topic Got a 30% settlement letter, now what? in Rebuilding Your Credit

Got a 30% settlement letter, now what?

Anonymous — Wed, 23 Sep 2009 18:33:29 GMT

The OC still has the account and is reporting every month to the 3 credit bureaus. OC has hired a CA to collect, CA is not reporting.

Now, CA sent me a letter for 30% settlement. Very good offer but I will also like to negotiate my credit status. What's the best way to do this? I wiant to ask for the removal of the negative tradeline and the change of status to "Closed account - Paid as agreed". WIll it be to much?

I will be willing to pay a little more (maybe 50%) than the 30% settlement offer in order to fix my credit status. Should I include that in a counteroffer?

They know that I am unemployed at this moment.

Thanks in advance for your advice!

Re: Got a 30% settlement letter, now what?

Anonymous — Thu, 24 Sep 2009 21:41:21 GMT

Still not sure about this. Should I just settle and forget about negotiating my credit status?

Re: Got a 30% settlement letter, now what?

RobertEG — Fri, 25 Sep 2009 04:09:04 GMT

Settling with the CA will forstall future lawsuit, but wont help your credit score. You need to obtain a pay for delete (PFD) agreement with the CA prior to paying. The higher the amount you offer, the better the chance they will bite.

Re: Got a 30% settlement letter, now what?

Anonymous — Fri, 25 Sep 2009 08:11:05 GMT

The CA is not reporting so a PFD would not apply and will not remove the OC account. See if the OC will accept payment and recall the account from the CA.

Re: Got a 30% settlement letter, now what?

Anonymous — Fri, 25 Sep 2009 08:30:42 GMT

I am trying to understand this clearly. Did you say that the CA is offering you a 30% settlement letter and you want to negotiate a settlement of 50%? Hold your horses.IMHO i would sent a DV to the CA if the CA is holding your account. I would not communicate with this or any CA on the phone. I write a letter requesting validation of this alleged debt.Sent the letter CMRRR. Do not contact CRB's at this time. Wait 30 days before you do any thing.Once you receive a response from the CA you then have (30) days to plan your stragetic action. Good luck,may all blessing be with you!

Re: Got a 30% settlement letter, now what?

Anonymous — Fri, 25 Sep 2009 19:53:28 GMT

Guiness56: The CA is not reporting so a PFD would not apply and will not remove the OC account. See if the OC will accept payment and recall the account from the CA.

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What if the OC don't want to recall the account from the CA?

If so, should I deal with the CA and negotiate that they talk to the OC to remove the "charged-off" status to "Closed - Paid as agreed" or "Paid"? If they accept, this will be the best case scenario. I am trying to do EVERYTHING to have the "charged-off" status removed. I will be willing to PAY IN FULL instead of the settlement they have offered me ONLY if they remove the "charged off" status. I guess I should start by sending them a letter accepting their 30% settlement offer ONLY if they agree to remove the "charged-off" status to "Closed - Paid as agreed". Then wait. Now, if they refuse, should I send then another letter with a settlement offer of 50% plus my requirement of credit status? Not sure how to negotiate. I just don;t want them to know that I can pay in full and have them denied my resquest to change my account status to "Closed account - Paid as agreed". Please help!

Re: Got a 30% settlement letter, now what?

Anonymous — Sat, 26 Sep 2009 06:48:07 GMT

So, I decided that I will call the Original Creditor (CITI Bank) and tell them that I am willing to PAY IN FULL once they take back the account from collection AND if they are willing to negotiate my account status to be changed to "Closed - Paid as agreed".

If I can't get to a deal with the OC and get asked to deal with the Collection Agency that represents them, I will then send the Collection agency a reply to their 30% settlement offer where I will only agree to settle if the Collection agency gets the Original creditor to change the status of the account to a more positive status than "charged off".

If all this doesn't work, well, I will agree with their settlement offer of 30% and forget about this debt forever!! This will cost me a "paid charged off" account status with the Original Creditor and 7.5 years on my report.

The Collection Agency is not reporting at all. Only the Original Creditor is.

So, what do you guys think?

Anyone in the same situation out there? Anyone with any positive outcome? Is this possible?

Thanks to all!

Re: Got a 30% settlement letter, now what?

Anonymous — Sun, 27 Sep 2009 14:31:34 GMT

Monina,

When was the DoFD for this account? Has the SOL expired?

Re: Got a 30% settlement letter, now what?

Anonymous — Tue, 29 Sep 2009 02:58:48 GMT

So, I called the Original Creditor today and asked if they could get the account out of collection. I told them that I was willing to pay the full amount if they did that. Their answer: "No, we cannot do that. Please contact X Collection at xxx-xxx-xxxx".

Okay, so I cannot negotiate with the OC even though they still own the account.

Now, I have a settlement letter of 30% that was sent to me a week ago by collection agency that represents the OC.

Now that I know that the OC is out of the pic, I am going to have to go the CA route.

