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Settlement agreement negotiations


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In good faith, I'm negotiationg with a couple banks for credit card debt. I've gotten acceptable offers on amount.

 

However, they won't allow me to include any stips in the agreement such as not selling the remaining balance off etc.

 

Is a standard settlement letter stating the account was settled and will have a zero balance, enough proof in court later on if this debt was to resurface?

 

I can't imagine a judge being too happy with a debt collector double dipping. 

 

 

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Here is what can happen.

 

1. You pay them money for a "settlement" (I'm assuming this is to the original creditors)

 

2. The SOL gets reset for another 6 years.

 

3. They sell the remaining balance to a JDB 

 

3. The JDB sues you for more than the original amount 

 

4a. You either fight the JDB and win while taking a lot of your personal time and effort.

or

4b. You do another "settlement" and then who knows.

or

4c. You get a judgement against you for the full amount. (which could drag out for another 10 years)

 

So in this scenario a 1,000 balance can end up costing you 2,000 or more. I've heard way too many stories that end this way. 

 

Do what you want, but never take their word for anything unless you have it in writing and a legal expert has reviewed it. 

 

Good Luck

AV

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Here is what can happen.

 

1. You pay them money for a "settlement" (I'm assuming this is to the original creditors)

 

2. The SOL gets reset for another 6 years.

 

3. They sell the remaining balance to a JDB 

 

3. The JDB sues you for more than the original amount 

 

4a. You either fight the JDB and win while taking a lot of your personal time and effort.

or

4b. You do another "settlement" and then who knows.

or

4c. You get a judgement against you for the full amount. (which could drag out for another 10 years)

 

So in this scenario a 1,000 balance can end up costing you 2,000 or more. I've heard way too many stories that end this way. 

 

Do what you want, but never take their word for anything unless you have it in writing and a legal expert has reviewed it. 

 

Good Luck

AV

I dont see much choice.  They won't budge.  As long as I have in writing before I pay them, that settlement for the amount on the account will consider it paid in full, I think I am ok with that.

 

I'd feel much more confident fighting post settlement as oppose to pre settlement.  Bring on the JDB's!  I've already cashed in on them a couple times for violations.

 

It's these two OC's im working on now.

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I think you are going to be good to go if you just have the agreement in writing.  Kudos to you for doing such a good job of negotiating!

 

So do you think it will be OK if he signs the agreement without getting the written stipulations he is asking for?

I'm not sure why they would not include that in order to get the money.

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So do you think it will be OK if he signs the agreement without getting the written stipulations he is asking for?

I'm not sure why they would not include that in order to get the money.

I'm not sure either.  Very frustrating.  They have been quiet for months, and left me alone after I elected arb and here I am calling them up offering money as oppose to them getting nothing because even if they spend thousands to follow me into arbitration, and then win, they will still get nothing because Im disabled with no assets. 

 

Are they stupid or just too lazy to modify their standard settlement letters?

 

I'm not going to worry though.  As long as it says settled in full, and they send it before receiving payment, I'll do it.

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Discover just told me the account is handled by TrakAmerica and when I told them the name of the CA that has been dealing with me, they just referred me to TrakAmerica.

 

Whats up with this?  Who are they and why is Discover referring me to them and not the CA that has been sending dunnings.

 

Discover still owns the account per my credit reports.

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Discover just told me the account is handled by TrakAmerica and when I told them the name of the CA that has been dealing with me, they just referred me to TrakAmerica.

 

Whats up with this?  Who are they and why is Discover referring me to them and not the CA that has been sending dunnings.

 

Discover still owns the account per my credit reports.

 

This doesn't sound good. TrakAmerica is one of those companies that is very vague as to what it is. I'm not sure if its a CA or JDB or other. At least if you deal with the mafia you know who you are dealing with. You might actually be giving your money to a debt buyer that Discover may have sold the debt to. Your credit report is not always going to include up to date details like this. If Discover refuses to deal directly with you under the terms you included I would walk away. You may give these people money and the scenario I listed above will start. I would rather just deal with a lawsuit as opposed to giving my money to someone I don't know while hoping it all goes away.

 

I would be very careful here because I see no reason why Discover would not have taken your money unless they no longer own the account. Are these the same people who refused to change the contract? Who is the other bank? 

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This doesn't sound good. TrakAmerica is one of those companies that is very vague as to what it is. I'm not sure if its a CA or JDB or other. At least if you deal with the mafia you know who you are dealing with. You might actually be giving your money to a debt buyer that Discover may have sold the debt to. Your credit report is not always going to include up to date details like this. If Discover refuses to deal directly with you under the terms you included I would walk away. You may give these people money and the scenario I listed above will start. I would rather just deal with a lawsuit as opposed to giving my money to someone I don't know while hoping it all goes away.

 

I would be very careful here because I see no reason why Discover would not have taken your money unless they no longer own the account. Are these the same people who refused to change the contract? Who is the other bank? 

