Should I Accept the Settlement Offer??

[jaresent]

I need some advice ASAP.

I have a charged-off credit card account with Providian (opened 10-1998) for the amount of $1220.00. They have reported the account as charged off on my CRA every month from 07-1999 until 06-2003. They report “N/A” in Recent Balance/Recent Payment column of the report.

My CRA also shows that a CA (Acceptance) has been reporting the charged-off account as a collection account beginning in 07-2003 and again on 06-2004. The collection balance reported is 900.00. I recently received a settlement offer from Acceptance. The letter states that they will settle the account for 450.00 as long as if I pay within 15 days. They also will provide “a paid account letter and close the account.”

I want to resolve this situation for the better of my credit report. I live in Georgia where the SOL is 5 years for a open-ended account. The seven-year reporting standard for the original account will be meet in 11-2005. Which of the following do you recommend?

1). Pay the CA the settlement amount and accept their credit listing offer, or

2). Refuse settlement with the CA and attempt to settle with the original creditor, or

3). Wait out the 7-year CRA reporting standard then dispute the listing if it continues to appear on my CR?

Thank you for your help

[retmar]

First off, if I understand you right, with your mention of Acceptance as the CA, I can only assume you are referring to A$$et Acceptance. If this is true, they are a JDB, who have purchased this debt for pennies on the dollar. They are one of the top 10 worst in the nation. This also means that Providian has no further connection to the debt and will not accept payment from you.

Also, according to your noting the date the OC began reporting as a CO, and if 7/99 is the true date, then this debt is timebarred. They have no legal recourse to the debt. True, A$$et will claim that since they now own the debt, they are not bound by the FDCPA, but, that is BS. The original date of delinquency will never change.

Do not accept their offer in any fashion. You will create a letter that clearly states you are fully aware the debt is timebarred and they have no legal recourse. You will also state that in some states, it is a violation to even attempt collection of a timebarred debt. Check your own State to see if it applies there for backup. Therefore, they must close, delete, and go eat Maggot Droppings, or be sued under FDCPA 807(2)(A), for beginners. Send it CMRR and once you have your signed green card back, dispute it with the CRA's. Most times they do not respond and it will be deleted. No guarantee, but, it has worked for many in the past, including me. As to the OC, since it is close, just let it go unless you have upcomings plans. If there are plans, then you would attack the different info reported, such as does the TL show a Zero balance with the transferred or sold notation? Are the amounts right? Are the dates?

And, yes, if you do wish to pay this, simply because you want to, then you will respond that the only way you will agree to the offer is for a total deletion of all TL's. Since I am totally against this particular JDB, they don't deserve to be paid anything , no matter what. What you would include in your response is the verbiage that you are aware the debt is timebarred, etc. but, as a good faith gesture, you will agree to pay the offer. Include that if your offer is not accepted, you will sever all further communications with them and they receive nothing.

[LadynRed]

The SOL on credit card debts in GA is FOUR years, not 5, so add another year onto how DEAD this debt is. Do as Retmar suggested, send them a cease and desist letter telling them to pound sand, the debt is time-barred. GA law does NOT prevent collection action on a time-barred debt.

Be aware that ASSet will try to pull some crap to extend the life of the debt, you must be prepared to squash them like the stinkbugs they are.

[buffy-2u]

I have a question that is kinda related...I also have Asset Acceptance that bought my Providian charge off, and it is almost 7 years now, but since I can't really remember the date of deliquency....I haven't disputed using the 7 yr defense. The debt was incurred in NV, but I now live in California. Which SOL and timebarred laws would apply? I think it is illegal to try to collect on a timebarred debt in CA, and is reporting to the CRA's considered collection attempts?

Any help with this would be appreciated? I have several TL's (mine and DH's) that are with Asset Accept.

Thanks!

[buffy-2u]

bump

[jaresent]

I will take your advice. I was not sure what was best to do. I hope to buy my first home near the end of the year so I am working to better my credit. Currently, I only have a small amount of money to do this with, but I was willing to pay the collection fee just to get the matter settled. I am glad I asked here first. If I were to pay anyone, I would prefer to pay the OC but since as you said, they don't own the account anymore, I cannot do that.

I know that this process may take a few months to handle but I am already excited.

Thanks for all the responses.

[Champion80]

RETMAR!!! WHO LET THE DOGS OUT !! WHOOT WHOOT

Great post Retmar, that was inspirational. Just wanted to say that.

To add a little about paying for the deletions, IF YOU DO , although Retmar thinks you shouldn't, make sure you offer pennies on the $$ and make sure you have the letters on hand before payment, and you either post it here or get a lawyer to review it so you know you will be protected from the JDA (Junk Debt A$$holes).

The only reason you would really want to pay any of those debts now anyway would be because you plan on doing something that requires a lot better credit very soon, and/or all other methods, DV's, disputes, ITS letters get no bacon.