Help with PFD

[Anonymous]

Hello all,

I posted this in the Understanding FICO Scoring section of the board as a follow up to my original question, but wanted to repost here as it seemed more appropriate.  I sent a PFD letter to Continetal Finance for an account that was written off in June of 2009.  In the letter I stated that I was willing to pay $300 (which was the original balance) of the $646 owed on the account.  I received a response stating that the account was charged off and to contact the CA (RiverWalk collection agency) that the account was sold to.  As of today, there are no TLs on my CRs from RiverWalk.  My understanding is that if an OC has sold my debt to a CA, my CRs should show I have a zero balance with the OC.  Looking at my CRs; I do show a zero balance with the OC on EQ, but have a balance of $646 owed on TU and EX.  Since I still have a balance reported with two of the CRAs, should I contact the OC again with another PFD?  If this is the case, do you recommend me offering the full amount due for a greater chance of approval?  If the debt was truly sold to a CA and I need to contact them, should I send a DV prior to a PFD?

Thank you for your advice and input,

[bigman023]

I would first dispute the balance on the two CRs.  If they update the balance to $0, fine.  If they don't, I would hit the OC with a 623 dispute letter, basically asking them to internally investigate the situation.  For the CA, I normally wouldn't contact them until I received a Dunning letter from them.  But if you have the cash to PIF, it may be in your interest to PIF or negotiate a settlement.  But I would get in writing that they agree, to not report the account to the CRA's.

Message Edited by bigman023 on 02-21-2010 06:44 AM

[Anonymous]

I contacted and spoke to about four different people from the OC (Continental Finance), all stated my account was charged off in June of 2009 and I would have to work with RiverWalk. Holdings. Did some research on this company, it appears they are a JDB based out of Texas that do not report to the bureaus. I would like to resolve this debt before it gets transferred to someone who does report. I am hoping someone can provide some guidance on how to handle this. I am assuming now that I should not send a PFD letter since they are not reporting to the CRAs. Should I send a DV letter and then negotiate a settlement after they respond? Also, would I use a standard DV letter? I would request in writing that the debt is satisfied and that the account will not be sold, transferred, or reported before I sent them any settlement payment. Please let me know if this is the course of action that I should take. BTW, I filed a dispute with the two CRAs that show I still have a balance with the OC (should be zero I believe) since the account was charged off. Thank you,

[LIGHTNIN]

IMHO, since this was CO less then a year ago, I doubt they will settle less then the full amount.You are still within your SOL, and you dont want

them to answer your request with a summons to go to court. 

You are correct.....the sentence in blue. I would modify a PFD letter, and change it to a Pay for Not Reporting.Dont pay them, until you have in your 

hand, a written agreement from the CA. Look over the agreement word for word, and make sure thats what you agree to, then you can pay the CA.

As always keep copies of everything, just in case you need them later. Oh i forgot, make sure you have all the money first, before doing anything. 

---

@Anonymous wrote:
I contacted and spoke to about four different people from the OC (Continental Finance), all stated my account was charged off in June of 2009 and I would have to work with RiverWalk. Holdings. Did some research on this company, it appears they are a JDB based out of Texas that do not report to the bureaus. I would like to resolve this debt before it gets transferred to someone who does report. I am hoping someone can provide some guidance on how to handle this. I am assuming now that I should not send a PFD letter since they are not reporting to the CRAs. Should I send a DV letter and then negotiate a settlement after they respond? Also, would I use a standard DV letter? I would request in writing that the debt is satisfied and that the account will not be sold, transferred, or reported before I sent them any settlement payment. Please let me know if this is the course of action that I should take. BTW, I filed a dispute with the two CRAs that show I still have a balance with the OC (should be zero I believe) since the account was charged off. Thank you,

---

[RobertEG]

I have no firm answer to your questions, just some observations.

If the OC has told you that the debt has been sold to a CA, there is probabably nothing to be gained by any more contact with, and certainly payment offers, to them, for they dont own the debt.  While they should have updated to $0 balance with all three CRAs, I dont think this is a big deal at this time.  The CO they posted is affecting your CR with each CRA the same, regardless of the balance they are reporting.   You may want to GW the OC at some point in the future to remove the CO, so bothering them again may not be a good idea.

