PFD w/ CA vs. OC?? Need Help!

Anonymous · ‎11-08-2010

I need help to better understand the relationship between the OC (Key Bank) and the CA (NCO Financial) that is currently contacting me with settlement offers. This is for 11 charged-off student loans.

To begin, the charge-offs are reported on my credit report as debts to Key Bank and there is no mention of NCO Financial. What is NCO's role in all of this? Do they "own" the loans or or they just simply handling the collection work for Key Bank?

NCO has recently started sending settlement offers for my 11 charged-off accounts. I would like to take advantage of the settlement offers and pay off these accounts, but I would also like to attempt a PFD. Therefore, I have the following questions:

1) How would a PFD with NCO work since Key Bank is the creditor listed on my credit reports?

2) Can I even get a PFD with NCO since they're listed nowhere on my credit reports?

3) Is there another strategy I should use in this situation?

Thanks!

Anonymous · ‎11-11-2010

Can anyone please help me understand this??

llecs · ‎11-11-2010

Hi, OP, I zapped it over here and maybe we'll get more responses.

I'm clueless on SLs and I'm sure there are finer points of SL that seperate it from other types of credit, but I'll response on that basis that this is like any other type of debt.

If Key Bank still reports balances, and NCO is collecting, then it could be that Key Bank assigned the debt to NCO for collection. In other words, NCO will do the bugging while any payments will go to Key Bank or forwarded to Key Bank.

Whenever you send a PFD, you send it to whomever is reporting. In this case, the PFD would go to Key Bank. NCO cannot accept a PFD on Key's behalf. What I would do is draft PFDs to Key Bank citing and probably including the copies of NCO's letters showing the settlement amount (Key approved the settlement amount in the first place). I would base the PFD on the settlement amount.

Anonymous · ‎02-02-2011

llecs - This is extremely helpful, thanks for your reply. At this point, I think I should just move forward and approach the SL as if it's like any other debt. I'll send the PFD to Key Bank!!