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Final Settlement Offer!

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Hello,

So I went through a third party debt settlement company a few years ago concerning this debt. After a couple offers, we finally agreed on a Final offer with the CA this past week. The agreed offer would be $9,000. I just received the final settlement letter that originated from the CA, as it shows the CA's letterhead(name of company and address) and it only states that I am settling for $2,000! The debt settlement and/or CA made a HUGE mistake! It is in writing and agrees to a full and final payment along with reporting this info to the credit bureau(s). It also references the OC and account number.

Is this settlement letter legally binding, as it's in writing? It's very specific and thorough verbage. The only discrepancy could be lack of a signature. The letter ends with a "Sincerely, Collections Department and their phone number".

I'd much rather pay $2,000 instead of $9,000 obviously. The negotiater I talked to at the debt settlement company was very flaky and realized her mistake after I mentioned it and came right back with a corrected settlement letter replacing the $2,000 with $9,000. That was the only difference between the letters. I told her I'm ok with paying $2,000 and she replied by saying, "Paying on the non negotiated letter even though it is in writing will

not fly. I had a client several years a go do that and they still tried

collecting for 2 years afterward. I remember they would not even show

the deducted amount on his credit report."

Is she just saying this to scare me into paying the $9,000?

Any advice and help would be greatly appreciated.

Thanks!

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No matter what the terms, the only agreement you might be legally entering into is an agreement to pay this particular CA 9K. Someone else will come after you for the remaining balance.

An agreement to settle the account needs to be made between you and the owner of the account, not a 3rd party collector. I think you're being duped.

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Well, I have two versions of the SAME settlement offer that specifically states that this agreement confirms the settlement amount. One states $2,000 and the other states $9,000. Other than that, there is absolutely no difference in the verbage. The rest being that this would be considered payment in full and the account would be closed and finished, etc.

So, how would I be getting duped?

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So, how would I be getting duped?

If you're entering into a settlement agreement, regardless of the amount, with someone other than the legal owner of the account, that agreement is not binding upon the owner of the account.

Whether it be 2K or 9K, you still aren't extinguishing the remaining balance by agreeing to pay the CA. If you want to settle, you need to deal with the right party.

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I would call the creditor; check their records and offer an over the phone payment off my checking account. Get the third party out of the picture and work directly with the creditor for the final settlement and then you will be sure you are not being taken advantage of. Was the second settlement letter from the third party or the original creditor?

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Well, I thought this third party CA owns the debt now, as it was charged off and has moved a couple times to different CAs in the last 2 years. The OC is acknowledged/stated in this final settlement offer:

"Once the settlement amount has been received, and the funds have cleared for payment, we will then notify our client that the account has been settled in full and that your credit bureau should be updated accordingly. You will then be released of any further liability to Eckity Capital Markets, LLC/First USA Bank NA and its agents in reference to this account."

So, First USA Bank was the OC. I know this account was charged off. I'm a little confused regarding the third party CAs. Has this debt been sold? It sounds like it hasn't.

Both letters are from this third party CA, "Leading Edge Recovery Solutions".

If I was to contact the OC with an offer, would I be able to propose the same amount? Any links to a letter template of this nature?

Thanks for all the responses thus far!

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If I was to contact the OC with an offer, would I be able to propose the same amount?

You can propose whatever amount you're comfortable with - the important thing is that now you know who you really need to be dealing with.

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