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How to settle an account with a CA?


ataloss
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I have a Household Retail Services loan that has been bought by a CA. They are willing to settle this account for 80% of what I owed them. Is this about right? Also, they will not delete from my credit but only say that it has been paid. Before I give them any money since it's over $1,500, I want to make sure I make no mistakes.

Any suggestions or comments on steps I must take or things I might have not be thinking of? I don't want to pay all that money and end up in the same.

Thanks. :(

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Any suggestions or comments on steps I must take or things I might have not be thinking of? I don't want to pay all that money and end up in the same.

Hi and welcome to the board!!

Here's a suggestion....tell them to go piss up a rope! This is no good for you, a collection, paid or not, is ALWAYS derogatory. DO NOT SETTLE. They can remove, they just don't want to. Have you gone thru validation? Have you disputed? Have you filed complaints? You never start out with settlement, that's the last step.

Since you're new to this (I think) my absolute best advice to you is to wait and read up on stuff before doing anything. You really need to know the concepts and laws before dealing with this stuff. Jumping in before this is one of the biggest mistakes people in credit repair do...

Good luck and ask away as much as you want- people here are very helpful....:)

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Nope, haven't done anything except speak to them on the phone. They are supposed to get back to me on whether the creditor will approve the offer or not. If not I have to pay in full or so they say.

I settled one with one of my creditors, but they said the acct was in the legal stage and I was speaking to the legal dept. Was that not true? They were threatening to sue me. I paid them. :roll:

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Nope, haven't done anything except speak to them on the phone. They are supposed to get back to me on whether the creditor will approve the offer or not. If not I have to pay in full or so they say.

NO NO NO- NEVER SPEAK TO A CA ON THE PHONE......you do not have to pay in full, what you need is to stick around here and read and ask questions and start disputing, DV'ing, filing complaints etc to remove your derogatory information off your files. QUIT TALKING TO THEM ON THE PHONE, number 1 rule of credit repair.....

I settled one with one of my creditors, but they said the acct was in the legal stage and I was speaking to the legal dept. Was that not true? They were threatening to sue me. I paid them. :roll:

I don't know if it was true or not but settlement is not the first thing you should be doing because once you do, you have lost a lot of leverage and created recent activity on these accounts which will make it so much harder to have it removed. They will always threaten you with lawsuits etc, that's their tool, it's called intimidation and most people aren't aware of their rights so they will go ahead a pay. There's something called Statute of limitations (SOL) that you should read up on, it has to do with how long they have to sue you for the amount due- if the account you're referencing here had passed the SOL, you would have an absolute defense in court to have it dropped- should they actually sue you.

Like I said, you really need to read up on the board and the law. I understand you have a lot of questions but they're not specific enough to answer. Anytime you ask questions, the more detail you can give, the better advice you'll get!

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Ataloss. If you stick around long enough you'll find to the answers to all of your questions. The most importatn thing is patient and perserverance. This is a long journey that cna sometimes get frustrating but the end results are worth it. I would advise you to get copies of all three of your reports( you can get a free copy of your TU=transunion report) at www.worthknowing.com. Sit down and review all of the negative info come up with a game plan according to the info that is on this board. Trust me it will be the best investment you can make. I have been at this since May of this year and i am in the final stages. Good luck and God bless... :D Gumshoe.

Nothing sticks to me.....not even shaky credit!!

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I disagree with not paying the CA what you owe. Morally speaking, that creditor, in good faith loaned you money or gave your credit. Why are we all of a sudden feeling that it is OK not to pay what we truely owe?

I mean trying to clean up your credit and negotiate to get that CA to take it off your report is one thing but come on...we're not crooks ! We wouldn't be any different from the guy who cheated on his taxes or a DR. over charging medicare.

We promised to pay these debts a some point in the past...or to put it another way, would you tell your child that it is OK to buy something on credit and then if you can think of a way to get out of paying, Go For It!

