Jump to content

Settling with NCO help!


jmo1209
 Share

Recommended Posts

I'm in college and know very little about credit cards except for the fact that I am in debt. I have had a citi card since 2009 and have accrued a balance of 3,297.36. I haven't paid them for over a year and have ignored all phone calls.

Citi sent me a statement saying the entire balance is 3,297.36 and minimum payment is the same. I called Citi and put in my social security and they transferred me to NCO vendor. This guy offered me a 12 month plan of 274.78 or a settlement of $1000.

I have the $1,000 to pay, but I am confused from seeing so much information on the web. Is it bad to settle in this case? Will it be done with for good? Will it mess up my credit score even more?

He wanted me to pay it over the phone right there which sketched me out. Can someone please tell me what documents I should ask for and get signed before I give any money away?

Link to comment
Share on other sites

I'm in college and know very little about credit cards except for the fact that I am in debt. I have had a citi card since 2009 and have accrued a balance of 3,297.36. I haven't paid them for over a year and have ignored all phone calls.

Citi sent me a statement saying the entire balance is 3,297.36 and minimum payment is the same. I called Citi and put in my social security and they transferred me to NCO vendor. This guy offered me a 12 month plan of 274.78 or a settlement of $1000.

I have the $1,000 to pay, but I am confused from seeing so much information on the web. Is it bad to settle in this case? Will it be done with for good? Will it mess up my credit score even more?

He wanted me to pay it over the phone right there which sketched me out. Can someone please tell me what documents I should ask for and get signed before I give any money away?

The account is obviously within the SOL. If Citi referred you to NCO, then NCO is legitimately collecting for them. Settling is not bad. It can help avoid a lawsuit. Unless you could prove you don't owe the money, you'd be stuck paying more than $1000 once they add interest and attorney fees.

When I settled with a CA, I made sure, by contacting the OC, that the CA was legitimate. You've done that. I then requested the CA send me a fax ON THEIR LETTERHEAD containing the name of the OC, the OC's account number, the CA's account number, the amount of the settlement and, that once my check cleared, that the account was considered paid and settled.

Considering the account is within the SOL and Citi could sue, $1000 is a good settlement.

Link to comment
Share on other sites

Based on the facts you presented, I agree with BV80. I do find it way out of character for Citi to be offering that low of a settlement in full.

I'd be getting myself and iron glad agreement and release (trying to throw in a liquidated damages clause) before I released a penny and no way is the payment being done over the phone. It's certified funds only.

Link to comment
Share on other sites

Based on the facts you presented, I agree with BV80. I do find it way out of character for Citi to be offering that low of a settlement in full.

I'd be getting myself and iron glad agreement and release (trying to throw in a liquidated damages clause) before I released a penny and no way is the payment being done over the phone. It's certified funds only.

Thanks for your responses guys, I really appreciate it. So when I was on the phone with my man at NCO, he offered me the $1000 settlement and we discussed options for payment plans instead and during that talk he found out that I don't have a bank account. He told me to go get a prepaid visa card and call him back tomorrow. I hope that the offer stands, but I had no idea about settling at the time so I didn't accept it.

If the offer still stands, I should be asking for the faxed document described by BV80, and what exactly is liquidated damages clause?

Link to comment
Share on other sites

I mostly agree with BV80, Coltsfan et al, though on some points things are not as sketchy as you think. I understand your angst in dealing with them, as Ive been thru it recently.

Like maybe be careful, but dont be so paranoid about getting ripped off if you know the debt is yours and youve checked valid sources about it. I pulled a recent credit report and saw that NCO had one of my capital one card debts from 2006-2008. On a 1900.00 principal it had ballooned to 4590.00 (!). I ended up settling with them for around 1800.00. I made the collector read the letter he was faxing (my fax machine is spotty in receiving) so what he read said something like "NCO accepts settlement in full for the above Capital one account ending in XXXX" . And get all the names of the people you deal with as a last resort if something goes wrong.

My collector dude told me blah-blah hes been doin this 5 years and wouldnt risk his job. Another (NCI) told me I could sue them if they debited even a penny more than I agreed to over a Visa debit on the phone.

So the lesson is, if the debt is yours. You might want to take care of it to avoid costly litigation. I think 1000.00 is a good settlement.

Despite the bad reputation of CAs most will work with you in a relatively polite way if you want to settle. Just remain calm, use negotiating skills, after all it's just business.

I hate the payment plan thing, so I go for a lump sum to get the best deal I can.

Depending on where the debt was at (mine was way past due, charged off, and possibly could land in litigation so I took measures to take care of it asap). Some people say, "just call them up let them know whats going on that you cant pay it. Theyll make a note of it and work with you." Really its usually true.

However do everything you can to keep the negotiations going in your favor for the lowest settlements. They are going to be tough and difficult and make it seem like "the computer wont allow me, or my manager says i cant" then ask to speak to the manager, b/c often theyll have the power to lower your settlement...remember they are trained in negotiation as well, but remember the manager might be an even tougher negotiator, tho u can usually end up working with them.. hope this helps!

Link to comment
Share on other sites

Despite the bad reputation of CAs most will work with you in a relatively polite way if you want to settle.

Agree 100%. However, that is pretty much life in general. If somebody is getting their way and on top of that getting money on top of getting their way, they tend to be very professional and polite.

I worked insurance claims for years. When I was settling claims on the phone I can think of maybe a handful of times the other party was anything but over the top polite, if they were getting their way.

So I agree, you don't have to be paranoid to the point of psycho, but don't mistake them being nice as everything is on the up and up. I guess common sense needs and just "gut" feeling actually play a lot into the mix.

A liquidated damages clause just means if either party violates the agreement, the damages are set and don't have to be proven. Like getting a ticket for running a stop sign. You call the court and ask how much you need to send if you don't want to fight the ticket.

They just give you a price and don't ask about the facts or want an explanation. Running a stop sign is a $150.00 fine that is what you owe. If you have a liquidated damages clause in the contract say for 5K and they violate the contract, you only have to prove they violated the contract, not your damages are 5K.

Don't expect them to go for it. That is usually something you can push when you're holding the leverage.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.