a way whereby your SOL gets reset. IMO, keep it simple for the first several tries. I would not include a restrictive endorsed check. FYI, your state's laws apply to that check.

If after several attempts or repeated "No"s, then I'd PIF and then start GWing. BTW, your FICO score will go up when PIF.

[BrandonSS]

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@llecs wrote:

I would keep the PFD as is based on the examples in here. You wouldn't want to mistype or word in such a way whereby your SOL gets reset. IMO, keep it simple for the first several tries. I would not include a restrictive endorsed check. FYI, your state's laws apply to that check.

If after several attempts or repeated "No"s, then I'd PIF and then start GWing. BTW, your FICO score will go up when PIF.

---

How would one accidentally reset the SOL??? I'm no hesitant on attempting a PFD on a collection that is scheduled to fall off next year.    It's for a medical bill that I have no knowledge of... but it has been verified by online dispute.

[llecs]

YMMV based on state law, but if OP were to say something like "In the spirit of compromise, I'm willing to pay $x on my debt......" or something like that and if OP's state allows SOL to be reset with an admission of the debt, then SOL can be reset. Or if OP's state allows SOL to be reset with a written promise to pay, and OP's words are such that it appears like "I will pay $x" and if the condition that goes along with it is vague, then there could be an issue. It all depends on the state. Very likely, there will never be an issue, but you never can be to sure these days.

Of course my statement on SOL is predicated on the assumption that OP's SOL had not expired.

[RobertEG]

Here is what I see.

Account closed in 2006.

Prior to that, you had some periods of 30-day lates from 2004-2006.  How many and their specific dates, during the time are not speciied.

Then a 60-day late in 2/2006.

Then a 90-day late in 8/2006.

I presume that they then closed the account sometime between 9/2006 and 12/2006.

Once they closed the account, they can no longer report escalating or new further monthly account delinquencies.  So I suspect that what you are interpreting as additional monthly derogs after 2006 are merely account updates of last account status prior to its closing.

Your current balance is $4232.

Based on those facts, the very first thing I would do is try to establish two dates.  The first is the date of commencement of running of your state statute of limitations for legal action on their part, and the second date is your DOFD.  It looks to me like your DOFD, and also your date of commencement of running of your state SOL, is from the same date of approx. 1/2006. 

I think NY state SOL is based on DOFD plus five years, so legal action may be pending until after 1/2011, but youu need to check that out.  A PFD while withing SOL may just prompt legal action. 

Creit report drop offf dates, based on 7 years from the dates of each reported delinquency, will apparently remain under staggering dates from until after 1/2013 - 8/2013.

PFD offers must specify exactly what you want deleted, and must include payment sufficient to make them bite.  If you are still within SOL, and have multiple derogs being requested for deletion, then offering the full $4232 would have the best chance.  Offers for settement for less will be less favorably received.

Since you have said they they have not yet done a CO or referred to a debt collector, if you dont reach settlement with them now, your CR could become very nasty, and very soon.

[Anonymous]

thanks everyone.

Robert,

this is taken directly from Experian (within their online dispute website), where the account is described as follows:

Status: 

Closed.

Date Opened: 

11/2004

Date of Status: 

07/2008

Reported Since: 

11/2004

Last Reported Date: 

11/2010

Type: 

Revolving

Terms: 

N/A 

Monthly Payment: 

$149

Responsibility: 

Individual 

Credit Limit: 

$3,000

High Balance: 

$4,396 

Recent Balance: 

$4,231

Recent Payment: 

$0

Creditor's Statement: 

Account closed at credit grantor's request.

Account History: 

90 days past due as of Mar 2006 

60 days past due as of Feb 2007, Feb 2006 

30 days past due as of Jul 2010, Feb 2010, Nov 2008, Oct 2008, Aug 2007, Jul 2007, Mar 2007, Jan 2007, Nov 2006, Jan 2006

Does "Date of Status" refer directly to when the account was closed?  DOFD is clearly Jan 2006, so SOL is up pretty soon if in fact it's DOFD + 5 years.  With this in mind, I suppose I should I hurry up and update my mailing address to New York.

By now I know for certain that I will offer to PIF, since making a positive impact in the nearer term is more important than the settlement amount.  Thus, my initial offer needs to be the best blend of enticing to them and helpful to me, because I can't imagine having time for more than 2 offers/rejections before I simply PIF and hope it gets me over the hump in getting my student loan for the year.  Accordingly, I'm still wondering about the following:

Since I must specify exactly what I'm asking to be deleted, is there value in targeting a specific set of derogs in this case?  In other words, I assume that I could further maximize my chances of them accepting by asking for, say, 5 deletions rather than all 13.  And by honing in on the 90, two 60's, and both 30's from this year, there'd be a decent compromise between positive impact on my CS and chances of Barclays accepting the offer.  However if they're just as likely to delete 5 as they are wiping the slate clean (roughly the same amount of work for them either way, right?), then it would be silly to ask for less.   Correct me if I'm wrong about which specific derogs are the highest priority.

Thanks for your contributions.

Edit: I realize that asking for full deletion, in my case, would be all 13 late payments + listing account as PIF + Closed at consumers request.  That would be best case scenario.  How big of a priority are the latter two requests?

[Anonymous]

bumpidy bump