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coolchicka

Countered a settlement offer with OC, received strange response

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I have two CC's that are owned by the same bank, Comenity Bank. I did a little research and apparently World Financial Network Bank is now Comenity Bank, so I'm dealing with the OC on this.  I received a settlement letter for both credit cards separately late November of last year. I got wrapped up in the holiday madness and didn't get around to responding until the beginning of this month (they gave me 45 days to respond). I sent them a separate letter for both accounts countering their settlement offers for lower amounts. My letter was along the lines of this:

 

Representative:

I received your letter regaring account ###-####.  I am happy you are willing to negotiate a settlement wtih me on this account, however the amount you mentioned I can't afford at this time.  I am just getting back on my feet after a long period of financial distress, and I am borrowing funds from a family member to get back on track. Instead I can pay you $xxx.xx instead to settle the account in full.  Also, I would request that any negative items be removed from my credit report upon payment.

 

Currently, I am in negotiations with several other creditors for similar types of settlements and have only limited amount of money available.  I have decided to settle only with those that meet mutually agreed upon terms and conditions with me. 

Please be advised, that I will not make a payment, unless upon written confirmation of this settlement, sent to the address above.  I sincerely would like to settle this debt and have it paid off.

 

Once I receive a settlement letter from you, I will make the first payment within 15 business days.  If you find these terms and conditions acceptable, please forward to me, a final agreement.  Upon receipt of this agreement, I will forward you the stated amount through cashier’s check or money order.

Thanks,

 

They responded with a very vague letter stating something like this:

 

We received your letter and are here for you in your time of need. We value you as a customer and would like to continue receiving your business.  Your account has been noted accordingly.  If you need to contact us, please use the address indicated below.

 

Thanks.

 

That was all they said. They didn't say whether they accepted or rejected my counteroffer, and they didn't say whether they were even still handling the account!  I want to respond back to them, but at this point I don't know what to say.  Does anyone have any thoughts on this?

 

Thanks!

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First thought. It would have been better if you sent a DV letter certified mail first.

 

If they could not provide validation the point would be moot.

 

Second Thought - Let it sit for a while now that you sent the offer. Who ever is handling the account will respond in time.

 

If you get another collection letter absent acknowlegment of the offer you sent then resend it certified mail.

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First thought. It would have been better if you sent a DV letter certified mail first.

 

If they could not provide validation the point would be moot.

 

Second Thought - Let it sit for a while now that you sent the offer. Who ever is handling the account will respond in time.

 

If you get another collection letter absent acknowlegment of the offer you sent then resend it certified mail.

 

The poster is dealing with the OC.  They don't have to respond to a DV.

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Actually, if "World Financial Network Bank is now Comenity Bank" that could imply that the debt  is now in the hands of a JDB.  Since I've never heard of either one, I honestly don't know...but, its quite possible that WFNB doesn't fit the criteria for an OC.

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Actually, if "World Financial Network Bank is now Comenity Bank" that could imply that the debt  is now in the hands of a JDB.  Since I've never heard of either one, I honestly don't know...but, its quite possible that WFNB doesn't fit the criteria for an OC.

 

I did a google check on Comenity Bank.  I found several sites that specify that Comenity is formerly World Financial Network National Bank (WFNNB).  Back when I was able to  make my CC payments in a timely manner, WFNNB was the bank that processed the payments. So I'm pretty sure Comenity is the OC now.

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I did a google check on Comenity Bank.  I found several sites that specify that Comenity is formerly World Financial Network National Bank (WFNNB).  Back when I was able to  make my CC payments in a timely manner, WFNNB was the bank that processed the payments. So I'm pretty sure Comenity is the OC now.

https://en.wikipedia.org/wiki/Alliance_Data

Alliance Data was formed from the December 2, 1996, merger of two entities: J.C. Penney's credit card processing unit and The Limited's credit card bank operation, named World Financial Network National Bank.

 

http://www.comenity.net/comenity/

...

To make it even easier to find us, we've changed the names of our two banks: World Financial Network Bank is now Comenity Bank, and World Financial Capital Bank is now Comenity Capital Bank.

...

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=36704

Consumer Wins Lawsuit Against World Financial Network National Bank for 56 Harassing Robo-Calls

BBB review: http://www.bbb.org/centralohio/business-reviews/credit-cards-and-plans/comenity-bank-in-columbus-oh-6558

 

I agree, smells like an OC to me. I send OC DV letters to their DC attorneys when I get that lawfirm letterheaded collection letter.

I would only do lump sum one-time payment and never make payment "arrangements" due to what I would call a severe lack of trust with these types of businesses. I think settlements should be in writing and include a disclaimer about being made in good faith and not for use in litigation, etc. If Comenity Bank finds the settlement amount offered insufficient they may bring a lawsuit. In that case I would fight any lawsuit.

