Will this agency work with me?

[Charlib]

They have been so far, but I need advice.

I've been doing a great job of paying off my creditors and getting my life back on track.

I'm having an "issue" with one agency. Discover sold my debt (about 10K) to a collection agency.

They offered to settle for about $3K if I could come up with all the money at once. I couldn't do that.

Then they offered to settle for about $4.5K if I spread it out over three payments. Can't do that right now, either.

A few months ago, I sent them $500 (to show good faith, etc...). I was working with a very nice rep and explained that I could only send $100/month for a while (I actually anticipate being able to pay them off completely within a couple of months, but not right now).

I sent them $100 each month for 3 more months.

I realize that I will likely pay much more than the initial offer of $3K, that's OK - I owe the money and want to fix this.

However, when I called my rep to tell her I sent the $100 payment, the rep I was working with was no longer with the company.

The new rep told me that if I don't make a payment of at least $1K next month, that they will return the debt to Discover and they will attempt to collect on the entire amount ($10K).

Is that how it works? I really want to pay this off, but can't come up with that much each month. I realize that $100/month is a very small amount, but wouldn't they rather have that than nothing?

On a side note - the new rep could tell that I've been paying off my creditors. Not that I mind that (it shows I'm trying), but how do they have access to that information? Isn't that confidential? Just wondering about that.

[scorch]

I'm guessing you couldn't get a loan for $3,000?

Well, I suppose you can DV them and ask. some of those questions.

I think a good question to ask would be if the debt was bought or assigned, because if they bought the debt, then why give it back to the OC? Then you could end up paying them $100 a month.

Also, maybe it's a good idea to try and get a hold of the OC and work something out.

[LUEser]

First things first, you need to know whether or not your debt was really sold or is the CA just collecting for Discover.

I've never heard of a JDB selling back a debt to an OC, so them saying that either makes me thing they're lying or the debt is still owned by discover .

Who is this company you speak of?

BTW, Scorch, you're siggy makes me want to turn on Firefox's User Agent Switcher, if you know a little something about computers, you can make it say some crazy things. Like, You're using super magic browser on an etch-a-sketch.

[Charlib]

The company is Associated Recovery Systems. At one point I did get a settlement offer "in writing" (via e-mail) that says this (in part):

"This letter confirms that ASSOCIATED RECOVERY SYSTEMS is duly authorized to accept of $3579.60 as settlement in full of the above-referenced account. This settlement offer requires all payments to be in our office by the following dates: "

It also says that they are "(A division of ARS National Services, Inc.)"

Of course the plan was something I could not afford at the time, but all the info contained in the e-mail was correct - account number, original balance, etc...

I guess I don't understand the difference between them selling the debt, or using them to collect, but I was specifically told that if I didn't make a large payment next month, that the debt would go back to Discover.

And no, unfortunately, I cannot get a loan for $3K.

What is a JDB? And what does "DV them" mean?

Thanks for help, you guys...

[NASCAR_Devil]

The company is Associated Recovery Systems. At one point I did get a settlement offer "in writing" (via e-mail) that says this (in part):

"This letter confirms that ASSOCIATED RECOVERY SYSTEMS is duly authorized to accept of $3579.60 as settlement in full of the above-referenced account. This settlement offer requires all payments to be in our office by the following dates: "

It also says that they are "(A division of ARS National Services, Inc.)"

Of course the plan was something I could not afford at the time, but all the info contained in the e-mail was correct - account number, original balance, etc...

I guess I don't understand the difference between them selling the debt, or using them to collect, but I was specifically told that if I didn't make a large payment next month, that the debt would go back to Discover.

And no, unfortunately, I cannot get a loan for $3K.

What is a JDB? And what does "DV them" mean?

Thanks for help, you guys...

JDB= Junk Debt Buyer

DV= Debt Validation

[Charlib]

LUEser - any more advice for me given the additional information?

Thanks!

[LUEser]

Still not sure if Associated Recovery Systems is a JDB or not. I haven't done any research on them.

Have you called discover to see if they still own the debt? Or, have you checked your credit report to see if the notation is showing a 0 balance and "sold or transferred" notation.

You mention that the debt would "go back to discover," and this leads me to believe that discover still owns it.

Again, we have to be sure before we can move forward.

BTW, how old is the debt?

[Charlib]

I did some research, and from what I can tell ARS is a valid, reputable collection agency. Totally separate from Discover. They are hired to do collections, so I guess the debt is still owed by Discover.

I'm waiting on my credit report to see what it says.

The debt is about 5 years old. As I mentioned before, it IS a valid debt and I DO want to pay it.

I just don't understand why they won't accept a smaller payment (as opposed to no payment at all).

I'm really trying to work this out, even if I don't get a reduced settlement offer. Doesn't it mean anything that I'm making regular, monthly payments?

Am I missing something?

[LUEser]

I don't know if I'd use the words reputable and collection agency in the same sentence and have it make sense.

No worries mate, just wait on those credit reports and we'll see where to go from there.

If they don't want to take your money, then just save it or find someone else who does.