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OC - What To Do With Demand Letter

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I posted this in the "debt settlement" section but didn't get any responses so I figured I'd post it here. Sorry for the cross post in advance if that's against the rules:

Trying to help out a friend of mine, but my limited knowledge is further limited to CAs, and not the OC. He has a demand letter for leased equipment/servicing contract for that equipment. The equipment is gone so no way to turn it in.

The letter indicates that "unless he makes arrangements with them to pay, a licensed process server, constable or sheriff in his area will serve a summons and complaint upon him." What to make of this?? Is this legal??

How can he respond to this...I know OC can't be made to validate, but what can he demand of them, what is sufficient from them and not, etc...

He could settle for roughly 1/2 of what they want (they allude to this in their letter also - "call to see if your eligible for 50% reduction"), if that's the only avenue available...recommendations for that? I know, obviously, it would have to include full deletion, not just a 0 balance. Anything else?


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Hi there!

I was sure I'd responded to your post, but perhaps I forgot to hit "submit" or something.

Well--for what it's worth I'll try to offer something. I do believe your friend has the right to at least request a copy of the original contract to see what it entails in the event that the leased equipment IS NOT returned. Unfortunately, if he signed it and if the equipment is not returned he probably can be held legally liable. One question is when did this occur or when did he make his last payment on the equipment?

My opinion (based on what you've said) is that it would be to his benefit to attempt a settlement with his OC. If they're going to offer him to settle for 50% he can attempt to request a full deletion, but that doesn't mean he will get it. You may want to copy off the settlement suggestions article from this site because it's really detailed as far as what to request first, second, etc.

Anyway--those are my thoughts, sorry if they aren't worth much but I figured I'd give it a whirl. I'm working on my own validation and settlement letters today to! :)


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Thanks for responding! The last payment on this was in 1999 so the SOL is for sure past in the state it was signed, and either is or almost is in the current residency state. So, I think we'll do a letter requesting copies of the contract, account history, and how they arrived at the figure they are asking for. That will kill some time in case it is a 5-year type contract for FL...(see the SOL section on this site).

If indeed it is past the SOL, then I'll advise to settle for a percentage for a deletion.

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