topic Citi just offered us a 75% settlement offer in Rebuilding Your Credit

Citi just offered us a 75% settlement offer

Anonymous — Tue, 24 Jan 2012 20:44:43 GMT

Citi just offered us a 75% settlement offer and we declined. I know we should be greatful for that but I have a feeling they could offer better so we are going to wait it out and see. What usually happens when you decline a settlement offer? Will they send other offers?

Re: Citi just offered us a 75% settlement offer

SoulMaster — Tue, 24 Jan 2012 21:40:42 GMT

I usually recommend coming back w/ a negotiation rather than a flat out decline... but it's up to you. You should be able to settle Citi between 25% and 50%, unless you're judgement proof, then you can get it alot lower.

-SM

Re: Citi just offered us a 75% settlement offer

Anonymous — Tue, 24 Jan 2012 21:44:48 GMT

Well I told the lady that we are not able to pay that much and she did not offer anything more. I guess we will see what happens. I am sending emails now asking for a settlement and seeing what they offer.

Re: Citi just offered us a 75% settlement offer

RobertEG — Tue, 24 Jan 2012 22:09:19 GMT

Your position regarding the payment or non-payment of a debt depends upon whether the debt is still legally collectible.

You need to consider their options as well as yours.

If the statute of limitations has not expired, they can sue for the full amount.

Is the debt still under SOL?

I, also, would have counter-offered if still under SOL. You could offer a payment plan rather than a full settlement now.

Re: Citi just offered us a 75% settlement offer

Chrisla2077 — Wed, 25 Jan 2012 00:10:33 GMT

I agree with everyone else...as someone who has been sued...counter-offer, or as RobertEG, says get a settlement pay-plan if its in SOL

Re: Citi just offered us a 75% settlement offer

pizzadude — Wed, 25 Jan 2012 00:43:46 GMT

You should also consider the credit reporting impact of this. If at all possible you should attempt to negociate favorable reporting/removal of lates/deletion.

Re: Citi just offered us a 75% settlement offer

Anonymous — Wed, 25 Jan 2012 00:52:09 GMT

I am still within the SOL. I went into it knowing that I may have to pay the full amount and I am prepared to do so if I have to. I declined in hopes that I can get a better offer and I am pretty confident that I may. I just sent out emails today and will hopefully hear something soon. Either way I will be paying it within the next month or so because we are trying to buy a home. I can't do the payment plan that they offered if I want to buy a home. She did not say anything about the offer expiring etc so I am pretty sure that worst case secenario I will be paying 75% within the next few weeks or so. I don't know if I can get a better offer without asking and trying so I am taking the chance. SOL is up in June.

Re: Citi just offered us a 75% settlement offer

AndySoCal — Wed, 25 Jan 2012 05:30:14 GMT

What is the curent status of the account? ie current, delinquent or collection or charge off

Re: Citi just offered us a 75% settlement offer

SoulMaster — Wed, 25 Jan 2012 07:17:50 GMT

With bill collectors you literally have to tell them what you want. If you want 25%, but they offer 75% and you said "I can't pay that much". They will LITERALLY write in their notes: We offered a settlement and debtor refused to pay.

If you don't want to wait until June to see if they sue you, call them and offer 25% (make them send you a letter of settlement in writing with the new terms). They won't take 25%, but they'll probably counter.

If I was a collection co/ attorney, I'd file the suit on the very last day of the SOL, especially if I knew how to contact you. In fact, I've seen this happen to plenty of people.

In other words, what we all seem to be saying here is that you have to/should counter offer, and the words you posted that you used didn't actually do what you thought they did (you didn't counter yet, you just said no). So call 'em up and give it a whirl!

Good luck,

-SM

Re: Citi just offered us a 75% settlement offer

Anonymous — Wed, 25 Jan 2012 07:49:54 GMT

Thank you for the advice. I will not be waiting until June. I am going to wait on a couple of responses from these emails and if they are not what I am looking for I will then be calling back to counter offer.

Re: Citi just offered us a 75% settlement offer

mtrsprt — Wed, 25 Jan 2012 13:29:05 GMT

They will accept 55%. Any less is wishful thinking.

Re: Citi just offered us a 75% settlement offer

Anonymous — Wed, 25 Jan 2012 16:02:14 GMT

55% would make me happy : ) Thanks for all the advice.

Re: Citi just offered us a 75% settlement offer

Chrisla2077 — Wed, 25 Jan 2012 16:35:54 GMT

Speaking of SOLs .....I live in Maryland where the SOL is 3 years....would this be the beginning of the month following the DOFD?