You dont have to wait for dunning notice from the CA before you DV them, but you also dont want to get involved with them until you have to.  All a DV letter will esstentially do for you now is to require them to cease further, active collection activity until such time as they respond.

There is, of course,nothing to ask the CA to PFD.  You offer a pay in exchange for an agreement not to report, but that is only a conditiional offer.

If you offer less than the full amount, that is also a conditional offer.

If you offer a full PIF, the debt is satisfied, and thus no credit reporting or legal action.  I would consider a PIF.

[Anonymous]

Thanks for the input, I figured that I would have to PIF to resolve the debt.  Below is the "Pay for Not Reporting" letter that I will be sending them.  Please let me know if you have any suggestions.

02/23/2010

Name 

Riverwalk Holdings Ltd.

1132 Glade Road

Colleyville, TX 76034 

Re: XXXXXXXXXXXXXXXX 

To Whom It May Concern: 

This letter is not to be construed as an acknowledgment of my liability for this debt in any form, but rather an attempt to amicably settle the balance owed on the following account: XXXXXXXXXXXXXXXX The total amount owed on the account is $XXXXX. I will pay your company the full amount of $XXXXX as complete settlement of this account, provided that you explicitly agree to each and every point listed as follows: 

1. Riverwalk Holdings Ltd. agrees to accept payment of $XXXXX as an agreed full and final settlement of all outstanding charges and fees on Account XXXXXXXXXXXXXXXX 

2. Riverwalk Holdings Ltd. agrees to permanently cease any and all attempts to collect on Account XXXXXXXXXXXXXXXX.  

3. Riverwalk Holdings Ltd. agrees not to sell the debts owed on Account XXXXXXXXXXXXXXXX to any third party, since Riverwalk Holdings Ltd. would recognize the account as being paid in full.  

4. Riverwalk Holdings Ltd. agrees not to discuss or report Account XXXXXXXXXXXXXXXX with any third party, including:   

a. All credit reporting agencies including, but not limited to, Equifax, Experian, and TransUnion, AND 

b. All collection agencies 

5. This agreement is binding upon both parties.  

If you agree to points 1 through 5 listed in this settlement offer, please prepare a letter on your company letterhead explicitly agreeing to the same terms and have an individual authorized to make such agreements on behalf of Riverwalk Holdings Ltd. sign and return the letter to the return address listed at the bottom of this page. Upon receipt of the agreement, I will promptly send you a certified check in the amount of $XXXXX. The individual who signs on behalf of Riverwalk Holdings Ltd. must have express authority to make such agreements binding upon Riverwalk Holdings Ltd. or the agreement is void.  

I look forward to resolving this matter in the best interests of both parties. I think this is a fair offer, and it is entirely within the rights and legal obligations of both parties to do this.  

Thank you very much for your time in this matter, and I will await your response.  

Sincerely,  

Name 

Notice: This agreement is restricted to the terms stated herein. This is not a renewed promise to pay, but rather a restricted settlement offer only. Failure to respond within 30 days of the date of this letter will terminate this settlement offer.  

The agreement may be sent to the following address: 

Name

Address

[RobertEG]

I offer my honest advice.  You letter is not the approach I would take.

I would just send them an unconditional PIF, and end it.

Your propsed letter tells them two things.  First, your fear of their future ability to simply report the collection to a CRA is a major concern of yours.  And second, you are willing to pay.  Your offer is conditional, so they can just refuse it, report to the CRAs and then leave you wqith an additinal CA derog on your CR, and only with a feeble PFD request to remove it.

To ask a CA to unilaterally agree before the fact, not to avail itself of its legal rights to collect a legitimate debt,and then to express terms of how, and when, they must abrogate their rights, with no money yet in their pocket, wont engender much love.

IMHO, I would just do a payment in full.  If they accept it, which is the most probable of outcomes, the debt is discharged, and there is no remaining debt to be collected.  It is the safest route.

Setting demands on a CA in a condtional letter that may or may not even promise full payment is not the approach that I would take.

Message Edited by RobertEG on 02-24-2010 01:27 AM

Message Edited by RobertEG on 02-24-2010 01:39 AM

[Anonymous]

You bring up some good points Robert, thanks for the input.  I decided to contact the CA and paid the account in full.  I received a letter from them stating that the debt was satisfied and that they would not report the account to the CRAs.

Thanks again