PFD Response

[hopeful5]

I sent a PFD letter to Asset Alliance / OC is PSE&G on 3/12/09.  Yesterday I got a letter from them saying they owned the debt and were looking forward to having me as a customer...what?  I asked that they agree to remove all records from CRA if I payed in full.  I guess that means they ignored my request.  My reaction is to send a second PFD letter and see what happens?

[Anonymous]

I had a similar reaction from Harvard Collection.  I sent a PFD stating I disputed the info but I was willing to pay it if they deleted.  They only pulled my credit and sent me a new bill.  Once I called them, the CSR was great.  I told her I would expedite payment if they deleted from my reports for full payment.  She agreed.  She sent me a letter via fax agreeing to such.  Once they received the payment.  I received another letter stating that the account was closed and considered to be fully satisfied.  They have notified Ex,TU, Eq to delete from my reports which could take 30-90 days. RJM was willing to accept 50% settlement and PFD.

Just stay on them with a PFD, they work.   

[Anonymous]

Have you DV'd? Is this beyond SOL?

I would either send a DV(if beyond SOL or you can PIF) or send another PFD if you wish.

[poet]

Isn't a PFD for less than the original amount putting you at risk--that is, can't they sue you later for the rest of the old balance? That's my understanding; please correct me if this is wrong.

poet

[llecs]

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@poet wrote:

Isn't a PFD for less than the original amount putting you at risk--that is, can't they sue you later for the rest of the old balance? That's my understanding; please correct me if this is wrong.

poet

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You can offer, in your PFD, any amount equal to or less than the amount that is claimed as owed. Now, more you offer, the better the odds are of getting the PFD accepted.

As in the PFD agreement, the OC/CA are accepting your settlement offer if you offer and pay less. They can't sue you because they settled. Now they can send a 1099-C on the differential, but they can't come back later and claim you owe it because they agreed to the PFD in writing before you paid.

[poet]

Thanks. I'd like to settle an old account but don't have enough cash to PIF it. Can PIF two small ones, though. Writing the letters today.

Paying in full is a huge adrenaline rush!

poet

[llecs]

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@poet wrote:

Thanks. I'd like to settle an old account but don't have enough cash to PIF it.

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Just make sure you have the $$$ to PIF (if you had to) or wait until SOL expires before doing anything. Some OCs/CAs, like CapOne, have been known to reject a PFD and sue for the full amount instead.

[Anonymous]

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@poet wrote:

Isn't a PFD for less than the original amount putting you at risk--that is, can't they sue you later for the rest of the old balance? That's my understanding; please correct me if this is wrong.

poet

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This is why you always -- always -- demand a General Release when you settle an account.

[IMPROVELIFE]

  06  What is a general release?  How would one go about requesting this when asking for a PFD?

[Anonymous]

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@IMPROVELIFE wrote:

  06  What is a general release?  How would one go about requesting this when asking for a PFD?

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A General Release is a legal document that acknowledges something such as a payment as total satisfaction of the debt and releases you from any and all further liability.  You can Google and find one that you can download.

Generally I would have them sign the document upon presentation of payment with good funds.  In your case, you may have to just send it to them along with a cashier's check or money order and ask them to sign it and return it to you.  Since there is always the possibility that they will not, make sure in any PFD offer that the amount eventually accepted is in complete and full satisfaction of the debt and by accepting payment they release you from any further liability.  A restricted endorsement referencing this on the check you send them is also a good idea if you believe they will not live up to their end of the bargain.