coolchicka

Portfolio nightmare begins..

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That was just our opinions above. You have to do what will work best for you. Since you want to settle the main thing you need to do is make sure everything is lined up properly. The people you are dealing with are not to be trusted. That is why you need to make sure everything is set in stone legally before you give them a dime. That is why I suggested you contact Neweuquol in the above post. He has experience in your state. 

 

Good Luck!

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Send the DV to the attorney. They are acting as a debt collector and must follow the rules. That will buy you at least 30 days.

If the attorney answers the DV, I hope you can up the amount of settlement a little bit (say to 30% or 35%). If they file suit. Answer it anyways and start discovery at the same time work on a settlement with the attorney. The attorney will respond to your settlement offers because the courts frown on attorneys who do not negotiate. The attorney also cannot use your willingness to settle against you. Whatever you do however, just don't admit to the debt. Just a statement like "In the interest of time and expense,I propose to settle this case for ..... without admitting that I have done anything wrong."

Make sure to get everything in writing however and no access to your accounts as these people lie

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I'm in the same boat but the CA sent me a letter saying they were going to sue me. I never received any settlement offers from this firm,just form letters asking for all of my financial info which of course I ignored. I just sent them a DV letter this morning so we shall see. You can always call the original creditor and speak with a manager in their credit dept. to see if the OC still owns your account. If they do they may be willing to negotiate with you. When I called BOA they told me mine was sold to a law firm in Georgia  and they no longer had the acct. Good Luck! A friend of mine gave me good advice the other day-"Don't panic! They can send you to court but not to jail for not having enough money to pay."

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I always like to try to settle. Opposing never seems to find my terms acceptable. I suppose they want money from me. ;-)

 

I am not willing to pay 1k (or a couple of hundred) to stay out of court. I loathe going to court because it always seems to be three against one. The plaintiff, their counsel, and the judge vs. me. I need the money more than opposing so I will go when need be.

 

Each person needs to figure out what is best for them. I cannot see paying a JDB more than $0 but have only been sued by OCs.

 

As I posted previously, "Paying a JDB anything sounds like too much money to me." That's for me. Having been trained in litigation by some of the biggest OC's attorneys I would be more annoyed by a JDB lawsuit (if I did not have FDCPA violations documented) than threatened.

 

I am not scared of the phone and will pick it up on occasion to shoot the breeze with the occasional debt collector (helping to ensure their compliance with federal and state laws and discover what it is they want and who they are.) Yet, I would never call a JDB to negotiate a settlement nor recommend anyone take their chances doing so (always in writing). I would much rather take my chances in court with the lying cheaters. On a phone settlement it is highly unlikely I would get the settlement I bargained for actually implemented and now they hold all the cards. They also hold some of my money, probably re-aged the debt on my credit report so it hangs out there another 7.5 years, and surprise they can still sue if I had an emergency that caused me to miss a payment. All downside no upside.

 

If I was willing to commit to a payment plan I believe I would be the exact "mark" these clowns are always fishing for. It *could* work out but I would be afraid the odds are too long. I don't fear a lawsuit with these clowns but I would be very afraid to negotiate a settlement via the phone and more so with multiple payments. YMMV

 

Someone good with numbers could likely give better insight to the report (link below) but my reading indicates that the CC debt buyer "big boys" are paying no more than about a nickle for face value of debt. One would think at 5% they have some negotiating room especially if they believe a defendant is going to be a costly one to fight in court.

http://www.ftc.gov/os/2013/01/debtbuyingreport.pdf
pdf pg 64: Credit card Acquisition Expenditures (n) - Per $ of Face Value $.05224
pdf pg 65: (n) Acquisition expenditures per dollar of face value figures were calculated by summing the amount paid for each portfolio across all portfolios of the same type and then dividing by the relevant total face value as described in (m), above.
pdf pg 66: In 2011 PRA was #3 for "Firm Rank for Direct Purchases of Credit Card Debt (by Face Value)
pdf pg 67: Sample Characteristics of Debts Purchased by Six Debt Buyers - Debt acquired from: Debt Buyer - Average Price Per Dollar of Debt $.029

 

Everybody get's a timely and customized DV letter from me, especially law firms. Having settled an FDCPA claim with a CA where the DV letter was the tool that allowed for the positive result I just can't help myself. :)

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I don't think you made a mistake by offering them money.  You are not telling them this is your debt by making them an offer.    

