ERC Collection Settlement offer

[up2eyeballsindebt]

I have been reading these boards for a while but haven't posted a lot. I have also been negotiating offers to settle several accounts in collection. I recently negotiated an offer with ERC (Enhanced Recovery Collections) for 30% of the original debt. I value the opinions of the members of this forum and the experience you all have with negotiating debts.

This is a letter I received recently to settle a debt for a Chase account. I didn't try debt validation, but I think this is a fair offer. Is there anything else that should be included in this letter? Also, I have read there is a chance they can come back on me for the difference of the settlement amount and original balance after I make a payment.

Is there anything else I should keep in mind before I cut the check to settle this debt. Thanks again for any suggestions, I value everyones opinion

[up2eyeballsindebt]

oh yeah I forgot to mention I am an OHIO resident, if that helps.

Thanks again ALL!!!

[Amerikaner83]

OK let's look at this.

There is no mention of deletion from your CRs - and they tell you that they will report the "forgiven debt" to the IRS. NO mention of anything regarding not selling the remianing balance to anohter CA...or anything along those lines.

I wouldn't do it, strictly looking at the face of the letter.

And another thing - DO NOT "Cut a check"...send a money order or cashier's check. Don't want a CA to have your bank info do ya?

Edit: Ohio? Oh crap. Yeah that helps. Ohio SOL is 15 years - OUCH.

[up2eyeballsindebt]

Amerikaner83,

Thanks for your reply, below is the exact letter I sent them with the personal information deleted of course. Do you think anything should be added to the letter? Also, they never signed this just sent the above mentioned letter to me. I really appreciate this help from anyone, I am in a position where I need to get these collections settled ASAP, but of course I don't want to seem to eager to settle with them.

AGREEMENT TO COMPROMISE DEBT

Re: MYNAME

Creditor: Chase Bank USA, NA

Creditor Acct: XXXXXXXXXXXX

Current Balance: $1,272.03

Dear Collections Representative,

This is my proposed agreement to compromise debt referenced to above according to the following conditions.

Enhanced Recovery Corporation, referred to as COLLECTOR for, Chase Bank USA, NA, referred to as CREDITOR and MYNAME, referred to as DEBTOR, agree to compromise the indebtedness as between them. Enhanced Recovery Corporation, COLLECTOR for, Chase Bank USA, NA, 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 $1,272.03

(One thousand two hundred seventy two $ 03/100 dollars. The parties agree that the CREDITOR shall accept the sum of $381.60(30%) (Three hundred eighty one & 60/100 dollars) as full payment on the debt owed. The acceptance of the payment will serve as a complete discharge of all monies due. The payment shall be made in form of money order.

In addition, upon accepting of the $381.60, 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 DATE. If the DEBTOR fails to pay the compromised amount by DATE, 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. Please return a copy of this letter signed within 14 days of receipt to the address of:

Dated: _______________

Signature: ____________

Representative of Enhanced Recovery Corporation

CREDITOR

Signature: ____________

DEBTOR

THANKS ALL!!!!

[hiblues]

you didn't say but by the 'tone' of your post I gather that this is

a very old debt ( over 7 years) that isn't reporting on any CR, and that

you want to get this out of your hair so there is no fear of

getting sued.

So the question is, "Deal or NO Deal" ( my wife loves that show )

I would take the deal if I were you (so long as it is older than 7 years) --

oh and btw discharging a debt is the same as 'forgiving' a debt.

a CA can only do one (1) of the following:

1. discharge the remaining debt and report it to the IRS as income.

or

2. sell or assign the remaining debt to another collector

( they cannot do both)

also,

If the debt is younger than 7 years and it is still being reported on your CR,

make sure you counter offer with a PFD.

So the question is?

How old is the debt and is it being reported on any CR?

[Amerikaner83]

No sense talking about what the letter "should have" been - but since they did NOT sign it, then they won't abide by it.

I may send another letter...something that states the reference to the account is to be REMOVED from your credit file...

But I'll be honest - in Ohio there's a 15 yr SOL so you can be sued for 15 yrs from the date of delinquency...

Really it's up to you how you go from here...just don't send them a personal check ok?

[up2eyeballsindebt]

It actually just went into collections about 6 months ago. I managed to scrape by paying it until about 6 months ago. All of my CC bills went into collections BC I was hospitalized in a serious car accident that nearly took my life, and was unable to work. Long story short, this is one of several that need to be settled and or paid on because my job requires a Clearance. Maybe I should consult an attorney?

Thanks for the help HIblues and Amerikaner83

[hiblues]

It actually just went into collections about 6 months ago.

oh crap.......

and sorry about your accident- hope you are going to be ok.

so what you need to include in that agreement is a PFD.

[Amerikaner83]

yeah - no kidding.

even if you're getting a 1099 (IRS forgiveness), PFD is your best option.

[up2eyeballsindebt]

I'm a healthier now than right after my accident although I am somewhat disabled, not that the CA give a crap about any of this, SSA because I was denied disability twice. Anyhow, life goes on.... I have learned to treasure each day I have now.

I found a few sample PFD letters that will work. Again thanks for the help I will update when I get a solution.

[Amerikaner83]

remember...with any letters you find - you need to tailor it to fit not only your situation, but your "style". Know what I mean?

[up2eyeballsindebt]

Indeed I will incorporate my style, with everyone's help and input I will get my debts settled. I have learned a lot from reading posts on this site. Everyone's help has been greatly appreciated, Thanks Again.