Sending Settlement Letter...How Much Should I Offer?

[TitansFan]

I have an old credit card that I want to settle. The card was originally with Citibank. It is with Midland Credit Management now in San Diego, CA. The balance has grown to $5,768. On the back of the letter they sent today, it has a statement. The statement has Pricipal Balance $4,980, Interest Rate 19.99%, Accrued Interest $788.24 and New Balance $5,768. It looks like they are charging me interest!

Anyway, what should I offer them in settlement? I would like to keep it as low a possible. How does $1,500 sound? Too low? I have $2,000 available I can pay them, but I would like to keep it under that amount.

Please advise as to what I should offer them. Thanks!

[Guest]

No.. you send them a letter telling them that you dispute the amount and that they need to send you proof that you owe them a dime.

Citibank has sold this debt for probably pennies on the dollar. They have gotten all they thought your account was worth.

You should DV the Midland Bozos and see what they do. I would then.. IF THEY VALIDATE and ONLY IF THEY VALIDATE.. offer to settle for about 20 cents on the dollar.

They more than likely have nothing to prove that you owe them a dime.

Now thats just my 2 pennies.. so take it for what it is worth.

[DocDon]

Sky is right. Ask for the details:

Coppola v. Arrow Financial Services, 302CV577, 2002 WL 32173704(D.Conn., Oct. 29, 2002) – Information relating to the purchase of a bad debt is not proprietary or burdensome. Debtor must phrase their request clearly to obtain: The source of a debt and the amount a bad debt buyer paid for plaintiff’s debt, how amount sought was calculated, where in issue a list of reports to credit bureaus, and documents conferring authority on defendant to collect debt.