Asset Recovery Solutions Collections help

[OpenBook55]

Hey Everyone,

I am looking for some general advice in how to possibly handle this collection notice received. I received a letter for a personal loan that was c/o on my report December 2023. It shows c/o with $0 on my reports with the original creditor ONLY . No longer updating. I have no collection on my report and I would personally like to get ahead of this before that happens.  I have been receiving letters from an Asset Recovery  stating the current creditor is Velocity Investments and they  would like to settle the debt for 50%. which would be a little over 3k. I personally cannot afford to settle at 3k but can at 2k. Currently unemployed and only willing to part with 2k of my savings at this time. My questions are:

1) Do you think they will accept a 2k offer for a debt that's under 1 yr old considering they offered  3k?

2) How will this update to my credit report. (I would ask them. for a pay for non submission)

3) Would it benefit me to settle, will I Iose points if I settle and they update the original account on my report as paid for less/settlement . And eventually will my score recover say within 6 months as the new status ages?

4) Is it best to avoid communication with Asset and only try settling with the original creditor.

5) Knowing im within SOL for my state  is it too risky to attempt the wait it out option?

Has anyone have experiece with this collection agency. Also can someone break down what does it necessarily mean that I'm receiving communication from Asset Recovery but it says the current creditor is Velocity. Did velocity buy this from OC and now has contracted Asset to resolve?

I really would like some advice from anyone skilled in these areas. Thank you.

[FireMedic1]

If it has a $0 balance showing. They sold it to Asset Recovery. You could call and explain your unemployment situation and offer the 2000. They may accept it or deny it. Since it hasnt reported yet. Call before they do place it on your file. Since the CO has a $0 balance already. No gain from that point-wise. No longer counting against your util %'s. Just dont say anything about I know I owe this debt. I'd like to settle. Good Luck!

[IamWesty12]

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@OpenBook55 wrote:

Hey Everyone,

I am looking for some general advice in how to possibly handle this collection notice received. I received a letter for a personal loan that was c/o on my report December 2023. It shows c/o with $0 on my reports with the original creditor ONLY . No longer updating. I have no collection on my report and I would personally like to get ahead of this before that happens.  I have been receiving letters from an Asset Recovery  stating the current creditor is Velocity Investments and they  would like to settle the debt for 50%. which would be a little over 3k. I personally cannot afford to settle at 3k but can at 2k. Currently unemployed and only willing to part with 2k of my savings at this time. My questions are:

1) Do you think they will accept a 2k offer for a debt that's under 1 yr old considering they offered  3k?

2) How will this update to my credit report. (I would ask them. for a pay for non submission)

3) Would it benefit me to settle, will I Iose points if I settle and they update the original account on my report as paid for less/settlement . And eventually will my score recover say within 6 months as the new status ages?

4) Is it best to avoid communication with Asset and only try settling with the original creditor.

5) Knowing im within SOL for my state  is it too risky to attempt the wait it out option?

Has anyone have experiece with this collection agency. Also can someone break down what does it necessarily mean that I'm receiving communication from Asset Recovery but it says the current creditor is Velocity. Did velocity buy this from OC and now has contracted Asset to resolve?

I really would like some advice from anyone skilled in these areas. Thank you.

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@OpenBook55  just for clarity, did you mean on your CR Dec 2022 instead of Dec 2023?

[daveg38]

I agree with @FireMedic1 and would like to add that any collection account that new should first be fully validated THEN negotiated. 

Once you decide to settle, you should take that $2000 and start at $1500, working your way up to your ceiling of $2000 if they are playing hardball.

[OpenBook55]

thank you to everyone for the feedback.I havent made any moves on it yet becasue life been doing alot  but will address this very soon and will hopefully be able to update you all with my outcome- good or bad.