megapro Posted January 12, 2012 Report Share Posted January 12, 2012 (edited) Hi! I've been reading and this looks like a great community so I've figured I'd register.Currently I have a chase private student loan that has defaulted and has worked its way into collections. They offered to settle for $6K on $40K.I don't know if this is too good to be true, or if the loan has been sold? It shows on all of my credit bureau with a balance of $0. What should I do? I called chase and they told me that they still owned the loan. Edited January 26, 2012 by megapro Link to comment Share on other sites More sharing options...
Torden Posted January 12, 2012 Report Share Posted January 12, 2012 Is Chase the one reporting this at each of the CRAs? When did it default? Do you have $6K to pay this? Link to comment Share on other sites More sharing options...
megapro Posted January 12, 2012 Author Report Share Posted January 12, 2012 Yes chase reported it as $0 for all 3 CRAI opened these accounts back in 2005. They defaulted around 2008/9 around the financial crisisI'm really ??, if I should trust this settlement. I do have the funds to pay this.What should be my next step? Link to comment Share on other sites More sharing options...
Torden Posted January 13, 2012 Report Share Posted January 13, 2012 It is easier and safer to settle with OC than with any CA or DB. Just be sure to have it all spelled out in writing very clearly. It's a good idea to have an attorney look over the agreement. Be sure it says "settled in full upon receipt of $6k". Be sure to keep all receipts and paperwork on this for at least 10 years.Be aware you will take a tax hit as if the difference were your income. If someone paid you $34k for some reason, and you used that $34k plus the $6k you have, to pay this debt in full, you would also owe taxes on that $34k. Well, Chase is "paying" you $34k to do just that, as the IRS will see it. You'll get a 1099 tax form from Chase showing your income. It's a special one called a 1099-C (you can download a blank copy from irs.gov to see what it looks like). In some cases you can get the amount spread out over future tax years. You would need to consult with a tax accountant or a tax service to find out what you can do to minimize your tax hit. Since you would be doing the settlement in 2012, it will apply to your 2012 taxes. Link to comment Share on other sites More sharing options...
megapro Posted January 13, 2012 Author Report Share Posted January 13, 2012 thank you! hopefully I can keep playing games with them and send them letters so I can hit SOL Link to comment Share on other sites More sharing options...
megapro Posted January 17, 2012 Author Report Share Posted January 17, 2012 Just to update the situationCreditor: JP Morgan / Original CreditorDear XXX,We are writing to you regarding your JP Chase Account.As of the date of the letter you owe $21,309.58This letter will serve as confirmation that AMerican Acoradius International is willing to accept $2809.00 to settle the above referenced account.Upon clearance of your payment, we will notify our client so they can update their records accordingly----------------Theres a bit more to the letter, but what do you guys think?Should I have them send me another letter or will this seal the deal?I've tried contacting another CA regarding another account regarding a similar situation, but told me that their offices were not able to write me a letter.ACI - The people here i've been speaking with were kind, and never tried to argue with me. Spoke english without any accents.Nationwidecredit: Rude/ spoke english with heavy accents.I'm not trying to be racial, I just want this settled : ( Any Suggestion? Link to comment Share on other sites More sharing options...
Torden Posted January 18, 2012 Report Share Posted January 18, 2012 Creditor: JP Morgan / Original CreditorDear XXX,We are writing to you regarding your JP Chase Account.As of the date of the letter you owe $21,309.58This letter will serve as confirmation that AMerican Acoradius International is willing to accept $2809.00 to settle the above referenced account.Upon clearance of your payment, we will notify our client so they can update their records accordinglyDANGER, DANGER, WILL ROBINSON, DANGERThis is "carefully" worded to make it not binding on Chase at all. It is American Cordius International (ACI) that is deciding to be willing to accept a mere $2809.00, not Chase. MAYBE there is contractual relationship between ACI and Chase to the effect that Chase assigns this decision making to ACI. However, you and I do not know whether this is the case or not. This could still leave you in debt to Chase for $18,500.58. The "update their records accordingly" might simply mean to record the payment of $2809.00.This is one of the (several) reasons it is generally recommended to ONLY deal with the OC (for a debt that is not sold).Theres a bit more to the letter, but what do you guys think?Should I have them send me another letter or will this seal the deal?It is no deal with Chase.I've tried contacting another CA regarding another account regarding a similar situation, but told me that their offices were not able to write me a letter.Send them a letter (always via CMRRR) telling them, in these words:It is inconvenient to me to communicate, at all times, by telephone, email, or fax. Now you know.That leaves only four options for them:1. Communicate by writing you a letter.2. Stop communicating and go away.3. Sue you.4. Violate 1692C(a)(1) and communicate with you by an inconvenient means.ACI - The people here i've been speaking with were kind, and never tried to argue with me. Spoke english without any accents.Sounds like their operation is domestic and at least someone is being very careful.Nationwidecredit: Rude/ spoke english with heavy accents.I'm not trying to be racial, I just want this settled : ( Any Suggestion?Is this on another thread somewhere? If not, it should be if you need some help with it. Or are you just citing this to show a difference in collector behavior?To avoid confusion, different accounts, especially with different collectors, should be in different threads. If you believe accounts would be better discussed in a common thread, start the thread with statements about all of them you know about and explain the connection between them. Link to comment Share on other sites More sharing options...
megapro Posted January 25, 2012 Author Report Share Posted January 25, 2012 update!So More contact, my deadline is coming up and they told me that I can record them telling me that the balance will be settled with a $0 Balance.They will also send me a confirmation letter letting me know that the account will be settled and that the account is now $0.SOOO. If i keep records of this paperwork, and they do end up selling the account or start trying to recollect the difference. Will I have the power to sue or anything? Link to comment Share on other sites More sharing options...
megapro Posted January 25, 2012 Author Report Share Posted January 25, 2012 IF anybody knows of any good attorneys in the state of MA that would like to lend their service to me, Please PM ME. Link to comment Share on other sites More sharing options...
megapro Posted January 25, 2012 Author Report Share Posted January 25, 2012 lol SIGH.My credit report lists this account as $0 and charged off. What does this mean????????? Link to comment Share on other sites More sharing options...
megapro Posted January 25, 2012 Author Report Share Posted January 25, 2012 also I remember them sending me a check in the mail instead of mailing it to the school.I think I know what I can do now! I will update more with a success story! Link to comment Share on other sites More sharing options...
mj22 Posted January 25, 2012 Report Share Posted January 25, 2012 Had a friend go through same. Stick with it. Link to comment Share on other sites More sharing options...
megapro Posted January 26, 2012 Author Report Share Posted January 26, 2012 I had the final conversations recorded, spoke with chase and they confirmed that ACI is handling their case. Eventhough for some reason the balance is listed on all my CReport as $0 but charged off, (not transferred or sold).I sent out the checks noted as Payment in full, and recorded them telling me that the debt will be settled. and will receive a letter noting that my account will be $0. I'll take the 1099c eventually and file insolvency because I'm still in school and have no means to pay or any assets.(I researched the letter I got on google and it looks like some law firms posted up their success stories, and I saw an identical letter word for word. so I think I should be okay)Although I may have been able to score a better deal, I settled for about 13% on 40ish K. One down, and a few more credit cards to go.Lesson Learned & Thanks this place is a life savior. Link to comment Share on other sites More sharing options...
BTO429 Posted January 26, 2012 Report Share Posted January 26, 2012 The law offices of sokolov l (877) 490-6520 Link to comment Share on other sites More sharing options...
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