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Please Help Review My Settlement Letter


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My girlfriend is getting ready to fax the following settlement letter to a CA. This letter was pulled from the CIC CD.

Here's the cover letter.

To: Metro Collection Service

RE: Collection Account Number: 12160******* for Miss XXX

Original Creditor: Cherry Creek Place Baron Property

To Whom It May Concern:

Please review the attached settlement letter. Please sign and mail to ensure receipt by 4/24/2009. Once received, payment will be sent via certified mail for the agreed payment, to be received to Metro Collection Service by 5/06/2009.


And the letter itself.

Metro Collection Service, referred to as COLLECTION AGENCY and Miss XXX, referred to as CONSUMER, agree to resolve the matter of the alleged debt, originally held by the Cherry Creek Place Baron Property Company hereafter referred to as the CLIENT. COLLECTION AGENCY, hereby agrees to settle this alleged debt claimed by COLLECTION AGENCY on the following terms and conditions:

The COLLECTION AGENCY certifies that it is legally authorized to act in behalf of its CLIENT and that any agreement that the COLLECTION AGENCY makes on behalf of Client is legally binding on the Client.

The COLLECTION AGENCY and the CONSUMER agree that the present debt due is $62 (sixty-two & 00/100 dollars). The parties agree that the COLLECTION AGENCY shall accept the sum of $62 (Sixty two & 00/100 dollars) as full payment on the debt. The acceptance of the payment will serve as a complete discharge of all monies due, and the COLLECTION AGENCY agrees to consider the debt paid in full and agrees to not take further action to collect on the alleged debt. The payment shall be made in the form of a cashier’s check.

Upon payment of the $62, the COLLECTION AGENCY agrees to remove any listing or information that the CLIENT may have placed on the CONSUMER’S credit report. The COLLECTION AGENCY agrees to never at any time in the future place any information on the CONSUMERS credit report.

The CONSUMER feels that the negative information on CONSUMER’s credit report is damaging and while the exact estimation of the damage is not currently known, the CONSUMER estimates it to be $10,000. Should the COLLECTION AGENCY fail to remove the listing or reinsert it at a later date, the COLLECTION AGENCY agrees to award liquidated damages of $10,000 to CONSUMER.

This compromise is expressly conditioned upon the payment being received by 05/06/2009. If the CONSUMER fails to pay the compromised amount by 05/06/2009, the original amount owed by the CONSUMER will be reinstated in full, and immediately due.

The person signing this agreement, __________________________________, hereby declares that he/she is authorized to act as an agent of the COLLECTION AGENCY.

This Agreement shall be binding upon and inure to the benefit of the parties, their successors, and assignees.



Legal Representitive of the Associates


Miss XXX


I was thinking we may add that the client AND collection agency must remove any marks from the credit score. Also to possibly add something that this is not an admission of guile but an offer for speedy resolution.

Also, should she put her current address in the letter for the CA to send back the agreement too or maybe just a fax number? Is a signed fax sufficient?

Any feedback is appreciated.

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For 62 bucks do you really think anyone is going to spend 15 seconds on this? Why do you think they would do that?

I don't know much about collection agencies, but I know a lot about business. No way would I spend time on a small value deal.

Exactly how much do you owe and what are you trying to accomplish? Why?

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I should have clarified the original bill was only around 40 and is now, after fees, listed as $62. Hence the offer of $62. Seeing as it's a full price offer I see no reason someone wouldn't spend 15 seconds on it.

The crux of my post is more about the letter itself and what it may be missing though.

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