Paying off collections question

Shock · ‎01-15-2015

So I'm helping my girlfriend rebuild her credit. As it stands now, I believe she has 3 collections on her credit report. We havent had time to take a lookat it specifically, but one is from a Wells Fargo CC, and a couple from cell phone bills. All are under 1k. There may also be a couple medical but I'm not sure at the very moment.

Now, the plan is to settle with them, and also have to remove it from her credit report, essentially Pay For Delete, but not paying the full amount.

At what threshold is it deemed an acceptable amount to where they would agree to settle? For example...30%? 40%? 50%?

If the collection was 1k, would they be willing to settle for 300? 400? 500? I know the goal is to pay as little as possible, but would like so advice regarding this first.

Thank you in advance, First time poster here in the rebuilding forum, but long time uer of myFico! Thanks!

Anonymous · ‎01-15-2015

Your negotiating stance depends on whether its past SOL in your state or not. Outside of SOL gives you great leverage to get collectors (not OC's) to PFD for reduced amounts - I'd personally offer no more than 20% if beyond SOL.

If inside SOL its advised to tread cautiously, and make no offers if you are not able to pay in full if necessary to avoid being sued.

xautodetail · ‎01-15-2015

NormanFH you can explain to me what the terminal of SOL pls thank

gdale6 · ‎01-15-2015

@xautodetail wrote:
NormanFH you can explain to me what the terminal of SOL pls thank

SOL refers to the time limits set by each state that a creditor has to sue and get a successful judgment. The SOL is different in every state and different types of debt has different time limits. SOL is always determined by the DoFD of an account just like CRTP is.

Shock · ‎01-15-2015

Sorry, I'm new to the rebuilding forum.. Although I've rebuilt mines from the ground up. What does SOL and CRTP stand for?

gdale6 · ‎01-15-2015

@Shock wrote:
Sorry, I'm new to the rebuilding forum.. Although I've rebuilt mines from the ground up. What does SOL and CRTP stand for?

SOL - Statute of Limitations on this forum it refers to laws a state sets for creditors to use the court system to enforce payment

CRTP - Credit Reporting Time Period refers to time allocated by FCRA for negatives to remain on file

Anonymous · ‎01-15-2015

Norman you have really had success offering that much on debts past sol? So BOA would potentially take 400 or less if I sent a PDF letter? On a 2000 dollar debt?

Imperfectfuture · ‎01-15-2015

@Anonymous wrote:
Your negotiating stance depends on whether its past SOL in your state or not. Outside of SOL gives you great leverage to get collectors (not OC's) to PFD for reduced amounts - I'd personally offer no more than 20% if beyond SOL.

If inside SOL its advised to tread cautiously, and make no offers if you are not able to pay in full if necessary to avoid being sued.

Very much this. All my medical debts in SOL needed to be satisfied in full (one way or another). Including collection fees. But I got everything cleared up, even with fall off dates in 2019. Be careful with cell phone collectors, you need the promise to delete in writing. They are notorious for promising and not allowing. Also, with cell phones and utilities, the OC's will promise to pull from collections if you pay, but hardly ever do. Just an FYI.

Signature needs updating

Anonymous · ‎01-15-2015

@Imperfectfuture wrote:
@Anonymous wrote:
Your negotiating stance depends on whether its past SOL in your state or not. Outside of SOL gives you great leverage to get collectors (not OC's) to PFD for reduced amounts - I'd personally offer no more than 20% if beyond SOL.

If inside SOL its advised to tread cautiously, and make no offers if you are not able to pay in full if necessary to avoid being sued.
Very much this. All my medical debts in SOL needed to be satisfied in full (one way or another). Including collection fees. But I got everything cleared up, even with fall off dates in 2019. Be careful with cell phone collectors, you need the promise to delete in writing. They are notorious for promising and not allowing. Also, with cell phones and utilities, the OC's will promise to pull from collections if you pay, but hardly ever do. Just an FYI.

So you can't settle medical debts for less even if past the SOL?

Anonymous · ‎01-16-2015

@gdale6 wrote:
@xautodetail wrote:
NormanFH you can explain to me what the terminal of SOL pls thank
SOL refers to the time limits set by each state that a creditor has to sue and get a successful judgment. The SOL is different in every state and different types of debt has different time limits. SOL is always determined by the DoFD of an account just like CRTP is.

Texas is an exception - in Texas the SOL clock starts at the last payment date, rather than the default date.