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Difficult debts to settle, need help...


jeajack21
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I have two accounts that I am looking to settle. Let me start with the first one. I am sorry for the long thread in advance.

I had a Visa account with a local Credit Union, that is listed on my CR's as Transferred to Recovery, Paid Charge Off, R9, with no balance owing.

Before finding this amazing site, I paid the collection company $300 (debt owing is approximately $713 now). After finding this site, I attempted to settle with the collection company wanting them to adjust the listing with the original creditor. They informed me that they were unable to do that and would take regular payments and not charge any interest. So, my next step was just to go to the Credit Union directly. I asked them to show me proof/validate and they did this. So I offered to settle. After much correspondence, the Loss Prevention Department sent me what appears to be a final letter. In this letter it repeating what I had asked for in exchange for payment, the debt to be changed to Paid as Agreed and to not report whether the account was late or not. The reply to this was, "this is notification that the Credit Union will in no way falsify account information in negotation for settling a debt. The Credit Union will only report accurate and valid information as per our contract agreement with the Credit Bureaus." They also said they were referring this to a Collection Company called Consolidated Services Inc. if I do not make full payment immediately. What should be my next step???

My second debt that I am having issues with is a Collection Company that I asked to validate, and they showed the sufficient proof and then asked them to settle twice, once for $375 (debt owing is $618.76 of principal plus interest totaling $792.22) and another time for $400. They replied back to with a letter stating "this debt remains unpaid and will remain listed with the local Credit Bureaus in accordance with federal law" and then asks for payment in full. What should my next step be with them also??

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I don't know how long they have been trying to collect, but I have found that the longer you hold out, the more will they are to negotiate a settlement. I actually just kept telling the CA that I was unable to pay due to hardship, etc. Eventually they got the clue and came back with a negotiation. With that, I said, well if I pay this, can you send me a letter removing this TL? The CA was happy to because they knew that the OC was still listed. Then I disputed the OC with the CRA and it was removed. This debt of mine was settled a couple of years ago with CA gone, and I just got the OC removed 1st round (but its 2 years since I settled).

Don't know for sure, but I would try to reach some kind of agreement with that first group to pay it and then dispute it out with the CRAs after that's done. Somebody else may have some experience with this though.

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<blockquote>Originally posted by jeajack21

I have two accounts that I am looking to settle. Let me start with the first one. I am sorry for the long thread in advance.

I had a Visa account with a local Credit Union, that is listed on my CR's as Transferred to Recovery, Paid Charge Off, R9, with no balance owing.

Before finding this amazing site, I paid the collection company $300 (debt owing is approximately $713 now). After finding this site, I attempted to settle with the collection company wanting them to adjust the listing with the original creditor. They informed me that they were unable to do that and would take regular payments and not charge any interest. So, my next step was just to go to the Credit Union directly. I asked them to show me proof/validate and they did this. So I offered to settle. After much correspondence, the Loss Prevention Department sent me what appears to be a final letter. In this letter it repeating what I had asked for in exchange for payment, the debt to be changed to Paid as Agreed and to not report whether the account was late or not. The reply to this was, "this is notification that the Credit Union will in no way falsify account information in negotation for settling a debt. The Credit Union will only report accurate and valid information as per our contract agreement with the Credit Bureaus." They also said they were referring this to a Collection Company called Consolidated Services Inc. if I do not make full payment immediately. What should be my next step???

- Okay, for the first. Have you disputed this directly at the CRA? Dispute not mine first...not because this isn't yours, but you are basically just wanting the OC to NOT respond, then it can be deleted. This is the first step. They may still be reporting electronically...you can find out on your CR when the last status update was to see for sure. Dispute it anyway at the CRA. Next, go to planetfeedback and write a letter saying you can't pay the full amount. You would like to try to make some kind of negotiations on this. This will give you a line of communication starting at the TOP of this company...not with some cust serv rep at the counter. Start with those and come back to us if you still need assistance.

My second debt that I am having issues with is a Collection Company that I asked to validate, and they showed the sufficient proof

- #1 - WHAT was sufficient proof?

and then asked them to settle twice, once for $375 (debt owing is $618.76 of principal plus interest totaling $792.22) and another time for $400. They replied back to with a letter stating "this debt remains unpaid and will remain listed with the local Credit Bureaus in accordance with federal law" and then asks for payment in full. What should my next step be with them also??

</blockquote>

-#2 Were these offers in writing? What did you put in the letters? And back to above...start with the CRA in disputing these as not mine. Don't worry about the debt right now unless you feel they are going to move to litigation or something. Start with the CRA, you may get lucky and get something removed. Also on this...if it comes to paying anything...try to pay the OC. Then you can go to the CRA and say this was paid at the OC and you don't know WHO this CA is! Don't try goodwill with any CA...but you may try PFB for the OC on this one as well. Try to get them to work out a deal. You have to be "pathetic". Things like "I have very little income, but have managed to save X amount of money. I can't come up with the whole amount, but am trying to get my life back together...This CA reporting is really hurting me and I don't want to renig on this, etc." If they say no deal, go to the other OC and try the same thing. Say I have these companies calling and I can only afford to pay one of you X amount of money. If you can't work something out, I will be forced to give my money to this other company because they will work it out with credit reporting.

KNOW the laws...KNOW your rights...READ as much as you can before making a step towards contacting these people again.

Hope this helps....and best of luck! Let us know if you have other questions as you proceed!!! :D

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