 

As far as them not being in a rush to respond to a specific counteroffer I would probably not be in a rush either. If it was me I would view their letter as non-responsive and await something more serious.

 

It appears that at least some of the WFNNB agreements had an arbitration clause: http://www.consumerfinancelitigation.com/uploads/file/Zarandi%20v_%20Alliance%20Data%20System%20Corp%205-9-2011.pdf

 

Then again...

THE ILLUSORY ARBITRATION AGREEMENT

ALLIANCE DATA SYSTEMS CORPORATION v. Whitmire, Tex: Court of Appeals, 9th Dist. 2012

http://scholar.google.com/scholar_case?case=4397219987023276886

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Well, I never heard back regarding the other settlement letter for the other CC, either.  Instead, about a week later, I got a letter from an CA about one CC account and a letter from a different CA about the other CC account. So, they basically took my settlement offers and threw them in the trash--no rejection or counter-offer.

 

I plan to send the CA's the same settlement letters that I sent to the OC...but first, I'd like to know this...am I really wasting my time?  Is something wrong with my settlement letter? (see my originaly post above)..

Are my settlement offers not good enough..too low maybe? I tried to stay within the 25%-30% range-- First CC balance is $856..I offered $225 to settle..Second CC balance is $750..offered $200 to settle. Anything else I should be doing?

 

I'm about at wits end with these people!  Please help!

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It's been a while, but I'm back with an update on this issue (and more questions).

 

I went ahead and sent settlement offers to both CA's I mentioned above.  One CA calls me about 4 times a day..leaving me messages to call back. They have yet to send me anything written in the mail of countering my settlement offer or anything..just annoying phone calls.

 

The other CA finally responded (a whole month later) offering me a settlement for 50% of the balance (I'm guessing this is a counter-offer to my offer of 25% of the balance) and I have exactly 7 days to pay.  The letter they sent mentions nothing of the account being 'settled in full upon payment'.  It just says how much I need to pay and when I need to pay it by.  Their offer is more than what I wanted to pay ($350--I offered $200), but I feel this might be my last chance to get rid of this debt before it (possibly) gets sent to an attorney's office.

 

My question:  Should I call them up and request they send me a letter clearly stating "this account will be considered settled in full when payment is received"?  I would write them back asking this, but the letter won't make it in timeframe they are asking for payment and I'm afraid they might just scrap the settlement offer altogether. I'm trying to get these folks off my back!

 

Any help is appreciated!

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find the CA's fax number and send them a Universal Data Form filled out for them only to sign and mention it cannot be the collection agent but atleast a higher authority of the collection agency/OC?

 

That will get their attention!!!!!!! look up what a Universal Data form is/

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coolchicka, you have all the time to settle in the world with the ca/oc doesn't. DO IT RIGHT THE FIRST TIME, AND ITS A LIFE TIME OF PEACE WITH YOURSELF.

KEEP A HANGING CHAD/KNIFE OVER YOUR HEAD AND YOU WILL FEAR FOREVER WHAT MIGHT HAPPEN? Nothing is true if its not in writing and signed by BOTH PARTIES TO THE AGREEMENT.

 

KNOW YOUR OPTIONS!!!! ACT ON IT.

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It's been a while, but I'm back with an update on this issue (and more questions).

 

I went ahead and sent settlement offers to both CA's I mentioned above.  One CA calls me about 4 times a day..leaving me messages to call back. They have yet to send me anything written in the mail of countering my settlement offer or anything..just annoying phone calls.

 

The other CA finally responded (a whole month later) offering me a settlement for 50% of the balance (I'm guessing this is a counter-offer to my offer of 25% of the balance) and I have exactly 7 days to pay.  The letter they sent mentions nothing of the account being 'settled in full upon payment'.  It just says how much I need to pay and when I need to pay it by.  Their offer is more than what I wanted to pay ($350--I offered $200), but I feel this might be my last chance to get rid of this debt before it (possibly) gets sent to an attorney's office.

 

My question:  Should I call them up and request they send me a letter clearly stating "this account will be considered settled in full when payment is received"?  I would write them back asking this, but the letter won't make it in timeframe they are asking for payment and I'm afraid they might just scrap the settlement offer altogether. I'm trying to get these folks off my back!

 

Any help is appreciated!

 

Just wondering how this all ended up?  Did you send the Universal Data Form?  Did they ever reply in writing and send it back?  I am getting ready to send a letter accepting their settlement offer and I'm wondering if I should be sending this UDF with it?  Thanks!

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Sorry - totally new at this!  Didn't mean to edit your post...

 

I was wondering how this all ended up for you?  Did you send the Universal Data Form?  Did they ever replay in writing and send it back?  I am getting ready to send a letter accepting their settlement offer if they send me written confirmation of the agreement; wondering if I should be sending this UDF with my letter?  Thanks!

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