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I don't think you made a mistake by offering them money.  You are not telling them this is your debt by making them an offer.    

 

Legally right.  But this can still change their perspective by believing the "debtor knows".  No rights are lost.  But chances of cooperation by the JDB are reduced.

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I went ahead and gave the law firm a call.  Strange though..even though they claim to be a law firm, they sound a lot like a CA.  I told them how I had offered a settlement amount to the CA but didn't get a response...instead got a letter from their law firm.  I them asked if I could settle with them. He said he would submit my offer back to them, but he was more than positve they would counter my offer since they generally like to see you settle for at least 85-90% of your balance. This sounded really weird to me because there's not much difference between that and the whole amount of the bill! He then said he would let me know within 72 hours whether it was accepted or not.

 

Has anyone ever heard of this...a law firm submitting a settlement request to a CA?  Maybe they can since they a collecting on behalf of the CA?  I'm not sure what this guy is going to come back and say 3 days from now, but I hope its not that I'm getting sued!

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After going back and reading your original post I would like to clarify a few things since very few details are revealed.

 

You are dealing with PRA which is not a collection agency. They are a debt buyer and have purchased this debt with a bulk of other loans. Assuming the amount is around 1,000. they paid around $25.00 -$30.00 for it. They have also probably added interest and fees to the amount which may or not be legal.

 

The law firm you are dealing with may be a real law firm/collection agency or more of a just a collection agency. Even if you settle I see no reason to pay these people anywhere near 80% - 90%. You may find yourself in deeper if you pay these people anything. 

 

As I stated in an earlier post you should talk with the poster below. He is a legal professional in your state and may be able to point you in the right direction. 

http://www.creditinf...6293-neweuquol

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Typical junk debt buyers ask for 25% to 40%.  They are seeing you as a mark if you willing to even think about anything over 50%.  Just let it sit for a year and they will put the account back into the regular pool and send you a 30% offer next year.  That's the rate they typically use for people that aren't willing to pay.

 

But by all means do not pay any fractional amount, and do not set up any payment plan.  These will reset the SOL.

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You know, I'd like to get back to how they validated.  Did they just send a letter saying we validated your debt and you owe us this much or did they actually do what was legally required.  I suspect that by sending it out to the attorney with the typical non-validation these JDBs do that may be a violation.  The question would be can the OP go back and sue once she had made the settlement offer OR hasn't followed up with a letter stating they havn't met the legal minimum of validation.

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After going back and reading your original post I would like to clarify a few things since very few details are revealed.

 

You are dealing with PRA which is not a collection agency. They are a debt buyer and have purchased this debt with a bulk of other loans. Assuming the amount is around 1,000. they paid around $25.00 -$30.00 for it. They have also probably added interest and fees to the amount which may or not be legal.

 

The law firm you are dealing with may be a real law firm/collection agency or more of a just a collection agency. Even if you settle I see no reason to pay these people anywhere near 80% - 90%. You may find yourself in deeper if you pay these people anything. 

 

As I stated in an earlier post you should talk with the poster below. He is a legal professional in your state and may be able to point you in the right direction. 

http://www.creditinf...6293-neweuquol

Thanks for referring me to the poster.  I acutally sent him a PM..just waiting to hear back from him.

But I still wanted to at least contact someone at the law firm to see what they would say.

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You know, I'd like to get back to how they validated.  Did they just send a letter saying we validated your debt and you owe us this much or did they actually do what was legally required.  I suspect that by sending it out to the attorney with the typical non-validation these JDBs do that may be a violation.  The question would be can the OP go back and sue once she had made the settlement offer OR hasn't followed up with a letter stating they havn't met the legal minimum of validation.

When they validated they sent me some documents with the original creditor name, and all the information related to the account. I thought that served as a valid, so that is why I typed up an offer of settlement. I waited for a counter-offer.  Instead a few weeks later, I get a letter from an attorney.

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Hello coolchicka,

I am dealing with PRA in NJ and am about to senda DV after recieving a Second Notice stating my account would be passed to legal for possible litigation.  I read throught the thread and was looking for an update.

Where are you in the process if I may ask?

My debt is much larger ($7k) and I have 3 settlements I already completed last year listed on my credit report (all between 20% and 40%), and 2 more left including this one.

 

I cannot afford to pay anything now though so I am looking to buy time and ideally settle at a later date or see if they violate law somehow in meantime. 

Any status on your case?

 

Thanks

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