Looks like TrakAmerica just outsources accounts for banks.  It's not uncommon for the OC to refuse to handle the account if it has already been placed with a CA, even though the OC may still own it.  It is strange though that they don't know which CA is being used.  But I did read a complaint on a Budd Hibbs page regarding that very thing, that TrakAmerica, as the middle man, doesn't like the CA communicating directly with the bank.

 

The other bank is Chase.  I've always heard they are the most difficult, but they were extremely easy to deal with.  They said if we come to an agreement, they will mail me the agreement and then I send in the funds.  I haven't agreed just yet, as I didn't want to make any rash decisions, but I plan on calling back and accepting the offer, or a lower one, if they are agreeable.

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Well I was wrong about Chase.  They want funds first then the agreement letter will be mailed.

 

If they breach our verbal agreement and don't mail the letter, and apply the payment toward the balance instead of settling it, do I have any recourse?

 

I will have it recorded.  I'm NY and the rep is in Texas, both one party recording.

 

Would there be private right of action to sue for breach if they were to do that?

 

I haven't agreed to anything yet.

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I found it best to always have a tenative written agreement in hand, prior to releasing any funds at all. Once you pay any amount you lose any leverage that you have.

Better to let them bring a suit to collect than you chasing a Big Bank, after your funds are gone.....

Take those funds you planned on settling with Big Bank, set aside and save and eventually, your case will get to someone who wants the funds, and will supply a written agreement of settlement. If may not be the Big Bank, it may happen after it is sold.

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I would at the least take the advice of Racecar in post #7.

 

Without a written guarantee of your terms with a legal review I would not give them a dime. Once you do then you have no leverage and you have no way of knowing what other actions they or someone else might take in the future. 

Will that legal aid.org contact the creditors for settlements for me?  Or simply review a settlement offer?

 

I just need Chase to put an agreement in writing.  Should I keep calling frequently and go higher up until I get someone willing to fax me an agreement before payment?  Or should I just let it be and try to wait out the SOL?  What would you do?

 

Chase is my last debt (yesterday settled with the other OC), and you can imagine my eagerness to be done with it. 

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Those who are eager will pay more to settle, than those who are paitent. Chase is a mega bank and has process and system that don't move easily. Unless you are in a hurry because you need to settle these, keep setting the money aside.

Over 4 years using numerous strategies I settled $70K across 14 accounts for 12.5% of the total debt.

This took time and learning. If I had the money and was in a hurry I could have paid 50% or greater.

The choice is yours and the amount you are willing to spend.

What works best for you and your family is what is important....

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I would at the least take the advice of Racecar in post #7.

 

Without a written guarantee of your terms with a legal review I would not give them a dime. Once you do then you have no leverage and you have no way of knowing what other actions they or someone else might take in the future. 

This is so true.

 

Once they have your money they can change whatever you agreed to in a heartbeat and even

if you do have a recording of what is said, they can claim that the person who said it

did not have the authority to do so.

 

If they are unwilling to send a proposed written settlement, by mail, for you to sign and

return with your payment see if you can get them to move into email mode.

 

That would have a little more substance of a legal record to it.

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Those who are eager will pay more to settle, than those who are paitent. Chase is a mega bank and has process and system that don't move easily. Unless you are in a hurry because you need to settle these, keep setting the money aside.

Over 4 years using numerous strategies I settled $70K across 14 accounts for 12.5% of the total debt.

This took time and learning. If I had the money and was in a hurry I could have paid 50% or greater.

The choice is yours and the amount you are willing to spend.

What works best for you and your family is what is important....

Well done. ::punk::

 

I will work on the patience.  I'm only two years in. 

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Will that legal aid.org contact the creditors for settlements for me?  Or simply review a settlement offer?

 

I just need Chase to put an agreement in writing.  Should I keep calling frequently and go higher up until I get someone willing to fax me an agreement before payment?  Or should I just let it be and try to wait out the SOL?  What would you do?

 

Chase is my last debt (yesterday settled with the other OC), and you can imagine my eagerness to be done with it. 

 

This is one of the reasons I always tell people to always communicate with any (alleged) creditor ONLY in writing, including settlement negotiations, right from the beginning.  When they send the first dunning letter, answer (if appropriate to answer) ONLY in writing (by CMRRR if there is any chance the fact that they got it might need to be presented to court).  NEVER call by phone for anything.

 

Once communications gets rolling by phone, it will be very hard to move it to communications by writing.  And they will always refuse to send those "legal terms" in writing.  It might not be because they are trying to hustle you.  It could simply be they don't want to do things that cost more once they have you "on the line".  But, given how extensively the "big banks" have been lying to the public and government, I personally would not trust any of them.

 

FYI, based on personal experience with Chase, I know there are at least a few good people working there.  But I also know they move on fairly quickly out of frustration.

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