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Need a sanity check on this release offer


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Quick timeline recap:

8/27 - I pull all 3 reports and find a baddie on one of them from a CA I've never heard from. I immediately fire off a letter suggesting they remove it from my report or risk liability. The alleged debt is 1+ years beyond the SOL for my state. Most recent update on the report is 7/03 and claimed balance is $3700+

9/12 - CA fires back a demand for payment listing the original claim of $3K and showing added interest and charges of $3400 pushing the total to over $7k. Magically in two months time from their last CRA update the amount has climbed to this ridiculous amount.

Shortly after I shoot back a version of the whychat letter that is a combo of C&D/validation/restating it's beyond SOL and pointing out that by Calif law their continued collection efforts without validation could be viewed as extortion.

A couple of days ago got a certified letter from them stating their were putting the account in dispute in THEIR system(but not with the CRA according to my checks) and were requesting from the OC the documention to validate but since it was really old it would take some time to retrieve from archive, thanking me for my patience, blah, blah.

The very next day I get another certified letter which is actually dated the same day as the one above that says they have rec'd the information from the OC, they stated the open date, my SSN, length of the history, there were no disputes on the account, blah, blah, but no actual copies of anything to validate. Just their word in a letter. Their closing point is to state they feel they are in full compliance with the FCRA and FDCPA. Based on the 3 violations I have documented so far, I obviously disagree with this statement.

Included with the letter is the following Release which they did not sign but want me to:

"For the mutual consideration, receipt and sufficiency of which is hereby acknowledged, Goofball CA hereby releases and forever discharges any and all claims demands, causes or suits in regards to account number xxxxxx of Goofball CA also known as OC account number xxxxxx. Further, Goofball CA agrees not to transfer, convey or sell the account to any entity for purposes of collection.

Furthermore, Goofball CA agrees, that upon receipt of this signed MUTUAL RELEASE, to remove all trade lines being reported by submission of a Approved Universal Data Form to the appropriate CRAs. Goofball CA further agrees that no additional entries or inquiries will be made with regards to the alleged account.

Wronged Consumer and Goofball CA warrant and represent to each other that neither has made any assignment of transfer of any right, claim, demand or cause of action that either may have or had that is covered by this RELEASE and that each is the sole and absolute legal and equitable owner thereof. Both parties hereto warrant and represent that each has all necessary capacity and authority to execute, deliver and perform in accordance with the terms of this MUTUAL RELEASE.

The undersigned parties hereby declare that the terms of this settlement have been completely read and are fully understood and voluntarily accepted for the purpose of making a full and final compromise adjustment and settlement of any and all claims of the matter above mentioned and for the express purpose of precluding forever and further claims by either party arising out of the aforesaid matter."

A few words in there I'm not sure of, but mostly it looks like they want me to let them off the hook because they know they F'd up. The garbage about them offering a half baked validation in the cover letter and then stating they feel they are in compliance is just more of the same in this matter, IMO.

Opinions? Comments?

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Upon further review, I was mistaken. The Release they have sent was actually dated the day before the earlier letter that says they have requested validation from the OC.

IOW, on 9/22 they said they have rec'd validation from the OC, stated the "headlines", but didn't send me any copies as proof, then included a release form they want me to sign in exchange for removing it from the CRA.

On 9/23 they printed a letter saying that they were going to ask for validation, mark it as disputed in THEIR system and get back to me when they had something.

This is reaching comical porportions. Maybe moving forward with small claims makes sense?

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Thanks calawyer. Was hoping you could find time in your busy schedule to chime in.

I'll draft a letter today. I earlier mentioned the extortion angle based on Calif law which may have got their attention. I'll add fraud to the list after these most recent letters, send copies of them to make it clear and include "For settlement purposes only".

Hopefully covering my butt all around.

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I have a recent denial, but it was based on a different CRA report where this TL isn't listed.

I think the best I could do there is work the less favorable interest interest angle because I am actively talking to mortgage brokers in the last 30 days. Not sure I want to mention mortgage to the CA though for fear of giving them leverage.

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