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Settled with Beneficial


reddhead
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My husband is in debt for $7900 with Beneficial. I knew it was a matter of time before they put a judgement against him.

I called them today, and told them we were on the brink of declaring Bk, we're not, but I didn't know what to say to get them to lower the amount he owed. I happen to speak to a very nice lady, and told her we didn't have alot of money, could she please work with me to settle the debt in full. She dropped the amount down to $6690.00, and said that is the best they can do, along with putting "settled in full" on my husband's CR. I know that Beneficial has their own lawyer's and CA's within the company. Being we own a home, I settled with them to avoid a judgement.

I read on the Credit info site that a person doesn't need anything in writing from the original creditors in order to accept a deal.

Well...I hope so. But just to play it safe, I'm sending a letter along with the payment about our agreement.

Does anyone have any advice or input as to what I can put in this letter to protect my husband? We live in NY.

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First of all, Beneficial will settle for 30%. If you plan on settling this account I would wait until you are approx 150-180 days delinquent and then settle since a settlement now as opposed to 150-180 days would be pretty much have the same impact on your credit.

When settling an account, you must always ask for a settlement propsal letter directly from the creditor. This is standard procedure.

Of course, this is only my opinion.

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Okay...asking then for a settlement letter is giving them the option to put whatever they want in the letter. Wouldn't it be better if I wrote it, and put things in the letter to protect my husband from being hounded by other collector's should this be sold or assigned by them?

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Let them write it and then tell them what you think is objectionable.

If their offer terms suck, don't accept them until you get what you need. That being said, have reasonable expectations on the terms.

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I have never had an account settled in my office where the remaining balance has ever needed to be paid. Yes, at times an account here and there slip through the cracks and is not noted as settled in full and goes to another collector or is sold. It happens but in my opinion it is a mistake. Instead of the account being noted as settled in full the settlement was posted to the account as a "payment". VERY CONVENIENT I must say. When this happens where a collector goes after a debtor for the remaining balance I simply send the settled in full letter which states "no further obligation", "settled in full" and the account gets closed. Of course, they all say "no thats not true this is not a settlement or the previous co. handling this account forwarded your account to us for further collection....basically, you will get the run around from whoever you talk to unless you get the right person on the phone and are intelligent enough to state your case. You must save the settlement proposal letter, your returned check or bank statement as proof of payment and of course, the CA or OC will send you a confirmation letter when the account is settled. With these doc's you will never have to worry about getting shafted.

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I hear what you're saying, but we live in NY state...and by law, if a CA or OC cashes a full payment check and explicitly retains his right to sue by writing "under protest" or "without prejudice" with his endorcement, then he can come after my husband for the balance. Those exact words must be used. If he writes, "without recourse" or writes on the check that it is partial payment, it is not enough to sue. This applies to NY state and a few other states. This is why, I am so afraid to let them write the settlement letter.

Wait a minute...I reread your post and you said I should always ask for a settlement proposal from the "creditor". The CA said they would send me a letter...is that still okay?

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