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Is this a valid settlement agreement?


whitey
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Hello,

This is my first post and I would like to thank all of the great folks that contribute to this awesome forum.

With knowledge I learned here, I'm close to negotiating a settlement agreement with Arrowhead Credit Union in CA. to settle a $57,000 charged off loan for $18,500.

My problem is the settlement letter they gave me does not contain everything I asked so I am hesitant to make the payment.

The settlement agreement only states:

"This letter is to confirm that Arrowhead Credit Union agrees to settlement on your loan listed above. ACU will accept settlement subject to a $18,500 certified funds payment being made on your accont (accont is mis-spelled).

Please provide this settlement statement with payment. This offer will expire on January 31 2012."

Do you guys think settlement agreement is valid and has enough information?

I requested that the settlement agreement state:

1. After receiving the $18,500 payment, ACU will consider the account/loan settled in full with zero balance owed.

and

2. The 3 major credit reporting agencies will be updated.

I have requested the agreement be revised but the collections manager will not respond to my emails, voicemails or fax.

Am I being paranoid? Should I make the payment?

I sincerely appreciate any help or advice.

Thanks,

Jim from CA.

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As long as it's on their letterhead and signed by their manager, I'd think it's valid.

However, I'd try to get a deletion...

Thanks for the input.

I tried for deletion and payed in full but the manager would only agree to settled in full. (all via email) she then didnt mention it on the agreement.

She only stated "ACU has agreed to settlement on your loan"

MORE OPINIONS PLEASE!

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Fax them a letter to summarize everything in the emails and ask for a reply on their letterhead.

Make sure any settlement agreement is on their letterhead as well.

Thanks,

They emailed me a revised settlement agreement adding a new paragraph that states:

"Once the agreed amount has been received your account will be reported to the credit bureaus as “settled” with no further collection efforts to be taken."

Its not exactly what I requested but I think I may be ok.

What to you guys think?

Thanks,

Jim

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The letter now reads like this:

January 23, 2012

RE Account: XXXXX

Dear Mr. XXXXXX

This letter is to confirm that Arrowhead Credit Union has agreed to settlement on your loan listed above. Arrowhead Credit Union (ACU) will accept the settlement subject to a $18,500 certified funds payment being made on your accont. Please provide this settlement statement with the payoff. This offer will expire January 31, 2012.

The cashier’s check should be mailed to: Arrowhead Credit Union, P.O. Box 735 San Bernardino, CA 92401-9914 Attention department 83. Funds may be wired to: Arrowhead Credit Union ABA# 322282603, Account # 882800.83, Account Name: ACU Financial Assistance Suspense. Please also note your account number listed above.

Once the agreed amount has been received your account will be reported to the credit bureaus as “settled” with no further collection efforts to be taken.

Please call (909) 379-XXXX if you have any questions.

Sincerely,

XXXX

Collection Manager

Arrowhead Credit Union

Any opinions?

Thanks.

Edited by whitey
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It looks ok. It appears it won't be deleted from your CR, but any creditors who view the entry will see that you settled and that looks better than not paying at all.

However, if the $18,500 is the full amount, I would prefer that they add to their CR entry "settled and paid in full". If it's not the full amount, it's fine.

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It looks ok. It appears it won't be deleted from your CR, but any creditors who view the entry will see that you settled and that looks better than not paying at all.

However, if the $18,500 is the full amount, I would prefer that they add to their CR entry "settled and paid in full". If it's not the full amount, it's fine.

Thanks for the input. The full amount was $57,000.

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