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Totally new, need some advice- Received my offer


OceanSpray
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Hey I'm new here, need some advice on this.

Just received my 3rd letter from the bank, they are offering 25% settlement and its due by April 2nd. What should be my next step to make sure when i pay all is settled and I'm not being sued, or targeted by any other collection agencies.

Do i need to send them some sort of the letter of agreement to pay? make sure they sign it? etc... please explain

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As each situation here is often unique... IMO, a self-made decision, with help from the good people here, seems best. For starters, I would suggest you look around the site, SEARCH for terms...

You may avoid having any "unpaid-forgiven" debt sold to a JDB/CA by including the following jargon..."The acceptance of the payment will serve as a complete discharge of all monies due, and the OC agrees to consider the debt paid in full and agrees to not take further action to collect on the alleged debt."

I'm a newby and not an attorney so use this info. at your own risk.

Edited by Ray S.
typos
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last time i spoke to them they told me that i will be receiving a 1099C form for the rest of the amount, which will count as income. Does this mean that they won't sell the rest of the debt to someone else? If i do get the 1099C from them, this ensures me that the account is completely closed?

By the way it is CITI bank and it seems that i'm not in collection with them yet, as the letter shows CITI and the department which I call answers as CITI.

Edited by OceanSpray
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I'm a "newby" and sorry that I don't have any good answers for you. You DO have time, however, to investigate this site and come up with an educated question/decision. I strongly suggest that you spend time here and use the word search function to your advantage. When you come up with your own plan of action, others will join in with comments/suggestions. It's not so simple a thing as just asking for help and having the solutions fall from the sky. You need to do some "homework"... :)

At this point, the best advice I can give you is to not trust any OC/JDB/CA.

IMO, NEVER speak with them on the phone... get everything in writing.

RELAX. What you learn here will empower you!

What you don't want to do is "settle" and then find out that the remaining balance has been sold to a JDB/CA.

Here is a letter I may use at some time. http://www.creditinfocenter.com/forms/sampleletter6.shtml

Edited by Ray S.
TYPOs
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Your post was a little unclear as to the terms they are offering. Probably because the bank was unclear in relaying the terms to you. Make sure you receive their offer in writing. Once you do consider taking the agreement to an attorney for review. It shouldn't cost more than a couple hundred to review the agreement and spot any issues you need to consider before you sign it.

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