Enough preaching...we all want this site to have a good reputation and working the system to improve your credit files is above board and hurts no one. Let's not go down that slippery slope to out and out dishonesty.

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If it is out of SOL and you can get it removed from all 3 reports then Go FOR IT!! :wink: If it is yours then try to settle for the smallest amount possible. Any thing else is uncivilized :wink: just kidding.

We all have morals but, if we can repair our credit without declaring BK and learn from previous mistakes or whatever then i do not see anything wrong with that.

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I realize your from North Carolina Gumshoe that alone speaks volumns...but try to remember that we all have opinions and having a differnt one from me doesn't make yours right.

If you would re-read my comments you would see that I have absolutely no problem with credit repair. It is the practice of deception to get out of paying what you owe that concerns me and no one should be recommending that to any newcomer. That decision needs to be made on a personal level with out your egotistical southern banter...

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Big credit companies practice deception all the time. Does Enron, WorldCom ring a bell?

There is NOTHING wrong with negotiating a settlement but do you want to pay $100 in Interest that is illegally put on your account?

Do you want to pay someone collection fees?

And hey lets say you settle for 50% of what you owe and the CA sells the other 50% of the debt that you THOUGHT you settled on to another CA and you end up having to pay them or they sue you for the balance??

It happens all the time!

You might owe the money but there is nothing wrong with using business tactics to lower the amount you have to pay.

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I realize your from North Carolina Gumshoe that alone speaks volumns...but try to remember that we all have opinions and having a differnt one from me doesn't make yours right.

If you would re-read my comments you would see that I have absolutely no problem with credit repair. It is the practice of deception to get out of paying what you owe that concerns me and no one should be recommending that to any newcomer. That decision needs to be made on a personal level with out your egotistical southern banter...

UMMM, I think that you should keep your 'low blow' comments to yourself! This is a friendly site and people can speak their opinion BUT WITHOUT CRUDE COMMENTS! Keep it to the point and PEACEFUL please!

No one is saying not to settle, just take some precautionary measures to protect yourself first. Debt validation is the first. Many times CA's add on fees which are illegal. So you want a full accounting of said debt! Also you want to get the neg info off your CR. There is nothing wrong with negotiating that and that is why we are here! :D

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ENVIRO..WHY THE NEGATIVE COMMENTS ABOUT MY HOME STATE? :cry: NORTH CAROLINA IS A GREAT PLACE TO LIVE AND VISIT. TRY IT SOME TIME. 2ND I WILL REFRAIN FROM STOOPING TO YOUR LEVEL OF LOW-BROW COMMENTS. MY RESPONSE WAS SINCERE AND NOT MEANT TO DISCREDIT WHAT YOU SAID. I DO NOT KNOW WHERE YOU ARE FROM BUT YOU NEED TO LOOK IN THE MIRROR AND ASK YOUR SELF IF I HAVE ISSUES WITH PEOPLE WHO ARE FROM NC DO I HAVE ISSUES WITH SOUTHERNERS OR FOR THAT MATTER PEOPLE OF COLOR......THINK ABOUT IT!!!! I HOPE GOD FORGIVES YOU AND YOUR RACISTS, ELITIST, NO GOOD SELF.

Cape-thanks for the sig.. I am still using it i just keep changing it every now and then.

SWEDE...CAN ENVIROTECH BE BANNED. THIS PERSON OBVIUOSLY HAS HATE ISSUES WITH ME AND THEY NEED TO BE ADDRESSED.

EVERYONE ELSE HAVE A GREAT WEEKEND.....EVEN YOU ENVIROTECH...ONE LAST ? WHY DO YOU DISLIKE NC OR SOUTHERNERS FOR THAT MATTER......

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Oh My...I just read all the posts :oops:

My intent is to pay, just wanted to know what is the average they will settle for, percentage wise. I just want to get the best deal out of it possible. Nothing wrong with paying the least amount possible :wink:, right?

Thanks to all the helpful comments and advice.