Tomorrow, I will write a letter accepting their settlement only if they get the OC to change the status to "Closed - Paid as agreed".... (This will be the best case scenario)....

If they do not accept my request, then I will try to negotiate a status of "Paid"

I've read that when statirng the negotiations, you should not forget to negotiate your credit rating.

Any one out there thatwas in the same situation and negotiated their credit rating? Any positive outcome?

Re: Got a 30% settlement letter, now what?

Anonymous — Tue, 29 Sep 2009 03:01:17 GMT

By the way, I am still within the SOL.

Re: Got a 30% settlement letter, now what?

llecs — Tue, 29 Sep 2009 18:25:42 GMT

Monina wrote:
So, I called the Original Creditor today and asked if they could get the account out of collection. I told them that I was willing to pay the full amount if they did that. Their answer: "No, we cannot do that. Please contact X Collection at xxx-xxx-xxxx".

Okay, so I cannot negotiate with the OC even though they still own the account.

Be persistent. Don't take "no" for an answer but be very friendly and courteous.

I had an unpaid debt with Verizon Wireless. They were reporting as an unpaid CO and had assigned various CAs to try to collect. Fast forward to finding myFICO. I wanted this CO off and too had called the OC. They said that they can no longer help and that I needed to call so-and-so. They even offered to transfer me to the CA. I called back several times and even spoke with a supervisor and they all had the same script. I even told them that I'd like to PIF.

So, I restrategized and tried to use a poor-me excuse. I told them that under the Fair Debt Collections Practices Act I had sent a DV letter asking for their balance and other information. Under federal law, I told them, the CA isn't allowed to contact me or write me until they provide that info. In other words, Mr. OC, I want to take care of this debt but the CA can't talk to me or consider my request at this time. But you can. I would like to pay you in full, Mr. OC, in exchange for a deletion. I'm caught between a CA that won't help and you. Will you help me?

I used the above and got through to the CSRs each and every time. Got to know them well too. Of course they turned me down everytime (up through the PFD acceptance via planetfeedback), but at least I didn't have to deal with a CA, other than to keep sending DVs.

Re: Got a 30% settlement letter, now what?

Anonymous — Fri, 02 Oct 2009 16:25:27 GMT

Thanks for your input llecs! This is a very good strategy!

I will try that, hopefully it helps. =)

Re: Got a 30% settlement letter, now what?

Anonymous — Wed, 28 Oct 2009 06:53:43 GMT

So, here I am again... I am still trying to get the OC to accept payments even if they have assigned it to a CA. It's been almost a month and no luck. Last time the CA send me a letter, they offered me a 30% settlement. I have not contacted them at all. Now I just got another settlement offer from the CA for 15%. Still not sure if I should just pay the settlement and just take the "Charged off - settled" with the OC.

The CA still not reporting, only the OC is reporting.

The most important thing for me is to negotiate my credit rating. I would like to have the OC change the status of the account from "Charged off" to "Closed - Paid as agreed". I am willing to pay in full for this.

Should I settle with the CA at 15% and request that they have the OC change the status of the account to "Closed - Paid as agreed"? What are the chances for them to accept that? If they don't, should I offer them more money and so on?

Any opinions?

Thanks in advance!

Re: Got a 30% settlement letter, now what?

llecs — Wed, 28 Oct 2009 11:20:17 GMT

I personally wouldn't work with the CA at all, and would continue a daily pursuit to get a PFD with the OC. I'd call them very frequently and remind them that you are willing to PIF in exchange to have it deleted. Send also PFD letters to them. Try also sending the letters to the CEO/pres. of the company. Try sending them through planetfeedback too. Don't give up. When calling, if they say "no" to the PFD request, use the next couple of minutes to pick at their brain. Mention to them that the CA can't deal with you directly without violating the FDCPA (if you sent a DV) and that's why you are calling them (the OC). Ask them the following:

1) Since you own the debt, what happens if the CA cannot collect?

2) When and at what point would you assign a new CA?

3) How many CAs would you assign before selling the debt?

4) Has your company ever accepted PFD agreements in the past? (BTW, search here and elsewhere. If there is one PFD success story, then yours could be next).

5) ALWAYS end with this: Is there anyone I can talk to or anything I can do to get you to accept a PFD arrangement w/ a payment in full?

Always thank them for their time and conclude. Be friendly. Talk with a smile. Shoot the breeze with them about weather or sports or whatever based on where their call center is in the beginning of the dialog to break the ice.

Re: Got a 30% settlement letter, now what?

Anonymous — Thu, 29 Oct 2009 16:23:01 GMT

Thanks llecs! I will try and try and try!

Re: Got a 30% settlement letter, now what?

Anonymous — Tue, 09 Feb 2010 20:40:32 GMT

Hi,

I know this post was from last year but I am wondering how you made out?

I am in a similar situation same OC not sure which CA you dealt with?

By any chance ar you in NY? I believe paid CO are removed at the 5 years past DOFD rather than 7.

I would love to know how you resolved this and if you have any advise