05-04-2012 02:35 PM
@llecs - I settled for $1296 less than the charged off amount, paying $5076 of a $6372 debt. Three more payments and I would have paid in full but I was not given that option.
05-04-2012 05:10 PM
How recently did the charge off happen and also what type of account is it?
05-04-2012 10:20 PM
Also, by law, if a collector says they are going to sue, then they have to sue. They aren't allowed to make empty threats. I didn't look at the balance paid (if posted) and money is always relative, but If I owed $15,000 as an example, and they offered to settle for $5000, then I'd rush and jump at the offer, duress or no duress.
Anytime with law there're always grey area.
"We will sue you if you don't do x" is certainly a threat and collection regulations say they should fully intend to sue if x is not met.
"We will pursue our legal options if you don't do x" is a statement of intent without a specific action. Their legal option could be more calls if so allowed.
"We have the option to sue you if you don't do x" is a notice that they have particular legal rights and is not a threat.
Finally, given the amount of money the OP listed, I would think it's reasonable they might have intended to actually sue him.
I just don't see why the OP is outraged. He OWED over $6000 and has legally satisfied his debt by paying less than $5000. The OC lost a lot of money. If I were an underwriter I would want to be aware of that by noting the collection account on the OP's credit report.
05-05-2012 12:00 AM
If they threatened to sue, then you should have called their bluff in my opinion. Since you have it resolved. I believe that you can get the mark removed after you have settled the matter, therefore you should see an increase in your score.
05-06-2012 01:50 PM - edited 05-06-2012 01:55 PM
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