Possible PFD?

[razorsedgenwo]

My brother has owed on a bill for a long period of time. Its his debt. The creditor quit sending him letters. Last letter has been over a year. Last week a court officer showed up at his house with a paper saying he could take whatever amounted up to what was owed, including his car. The original debt was 4500.00. It has since accrued lots of fees and interest. The guy said they would settle for 5500. I would like some suggestions on how to move forward.  Its his debt and he wants to pay it. My concern is the credit report will show paid but delinquent on his report another 7 years. Can he bargain with the court on how its viewed on his report in exchange for payment? Any and all suggestions are welcome. Thank You all.

[llecs]

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@razorsedgenwo wrote:

My brother has owed on a bill for a long period of time. Its his debt. The creditor quit sending him letters. Last letter has been over a year. Last week a court officer showed up at his house with a paper saying he could take whatever amounted up to what was owed, including his car. The original debt was 4500.00. It has since accrued lots of fees and interest. The guy said they would settle for 5500. I would like some suggestions on how to move forward.  Its his debt and he wants to pay it. My concern is the credit report will show paid but delinquent on his report another 7 years. Can he bargain with the court on how its viewed on his report in exchange for payment? Any and all suggestions are welcome. Thank You all.

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Paying any debt will not restart the 7-yr reporting clock. Pay it or not, it'll still fall off as scheduled.

I would avoid the judgment though at all costs, because if the case goes forward and there's a judgment, then that judgment could report for 7 yrs. If I had that, I would send a PFD for $5500 since that is the figure the creditor offered. If they declined the PFD, I would pay off the $5500 prior to the court date. 

[RobertEG]

An officer of the court would not show up at your door and negotiate terms of settlement with you.

He was almost assuredly an agent of the creditor, not the court.

If a debt collector, he was required under the FDCPA to identify himself as such, and any representation that he was an officer of the court is a blatant violation of the FDCPA.

As a debt collector, the appearance was an initial communication with the consumer under FDCPA 809(a), thus additionaly triggering their requirement to send him timely dunning notice within 5 days. 

Something smells kinda like a debt collector subverting the FDCPA......