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Should I Accept This Settlement?


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I have received a debt settlement offer of 35% of the balance (~$7000, so the settlement would be ~$2500) from the Law Office of Joe Pezzuto acting on behalf of CACH, LLC.

A few things about this issue:

  • I ran a credit report and Experian showed the debt at ~$4000 instead of $7000.
  • My last payment was in early 2004, and the statute of limitations in MN is 6 years.
  • I don't believe there have been any judgments out on this debt.
  • Before I researched this debt I had a lawyer write the law firm asking for written confirmation that if I paid the 35% the matter would be settled in full. She also added that if they did that, I would agree to pay. (I wish she hadn't said that).
  • The law firm sent written confirmation agreeing to those terms.
  • This settlement offer is the second or third letter I have gotten from them (going back several months) so I'm not sure if I still have the opportunity to demand debt validation.
  • The offer is good till August 31st, so I only have a couple days to decide what to do.

Any advice would be appreciated. I'd gladly pay the ~$2500 to avoid getting sued and garnished for $7000, but I'd rather pay nothing at all if I don't rightfully owe them the money.


Edited by dougieboy
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The debt is time barred why would you pay it?? I wouldn't pay CACH a penny, they never have authenticated evidence. Why would you pay an entity who paid $200 for a $7,000.00 alleged debt? Doesn't make sense. These attorneys never cease to amaze me. One of the first things out of their mouth is , "Do you owe the debt?" Why would you owe a debt that they can't prove or is past the SOL?? WOW, what great legal advice. Pro Se all the way!!

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You didn't even get to see the letter before the attorney sent it? :shock:

If you're sure that your last payment was "early" in 2004 and you're past the time (6 years later) for it to be within SOL, I think I'd write Joe Pezzuto's office and tell them something like this, (certified, return receipt requested) -

Your Name

Your Address

Their Name

Their Address


In Re: Account # _________________

Dear Collection Manager,

This letter is in regard to your letter dated _________, (copy enclosed) regarding the collection on the debt account given above.

There seems to be a discrepancy in regard to this alleged debt and therefore I'll need more information before I proceed. After an investigation, I don't believe this is the debt I originally thought it was and therefore I dispute this account.

Please send the following documents:

1. Authenticated cardmember agreement for this account.

2. Complete payment history from a zero balance up to the amount of the alleged debt.

3. Credit card statements verifying account number and account holder.

4. Authenticated evidence of the agreement or sale of the alleged debt between the original creditor and CACH, LLC.

If it does prove to be my debt, I would like to inform you that I have checked with my State Attorney General and verified that the Statute of Limitations for this type of debt through the courts in Minnesota has expired. If you intend to take this issue to court, I shall inform the court of my dispute of this debt and that the debt is beyond the Statute of Limitations.


Your Name (typed)

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CACH-CACV-Collect America are one-and-same, basically: JDB'ers.

I doubt there is valid documentation on your "debt". I bet all there is your name and particulars along with a "debt" figure on a computer screen.

Even though its SOL, CACH is hoping you ignore their motion of SJ they are sure to file when you wisely refuse their settlement. CACH will file for SJ through it's franchise holders

You can make this go away, but you need and want Court action. Stay vigilant, but don't loose sleep over this. CACH won't push this file to a verdict.

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I'd never pay a JDB a dime unless ordered to by a judge. I can understand feeling a moral obligation to pay back an OC, but never a JDB.

If you're sure it's SOL, I'd tell them to go pound sand. Heck, even if it wasn't SOL, I'd still send a C&D. If it's close to SOL, odds are they don't have enough evidence to prove it in court (plus it could be SOL by the time the sue if they sit on it long enough).

Anyway, at this point, it's probably SOL and in another 18 months or so it should also fall of your credit reports. Unless you need it off your reports ASAP in order to close on a loan, I'd just send Linda7's letter or just a C&D. If you do need it off your reports, I'd counter with 35% of the $4000 amount ($1400) that's on your credit report in exchange for deletion from all credit reports and they can't sell the balance, nor will they send a 1099 (If they pushed on the 1099 I'd accept that, the additional taxes wouldn't be much). But I'd only do this as a last ditch effort to close on a loan, and I mean I'd have to be crazy desperate as I loath JDBs and hate to see them make so much as a penny.

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Thanks for your responses. I hope I didn't shoot myself in the foot by having this lawyer write a letter for me. Does that become a new written contract? Could it reset the SOL? Like I said, I didn't even have a chance to review the letter she sent, didn't sign anything, and she didn't even get my name right in the letter (she referred to me as "Mr. [first name] throughout the letter.)

Anyway, I'll go ahead and send the cease and desist letter and see what happens.

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