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Arrow financial , how to go about settling?


Nevrsadie
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This is my first post, but have been reading this forum for about a week. Please bare with me.

I had several CC's that I fell behind on. Before things snowballed too much, I entered into a debt management program with Care One on 7/06. All of the OC's were willing to work with me except for Providian. They would not enter the program without a large payment that I could not afford. I tried to make payments on my own, but eventually I stopped paying on 6/07. The account has been with Arrow Financial since 2/08. According to the CA the ammount is now $6,651. I have been getting my act together financially and would like to try and settle. My question is what is the best way to go about this? I have been reading and realize that making a phone call is not the way to go, and I should use certified mail. Should I DV and wait, or just make an offer? If I would make an offer what should I start at 30%, 50%. This is my debt and I am not trying to get out of it, but the OC has already CO and the damage is already done to my Credit. I would just like to get it taken care off. Any suggestions are appreciated.

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Do you remember the original amount you owed? If not, I would ask for 50% (you might get it), and state you are willing to pay the amount in one lump sum because this might help you in negotiating the 50% pay off.

Do you want to get this tradeline removed from your CR or just settle it?

It being settled and being with a CA, this will not improve your credit score; might even hurt you.

So you might want to weigh out your options before settling...

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When was the last payment made on the Providian account?

My reasoning is that the SOL might be up or close to being up.

Since they were not willing to work with you in the first place and were bouight by WAMU and WAMU was bought by JP Morgan they may not have any records.......

From your posting it is a legitimate debt, but do you know the balance when it went into default?

This case is the type of case that really gets me, a person who has issues financially and is looking for some help and shunned by the creditor, half of me says screw them they took the tax deduction anyway and sold to Arrow for Pennies on the dollar.

In recent times people call the card co's and say they are having problems, the co's close the account and jack up the interest rate so you thought you could not pay before, now you really cannot pay. Dont they realize they do it to themselves? Once this person gets over this hump financially, they will never use their company again.

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Last payment was made in June of 07. I live in Pa, and I believe the SOL is 4 years. I do not know the actual amount before it went into default. And you are correct. If they would have worked with me in the beginning they would have there full amount right now as I have since taken care of my other cards that did work with me.

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Yes. You want to get a PFD but that's sometimes is very rare of CA's. Make sure you get everything in writing, and if has passed through a lot of hands...I would even try the DV process.

Or ask for even a higher settlement percentage offer to make your payment sum lower. It's up to you, but paying it...won't improve your credit score and it will still be there for 7 years :\

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Yes. You want to get a PFD but that's sometimes is very rare of CA's. Make sure you get everything in writing, and if has passed through a lot of hands...I would even try the DV process.

Or ask for even a higher settlement percentage offer to make your payment sum lower. It's up to you, but paying it...won't improve your credit score and it will still be there for 7 years :\

Dont you mean lower settlement perentage?

And so even if I do get this removed from my CR, it will not help my score at all?

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There is a difference between getting something removed from your CR and [aying off some pesky JDB.

Personall,y you had an old debt that has gone from Providina to Arrow. You are better off than you think. Arw will show up on your CR - dispute it. You may not sahke it off your CR, but give that little worry. Time will take care it it. In teh meantime, they will come after you. You just may beat them, So hang tough

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Dont you mean lower settlement perentage?

And so even if I do get this removed from my CR, it will not help my score at all?

You said 30% or 50% for the total debt sum. I say ask for a higher percentage: 70% to see if you can get the debt sum lower since you are willing to pay it. PFD would be the ONLY reason I would send a CA any money at all. Just having the CRA put "Settled" on your CR will NOT help increase your credit score.

Might be lucky to start the DV process - dispute the account on CR and send in a DV letter to the CA.

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Maybe...maybe not. Sometimes CA's just get "tired" of the repeated responses and sell the account to another CA.

The CA wants YOUR money and you have the choice on giving it to them or not. So in the words of Captain Planet, "The choice is yours". They can only take your money away from you if you give them the information of your bank account (which you should NEVER do), you give them the money (not very smart to do unless you are getting something out of it), or they win a judgment/case against you, and the court MAKES you pay the money.

The DV process game can be "fun", and I've had times during it when I would negotiate. But if the CA didn't follow my terms, I would respond with another letter; eventually, most did not want to play the game with me. :)

Educate yourself by reading up on the debt laws in your state, FCRA, and FDCPA. All 3 are nice to have around you at times when you are writing letters; just another tool to have in your credit repair toolbox :).

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So first step should be to DV Arrow. I found a sample letter on CIC.

As I understand they have 30 days to validate. If they do validate then I will start with an offer of 25% PFD, and go from there.

If they dont validate then I will dispute with CR's.

All communication to be done by CMRRR.

I am very much a newb so does this sound like the correct course to follow?

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  • 2 weeks later...

I was getting ready to send my DV letter to Arrow and get this in the mail.

Redline Recovery Services, LLc

Client name: Arrow Financial

Original Creditor: WaMu

Balance: 6,727.91

They made an offer of 3,363.96, 50%.

1st did Arrow sell to another JDB, or are they just collecting for Arrow?

2nd after I send DV to Arrow or Redline, if they do validate, do you think that 25% is a good starting point?

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hi

I have settled an account with Original Creditor cc company for 17% of the outstanding debt. ($2877). In my approach, they sent me a letter offering 55% settlement and I called them up and requested a fax number. They asked for all kinds of verification but never gave them the telephone number. Everything else was well verified. (DOB, SS#,address, acct#) but no telephone number. Let them also know they can expect a fax by so and so time.

Once I received the fax # i drafted a settlement letter and faxed it back to her . The settlement letter requested

a) The exact amount i was willing to offer as full payment in lumpsum.

B) The time/date by which it will be paid in full.

c) In return for this offer, the TL will be deleted and no late payment, chg offs will ensue.

d) The difference in charge off and settled amt will not be reported as 1099-C income

e) I told them " I have several other companies that I have to settle with and have limited funds at this time".

What I got off from that is

They were willing to accept the offer of $500 made on a balance of $ 2877.

However, they would agree to a "SETTLED" account versus signing my agreement as stated in writing.

They would not give me anything in writing.but are willing to accept the $500.

What do you think i should do?. Here i am dealing directly with the original creditor and not a CA, JDB etc.

Let me know if you have suggestions.

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I have four credit cards that are chargeoffs.

AMEX: $14000

HSBC: $ 5177

USBank: $12,000

FNB: $ 2877

Cap1: Under lawsuit right now; balance $30k

My question is simple. If i worked out a settlment with all my abovesaid creditors and best i could do with each of them is a "SETTLED" ACCT would that in anyway improve my credit score. Assuming I had the money and could afford to settle, would that do me much good. My credit score as of April 04, 2009 is 518. On FNB i have a " settle offer" for $500. If I take it and i do the same with other creditors and get a good deal from all of them, is that a recommonded approach. Yes or No?. Why so?

Just 1099-C income from settling with all of them for tax year 2009 could exceed $46000.

Is it worth it? just for a better FICO score?

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