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Settle for Less.Adviceable


Yawo64
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Hi,

If a CA (representing the OC) offers me a 60% settlement for a small debt - is it adviceable to take it.

Under what conditions is it adviceable to do so ?

If you settle for less, can they later sell the outstanding amount.

Does setlien gor less make it more difficult to negotiate a PFD?

Thanks in advance - Y

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I had a similar situation I settled with the CA for 60% then a year later there is a new CA trying to collect the balance according to them and the OC its because the 1st CA made the offer not the OC so I guess Im still liable for it. I think I would get the agreement from the OC :confused:

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If it's a small debt, I'd pay it in full over settling for less. Than, negotiate the reporting.

I hear it hurts your credit score when you settle. I would only do that for larger amounts that I know I otherwise couldn't do anything else about.

Also, if the amount you save is over 500.00-600.00, you'll get a 1099 next year for your taxes.

Good luck with whatever you decide to do. Definitely, get ANY offer in writing and make sure the original creditor is on board with the offer. Make sure you get an agreement that specifies this account will be CLOSED and settled in full.

Elyse

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I had a similar situation I settled with the CA for 60% then a year later there is a new CA trying to collect the balance according to them and the OC its because the 1st CA made the offer not the OC so I guess Im still liable for it. I think I would get the agreement from the OC :confused:

When the OC decided to assign the debt to the CA, they gave them certain rights. In other words, the CA was lawfully acting on the behalf of the OC. Do you have the agreement in writing at all??

Elyse

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