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Oh My...I just read all the posts :oops:

My intent is to pay, just wanted to know what is the average they will settle for, percentage wise. I just want to get the best deal out of it possible. Nothing wrong with paying the least amount possible :wink:, right?

Thanks to all the helpful comments and advice.

Don't let all that scare you off. No one here is telling you not to pay. We are telling you to be smart, know your rights, and in the end as you say, get the least amount possible to have to pay.

Hang in there and you will learn the right way to get your credit repaired.

Don't let anyone with a bad attitude or quotes of moral standards slow you down. You have the right under federal and state laws to make 100% sure this is your debt, and you are not being charged fees that are illegal.

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Nothing wrong with paying the least amount possible :wink:, right?

Well, actually there is.... at least at the stage you're at and if your goal is credit repair and this site is for credit repair.

I disagree with not paying the CA what you owe. Morally speaking, that creditor, in good faith loaned you money or gave your credit. Why are we all of a sudden feeling that it is OK not to pay what we truly owe?

You can disagree all you want but the bottom line is that you NEVER start out credit repair with settlement, once you've done this long enough you'll know why. First off, you don't owe the CA anything, perhaps the OC but not the CA. Second, how do you know what you truly owe to whom if they have no paperwork, no documentation showing that you are the person responsible? You mean to tell me that you're gonna pay every Tom, Dick and Harry that claims you owe them money just because they placed it on your reports??? Hell, if that's so, I'll go put on your report that you owe me $20,000 and I have no proof, are you still gonna pay me??

I mean trying to clean up your credit and negotiate to get that CA to take it off your report is one thing but come on...we're not crooks !

Did you not read what the OP just wrote???

They are willing to settle this account for 80% of what I owed them. Is this about right? Also, they will not delete from my credit but only say that it has been paid.

What do you suggest the solution is here…? Pay it anyways and have a paid collections or charge-off on your report?? What do you think that’s going to do for your score?? Nothing, absolutely nothing, paid or not, it’s still derogatory.

In a perfect world your argument may have made sense, however, I think we all know it’s not a perfect world. There are VERY FEW CA's/OC's that will work with you and delete derogatory information even if you pay. What we do here is not illegal, on the contrary. Congress has afforded consumers protection and rights but unfortunately, most people are not aware of them. That’s what we do here; we educate consumers of their rights and encourage them to exercise these rights. If a person wants to pay after everything is said and done- more power to them but it is absolutely detrimental to start out that way. This IS a credit repair site and if you don’t like it, I suggest you find another site to post at.

And for the record, I do not appreciate you calling people crooks. Like I said, what we do here is not illegal.

Enough preaching...we all want this site to have a good reputation and working the system to improve your credit files is above board and hurts no one. Let's not go down that slippery slope to out and out dishonesty.

This site has a good reputation- you seem to be missing the point that we’re not doing anything illegal or dishonest; we are simply exercising our rights. You seem to be the only one having a problem with it.

If a furnisher does not have the necessary information to prove who the person responsible for debt is, or refuses to follow the guidelines of the FCRA which CLEARLY states that information supplied must be ACCURATE and COMPLETE, then the information should not be on the person’s file.

I realize your from North Carolina Gumshoe that alone speaks volumns...but try to remember that we all have opinions and having a differnt one from me doesn't make yours right.

...

Not sure what this is supposed to mean but in no way was Gumshoe rude to you and had you read the “Please Read Before Posting”, you would see that personal attacks are not tolerated here. I'll make it real easy for you and paste the thread right here http://www.debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=3921

It is the practice of deception to get out of paying what you owe that concerns me and no one should be recommending that to any newcomer. That decision needs to be made on a personal level with out your egotistical southern banter...

Unfortunately it’s not up to you what will be communicated to newcomers or not. This is not your site and anyone doing credit repair longer than a week knows that by doing it your way, offering to pay right off the bat, you’ll be stuck with bad credit for the full 7 year. Again, this is a credit repair site.

SWEDE... THIS PERSON OBVIUOSLY HAS HATE ISSUES WITH ME AND THEY NEED TO BE ADDRESSED.

