settlement letter

[cherlynn25]

I talked to the CA for our citifinancial cc debt today to make start some settlement talks. It was really uncomfortable. I think we both knew we were just playing the game. I hate that. Anyway, i was going to follow up with a letter that included the settlement agreement letter found on this site. My question is about the last paragraph:

AGREEMENT TO COMPROMISE DEBT

Citifinancial represented by drs Bonded Collection Services, referred to as CREDITOR and Jason ***, referred to as DEBTOR, agree to compromise the indebtedness as between them.

CREDITOR, hereby agrees to compromise the indebtedness due the CREDITOR on the following terms and conditions:

The CREDITOR and the DEBTOR agree that the present debt due is $4339.30 (four thousand three hundred thirty nine & 30/100 dollars). The parties agree that the CREDITOR shall accept the sum of $2200.00 (two thousand two hundred & no/100 dollars) as full payment on the debt. The acceptance of the payment will serve as a complete discharge of all monies due. The payment shall be made in cash.

In addition, upon accepting of the $2200.00, the CREDITOR will notify all Credit Reporting Agencies that account is PAID AS AGREED, and delete any entries showing this account as ever being late.

This compromise is expressly conditioned upon the payment being received by May 15, 2005. If the DEBTOR fails to pay the compromised amount by May 15, 2005, the original amount owed by the DEBTOR will be reinstated in full, and immediately due.

This Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns.

Dated: _______________

Signature: _________________________

Citifinancial represented by drs Bonded Collection Services

CREDITOR

Signature: _________________________

Jason *****

Debtor

The part about payment by may 15. if they do not respond back to me by then, what happens? should i just delete that paragraph? Also on the phone he offered me 2500 plus 300 in payments. i told him that wouldnt work for us. and he is to call me back tomorrow. in jan i got a letter from them with a settlement offer of 2169.65. So i am offering 2200. Should i also not put the paid as agreed and delete part? is that pushing it? i have the $ now. i want to get this out of the way. here is the letter i wanted to send with it.

April 25, 2005

drs Bonded Collection Services

PO Box 36155

Cincinnati, OH 45236-0155

Attention: Glenn Schaich

Re: account # ****

Glenn,

This letter is a follow up to our conversation on April 25, 2005 at 3:10pm CMT. I am enclosing a settlement offer agreement statement for you to sign and return to me as soon as possible. As soon as you return the agreement to me, Jason will sign the bottom and send a cashiers check in the full settlement amount to you via certified mail. Please call me with any questions or concerns at PHONE #. I appreciate your cooperation in this matter.

Sincerely,

Cheryl ***

sorry this is so long. please tell me of any changes that need to be made.

Thank you so much!!!

[DocDon]

A CA has to get authorization from the OC to enter into any agreement (they are contracted by the OC to help collect).

The CA could just as easily "agree" to 50% and then CITI will want the rest of their money...

Did CITI refuse to work with you on this?

[cherlynn25]

How do i know if citi sold the debt or not. They no longer send me any statements. it has been almost 2 years since a payment has been made. should i try to contact citi instead of dealing with CA?

thanks for the help

cheryl

[chincheck]

Three ways to find out if Citi sold it to a CA:

1) Check your credit reports. The tradeline will have an entry "CHARGE-OFF/SOLD TO ANOTHER LENDER"

2) Citi will tell you that they sold it to a CA if you call them. This isn't as reliable because they aren't required to give you that information.

3) DV the CA. Ask for copies of documents which give them collecting authority. Again, not overly reliable because CA's hate collecting papers for a debtor.

[cherlynn25]

thank you.

when i talked to ca the other day, made them an offer, they put me on hold for like 3 minutes and then came back with another offer. guy said he had to call the oc to see what the bottom line they would take was. i didnt believe him since it wasnt that long i was on hold.

if we do make an agreement, what do i need to get in writing? is there something that will assure me that the oc wont come after us for the balance?

thanks so much for all the help!