Should I counter the CA's offer?

[KnowledgeWithin]

I am sure there is a post somewhere on the forum about this, but I've searched and searched and cannot find a related topic, so please bare with me.

I have a collection for an apartment rental in California from 2004. I skipped my last rent payment as I relocated from Cali to LA. They took the $995 deposit and once it was all said and done managed to rack up charges that amount to another full month's rent ($1300). Long story short, its been a collection since August 05. Did DV etc., and they sent all the docs related to the $1300 including the bill for attorney's fee to file an unlawful detainer in court for default which was granted. Since October 06 I have been sending settlement offers to the CA with no response. I have been requesting to settle for 25% of the actual $1300 debt. A week ago (March 12, 2007), I get a letter from the CA as follows:

"Pay Now and Save 40% for a limited time only. Our client agrees to accept 40% off the balance due as settlement in full! Offer expires March 29, 2007."

Of course since I am in the process of buying my first home, I thought for a brief second that I should just go ahead and accept this offer so I can get it over and done with. HOWEVER...given the many months I've researched all the wonderful posts on this forum, I said NO...there has got to be a way for me to make this work in my favor not theres.

I had been using the standard form letter on this site for debt settlement offers since October 06, again to no avail. Now all of a sudden the CA sends me their offer. Now to my question...Should I counter this offer from the CA? If I do counter, is there any particular lingo I should use? Of course I will include that they delete the collection or list it as "PAID"?

I know Cali law is tricky and settling for less than the full amount could bite you if you dont state the proper thing in writing.

Any advice would be greatly appreciated as always.

[someonesomewhere]

Whatever you do, do NOT pay it believing thru their generosity and humanity they will delete. You will end up with a paid collection--which is little better than an unpaid collection.

If you have not read Dive's revised Credit Repair Primer, do it.

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=263069

At least read the first 2 posts, and these phrases in particular.

"PAYING A CA IS THE WORST THING YOU CAN DO."

"If they won’t PFD, then let it lie."

If the only extend of their promise to alter the TL is "Our client agrees to accept 40% off the balance due as settlement in full", then I would pass on it. Settled for less means a 1099, and it's still an adverse TL. Maybe it's slightly less than bad a paid collection, but it's degrees of bad and badder.

Since you're in LA, not CA now, I don't see how California law applies anymore. Louisiana law is the thing of importance.

If you're already in the process of buying a home, then I presume you're already approved for a mortgage, and this ain't gonna sway the APR on your mortgage much, if at all.

[nascar]

"Pay Now and Save 40% for a limited time only. Our client agrees to accept 40% off the balance due as settlement in full! Offer expires March 29, 2007."

Let me translate this for you;

The CA collects 40% of the money owed (allegedly). Gets their commission on it. Then, they returns the collection back to the OC, having only collected on 60% of the debt. Then OC farms it out to another CA who will now try to collect the other 40%.

Why? Because debt collectors are liars and you didn't get the offer in writing from the owner of the debt.

[bigboyinc]

Let me translate this for you;

The CA collects 40% of the money owed (allegedly). Gets their commission on it. Then, they returns the collection back to the OC, having only collected on 60% of the debt. Then OC farms it out to another CA who will now try to collect the other 40%.

Why? Because debt collectors are liars and you didn't get the offer in writing from the owner of the debt.

If u want to take this offer, then take it BUT I would send them a counter offer stating that "in exchange for payment, tr must be deleted from all cr and cannot be resold." or something like that. Make your intentions clear on what you want. Since you are still agreeing to pay them their 40% you want them to do something 4 u.

[KnowledgeWithin]

Whatever you do, do NOT pay it believing thru their generosity and humanity they will delete. You will end up with a paid collection--which is little better than an unpaid collection.

If you have not read Dive's revised Credit Repair Primer, do it.

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=263069

At least read the first 2 posts, and these phrases in particular.

"PAYING A CA IS THE WORST THING YOU CAN DO."

"If they won’t PFD, then let it lie."

If the only extend of their promise to alter the TL is "Our client agrees to accept 40% off the balance due as settlement in full", then I would pass on it. Settled for less means a 1099, and it's still an adverse TL. Maybe it's slightly less than bad a paid collection, but it's degrees of bad and badder.

Since you're in LA, not CA now, I don't see how California law applies anymore. Louisiana law is the thing of importance.

If you're already in the process of buying a home, then I presume you're already approved for a mortgage, and this ain't gonna sway the APR on your mortgage much, if at all.

Thanks Somewhere...I had read Dive's primer post before I wrote my thread. I just completed the necessary docs for bank to start the mortgage process and know they are gonna tell me to take care of that collection so I just wanted to figure out what leverage at all I could have with the ruthless CA. Blah.

Thanks to Big and Nascar for your info as well!

I'll let it lie for now.

[someonesomewhere]

I just completed the necessary docs for bank to start the mortgage process and know they are gonna tell me to take care of that collection

...

I'll let it lie for now.

In that case, sounds like there's at least some degree of urgency for you--but you don't want the CA to know that.

I would try calling 'em up and saying, "Hi, I got your offer. 40% off of $1,300. $780 sounds reasonable, but I'm only going to do this with a signed agreement from y'all that you represent the original creditor in this negotiation and that they will delete the tradeline from the credit bureaus. Otherwise, it's just not worth it for me."

Sound just a little flippant. Attitude you want to project is that you are serious about settling this debt, but that you are equally serious about getting the deletion. No deletion, no money.

If they start in with the threats. "Whatever. Do what cha gotta do. It's just not worth it for me to pay this if I'm not getting a deletion off my credit report."

"Do what cha gotta do" seems to REALLY tick them off. All the fight goes outta CAs whenever I've told 'em that. "This SOB really does not care" they think.