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Ok Ok so I'll PAY! Now What??


freeatlastt
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This is my last collection bill and I want to get this monkey off my back already. Before you ask yes it is my bill I dv'ed them and they sent validation back. The SOL on this bill is up on October 2009. I have no interest in seeing or waiting if they will sue or not. I want to pay it and get this over with.

The JDB is Midland Management out of San Diego who bought it from Enhanced who bought it from from Card processing who bought it from original creditor being Spiegal.

Now what I owe is 3,074.00 which includes interest YADA YADA. Anyhow they have sent me a settlement offer stating the following:

Option 1: 40% OFF You Pay Only 1,844.60 Payment Due 11-04-2008

Option 2 20% OFF 6 Payments of only 409.00

Option 3 Monthly payments as low as 50.00 per month

What I am looking for is to give them a lump sum, but I'M think 40% is too low of an offer especially to a third party collector. I am also thinking of the 1099 I will probably have to include on my taxes.

What do you guys think? I can afford to give them the 1,844,60 but thinking this is WAY to high or am I being a prude and just pay it, while i still have it. TIA

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Okay, this is just my opinion, but, first of all, what you're dealing with is a junk debt buyer...3 times removed. You do not owe these people anything. They paid pennies on the dollar for the right to hassole you. (You do owe speigal something...but these people ain't speigal).

What kind of validation did they send you? Something that says "hey, we know you had a spegial card...we're collecting...send us the money?"

I'm not being smart assed about this...but me, I would never willing pay a JDB anything unless ordered to by a court. They just don't have any real evidence that says you owe them money.

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First I applaud you for taking the high road with this. You should draft up your own settlment letter with a really low number to see if they'll bite. Tell them you'll make one lump sum payment and include that you want the debt deleted from your CR (if it's listed).

If they don't response to your letter, you may need to negotiate over the phone. But you will still want them to send you something in writing via email or fax.

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Again...not trying to be smart assed...but this isn't the "high road". As I said, you don't owe these people a penny. By caving into their demands, you're essentially contributing to their junk debt buyer money making scheme. Yes, there are legalities involved...what they're doing is legal...if...BIG IF...they can prove to the courts satisfaction that they have all the right documentation that entitles them to collect this debt. They seldom do.

Chances are...what they've got...is your name on a list with a dollar amount. Period.

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As I said, you don't owe these people a penny. By caving into their demands, you're essentially contributing to their junk debt buyer money making scheme.

I hate to gainsay wtc, but debt can be sold, and someone has indeed sold the account and someone claims to have bought it.

If the OP wants to be done with the hassle, done with the risk of being sued, and done with the threat of a 1099 and so forth, send 'em 1/3 of what they're asking with a notation on the check "in full and final settlement of disputed account No. xxxxxx, per my letter of 10/xx/08" in the note field and a letter that says that on cashing the check the debt is fully and finally settled and no 1099-C form is to be issued and no remaining balance is to be sold to another collector.

They'll cash it.

The END.

(and you can give 'em hell if it's not the end)

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I'm with WTC on this one. MCM had a debt they claimed I owed and they didn't have anything that supported their claims. I contacted the FTC, BBB, and the IL AG and then got a hold of their compliance officer who sent me a letter stating the account was purged, un-able to be validated, and would never be sold or transfered again. I haven't heard anything since. I'm curious to hear what they sent as DV.

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I hate to gainsay wtc, but debt can be sold, and someone has indeed sold the account and someone claims to have bought it.

If the OP wants to be done with the hassle, done with the risk of being sued, and done with the threat of a 1099 and so forth, send 'em 1/3 of what they're asking with a notation on the check "in full and final settlement of disputed account No. xxxxxx, per my letter of 10/xx/08" in the note field and a letter that says that on cashing the check the debt is fully and finally settled and no 1099-C form is to be issued and no remaining balance is to be sold to another collector.

They'll cash it.

The END.

(and you can give 'em hell if it's not the end)

A

What if they don't cash the money order? Can they use that against me in court if they sue? That I admitted it was my debt, when I sent them payment settlement offer?

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What if they don't cash the money order? Can they use that against me in court if they sue? That I admitted it was my debt, when I sent them payment settlement offer?

In most courts, settlement negotiations are not admissable as evidence. And there's no damaging admission on your part anyway, particularly where you use the word "disputed" in the notation on the check. And in this sort of instance, it's not fatal to use your own check rather than a money order, since the letter and the notation on the check would basically make it fraud for them to touch your accounts further ... if they did do so you could get 3x the amount back from them in court, and attorneys' fees on top of that.

I am not disagreeing that what they have probably wouldn't stand up in court. I am just saying that they can buy a debt and you can choose to resolve it with them, regardless of what would happen in court. It seems you are biased toward that path, and I don't think folks should disrespect that decision.

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....and I don't think folks should disrespect that decision.
Agreed. Which is why I started my first post with "in my opinion". All I'm pointing out is that a 3rd time JDB is, in my opinion, extorting money from "I just want it over with" possible debtors by holding their credit reports up for ransom. In my opinion, the "right thing" to do is fight back in court.

While what they're doing MAY be legal, it is not fair or moral. Paying them just gives them that much more money with which to extort funds from other people.

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Paying them just gives them that much more money with which to extort funds from other people.

And I don't disagree on that either. In a perfect world debtors would all be flyingifr clones who would bring the JDBs to their knees. But some people just want it over with, and they need to know how to do it right, not be told that they shouldn't do it at all.

We try not to judge, remember?

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Be careful how you word a settlement letter. In IA, at least, any admission in writting with an attempt to pay for a debt can reset the SOL clock - so I've heard. Take this for what it is, but just be careful and never admit anything, especially in writting.

So is there a sample settlment letter out there that I can see to get a few idea's of how to word the letter and what to write on the settlment check if I send them one?

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If the OP wants to be done with the hassle, done with the risk of being sued, and done with the threat of a 1099 and so forth, send 'em 1/3 of what they're asking with a notation on the check "in full and final settlement of disputed account No. xxxxxx, per my letter of 10/xx/08" in the note field and a letter that says that on cashing the check the debt is fully and finally settled and no 1099-C form is to be issued and no remaining balance is to be sold to another collector.

flacorps pretty much has the jist of it. Just put it in your own words....
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I've got to add a word of warning, however. If you pay this JDB without firm, indisputable proof that they now own the debt, you do stand the risk of another JDB coming at you for the same thing later on. Claiming that you paid one won't stop another from trying to collect.

Remember, these people are in a really dirty business that depends upon half truths and intimidation...they even lie to each other.

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