They just were ;) Lets just hope he/she changes her tune…

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I just spoke to the CA, I know I am not supposed to but I didnt' recognize the number on my phone. Anyways, now they are saying that the offer has expired and that they no longer will accept that amount. Just to make it clear because I think I might have confused myself...

Original Loan:$2200

CA Amount: $3100 (includes late fees and interest they said)

First Offer was:$2100 which was $100 of my original amount

After speaking to them the first time they said they would settle for $1700, and that they were trying to get me approved from the OC for $1500 as a settlement.

The lady I spoke to today said that they've had my account there for 95 days and that means that they will only have it there for another 30 days most likely. She said that once the OC would pull it from there it would probably go to another CA or even to an attorney's office.

I would think that means that the CA did not purchase the loan but are just assigned by HHR to collect which is why they couldn't offer removal from credit. They are not reporting, just trying to collect. However, looking at the letter the CA originally sent me the creditor shows as "Sherman Acquisition LP", not Household. That would mean that Household sold it to Sherman and Sherman assigned it to the CA I have been speaking to, right? :roll: I'm thinking maybe the smart thing to do would be to send the Validation leter to the CA and see what happens.

This is driving me insane...I'm so upset right now :cry: I dont' know what to do. And she really made me feel like I had no choice but to give her all my money! :shock:

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I just spoke to the CA, I know I am not supposed to but I didnt' recognize the number on my phone. Anyways, now they are saying that the offer has expired and that they no longer will accept that amount. Just to make it clear because I think I might have confused myself...

Original Loan:$2200

CA Amount: $3100 (includes late fees and interest they said)

First Offer was:$2100 which was $100 of my original amount

After speaking to them the first time they said they would settle for $1700, and that they were trying to get me approved from the OC for $1500 as a settlement.

The lady I spoke to today said that they've had my account there for 95 days and that means that they will only have it there for another 30 days most likely. She said that once the OC would pull it from there it would probably go to another CA or even to an attorney's office.

I'm so upset right now :cry: I dont' know what to do. And she really made me feel like I had no choice but to give her all my money! :shock:

Now, I have a question. When you send out a validation notice to the CA, if they cannot validate the account...what happens to that loan? I don't mean on my credit report but to the actual loan.

THey have to

a) stop collecting

B) get documentation from the OC as to the amount, status, ownership, etc. and send it to you before they can continue collecting.

Look, I know you're trying to get this all straightened out but until you do, STOP ANSWERING YOUR PHONE IF YOU DON"T RECOGNIZE THE NUMBER. If it's someone who really wants to talk to you for the sake of conversation and not an attempt to collect, they'll LEAVE A MESSAGE.

We keep telling you this because CA's will LIE LIE LIE LIE LIE to get money out of you. Everything this CA has said so far has been an attempt to SCARE YOU INTO PAYING. They work on commission and will tell you ANYTHING to get you to PAY.

GET IT IN WRITING.

Get the address for them, send them a validation letter with a LIMITED C&D included (contact you in writing only).

If they can't validate it, and they've only been assigned the loan, they will likely send it back to the OC who will then farm it out again.

How recently did you go delinquent on this loan?

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I for one, am so grateful for this site and all of the help. You have been an inspiration to me Gum and being from the south also (SC) :lol: I am actually very proud that you are from my area and have had the courage to attack the problem of the deceptive practices of a lot of CA's and made them prove theirselves. After all, even a criminal is innocent until proven guilty. Shouldn't the same be said about those who have incorrect or erroneous statements on their credit report? xbeer2)Here's to you gum!!!

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I'm in Florida. This was a Rooms to Go Furniture Loan which was using Household Bank at the time. We got this loan 7 years ago when we purchased our home and had made all payments until 2001 when job trouble began.

It seems that now Sherman Acquisition owns the loan and has assigned it to a CA. Now I have to worry about all the derrogatory from Household and Sherman. :? It's just gettting worse....

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