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Lawfirm won't settle


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My fiance and I have been trying to resolve his debts so we can buy a home. He has a credit card debt with Cap one that dates back to 2006 and is being handled by a lawfirm here in Colorado.

We sent the lawfirm a certified letter requesting a settlement of 25 cents on the dollar. They sent back a response quoting a statutute about how he is responsible because he used the card and therefore admitted to owing these amounts. They did NOT say anything about rejecting or accepting the offer so I called them.

The representative told me that Cap one will not settle for less then 85% but the original balance, back in 2006, was less then $700. Now they want roughly $2200.

We would really like to get this taken care of without having to pay the high balance...any suggestions?

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Did you sent the standard PFD? Where it states that the purpose of the settlement is merely to have this item removed from your credit files. It is not construed as an acknowledgement of LIABILITY for this debt in any form....

What is your SOL in your state? You mentioned you want to purchase a home, what did the mortgage company tell your boo what he needs to do to clean up his credit?From here on out, correspond via letter ONLY. those reps are liars!

Try another letter - maybe someone else can give advice on that.

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This is what the letter said...


Dear David A. Bauer:

Based on our recent discussion, you are aware that I am in financial difficulties because of my recent divorce as well as questions of my job security and am not currently able to make payments on my account.

My income barely covers my living expenses, and I have no assets to sell in order to pay you or my other creditors.

I am committed to pay this debt and am willing to offer a settlement of 25 cents on the dollar as payment in full.

According to the letter I recieved from you on January 13, 2011, my balance is $2,000+(not exact for privacy reasons). Based on a settlement of 25 cents on the dollars, I can make a payment in full of $500+(not exact) on March

11, 2011.

If you accept this proposal, please be prepared to report this account as "paid in full" to all three credit reporting agencies once I have made the payments we agree upon, and indicate such in writing to me as soon as possible.


The SOL in Colorado is six years so they are still within their rights. The company that we are working with says that we need to take care of all pass due debt or show that we have been paying them for a long period of time.


Edited by hope2build27
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