help with account settling letter please!

[littleone]

I have an overdue account with GE Money Bank Care Credit for around $7500. The account is 6 months past due and a few months ago I received a letter from a collections agency saying they had been assigned the debt. Then about a month later I started receiving statements from GE Money Bank again. I called the collections agency and they said the debt was no longer in their hands and had been passed on back to GE Money Bank.

So yesterday I called GE Money Bank, using the phone number listed on my last statement to assure I was talking to the right people, but I ended up talking to an outsourced representative in another country. I was able to negociate a lump sum settlement over the phone for abount 1/3 of the debt. This is great news, but I am a little wary and wanted to run this situation by a professional before sending the money. First, they said in order to accept the lump sum agreement at this time they would need a routing number to the bank account I was going to use to pay them. This sounded suspicious so I refused and said I would only send a cashiers check. They agreed to that and I went to the bank to have one made out. I called them back afterwards to request something in writing saying that after the check was received, my account would be considered settled, and they faxed me a letter saying as such. However, the letter was signed simply, 'collections department.' No name, no signature. No one person accountable for the decision.

At this point I am holding off on sending the check because I am concerned about a couple of things - first, asking for my routing number was a red flag. Is this normal? What's to stop them from taking more money than we agreed on once they have access to my account? Granted, they agreed to the cashiers check, but it still left me suspicious. And second, why did they not offer this agreement in writing until I asked for it? Shouldn't some sort of contract, signed by both parties, be standard when making settlements like this? Should I call back and ask for a more detailed letter with a name and signature on it and what exactly should a letter like this say?

Please get back to me asap, I would really appreciate any feedback or advice. Thank you so much!!

I

[RebelLady]

At this point I am holding off on sending the check because I am concerned about a couple of things - first, asking for my routing number was a red flag. Is this normal? What's to stop them from taking more money than we agreed on once they have access to my account? Granted, they agreed to the cashiers check, but it still left me suspicious. And second, why did they not offer this agreement in writing until I asked for it? Shouldn't some sort of contract, signed by both parties, be standard when making settlements like this? Should I call back and ask for a more detailed letter with a name and signature on it and what exactly should a letter like this say?

Please get back to me asap, I would really appreciate any feedback or advice. Thank you so much!!

You were right in offering to send a cashier's check rather than giving them your banking information.

If it were me, I wouldn't send them anything other than their letter back acting as if I am sure the lack of a signature on the letter was an oversight on their part.

I would request they sign the letter before returning it to me. I would also attach a copy (copy only!!) of my cashier's check to let them know I was serious in offering them money and that I have the money and will send it as soon as I get their signed letter back. Signed, of course, by someone who has authority to speak and act on their behalf. This will also act as a hook to expedite them signing and returning their letter.

RL