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Do I take this settlement with Credit First NA?


Sunflower1999
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I have an account with Credit First NA (original creditor) that has been charged off nearly 2 years ago. I owe $1,072 and last month they sent me a letter saying they would settle it for 50%. I then sent them a settlement offer letter (this is the first contact I've had with them in 2 yrs) offering $125 and requesting they remove it from the credit reporting agencies. They sent me a letter back confirming the 50% settlement offer and stated that "upon receipt of the payment, we will notify the credit bureaus that your account has been paid in full as a charged off account". Although the letter is confusing because it's dated March 1, 2012 and it confirms the setlement offer for thiry (30) days. Then the next sentence states that it's only valid if amount is received in full by March 9, 2012. I'm new to debt settlement and have 5 other charged off accounts to settle: 2 with Cap One at $11,000 each, 3 with CA's at $15,000, $5,000 and $1,000. Since this debt is with the original creditor, does this seem like it's probaby the best I can do? Do I contact them regarding the actual date the payment is due?

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Impossible question to answer without know a ton of details. There is no formula. Generally speaking a creditor is going to try and squeeze as much out of you as possible. That means if getting 5% due to the something is better than nothing theory, they will do it.

If they think they can sue you and get more, they will do that. They will likely look into your finances, property, if you have a job or your expected to come into money soon.

WARNING-

Not telling you not to settle. However, you have some creditors out there with large balances and one of them is sue happy (Cap One). You make this deal and your credit report gets updated (by the way they did not agree to take this off your report, they just agreed to follow the law and mark it as a paid charge off) expect those other creditors to come after you hard.

They know you have money to pay and are willing to part with that money. I'd try to settle the ones first that might sue you. You don't want to settle a few only to find out the others won't work with you, sue you, and you have to possibly file BK.

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