waverlymike

Settlement Offer Letter Advice

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Hey I know there are many postings with stock settlement letters, but I just wanted to get an opinion on this one because I've read that it's almost better to make it "personal." Also, I wanted it to get through that this offer is all that I can afford. The debt is for $800.

 

A couple of months ago I sent a PFD request for $250. They called and said they would not do PFD or even Paid in Full. They would only do settled in full. At this point, I just don't want any more open collections on my CR. She also said $250 would not be enough. So, I said I would call back after I thought over my options. Would sending this following letter suffice? I really can only afford about $350 - $400 for this. Is there anything I should add/change/etc? Thanks in advance for advice.

 

Dear Donna Rose

 

This letter is a follow-up to a conversation we had recently regarding my account. I am working very hard to clear up my past financial transgressions and I would like to settle this debt. I am aware that your company has the ability to report this debt to the credit bureaus as you deem necessary.

 

Furthermore, you have the ability to change the listing since you are the information furnisher. I am willing to pay $350 to settle this debt in full. In return for my payment, you agree to report this account as settled in full to all of the credit reporting agencies within ten calendar days of payment. If you agree to the terms, I will send certified payment in the amount of $350 payable to NHNE CREDIT SERVICES. Furthermore, NHNE CREDIT SERVICES agrees to never at any time in the future place any information on my credit report.

 

For both of our convenience, I would like to take care of this as soon as possible. Unfortunately, $350 is the absolute maximum I am able to pay, as that is literally all that I have in my bank account.

 

If you accept this offer, you also agree not to discuss the offer with any third-party, excluding the original creditor. If you accept the offer, please prepare a letter on your company letterhead agreeing to the terms. This letter should be signed by an authorized agent of NHNE CREDIT SERVICES, IN.

 

Sincerely, 

 

(My name)

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For an $800 debt, you should really fight. Their investment in this debt is probably $30 at best. If you go the arbitration route you can easily scare them off. JMO

 

Have you been served or is this in collections still?

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It's still in collections. It's the last open collection on my credit so I want to take care of it. I got my credit report and am going over everything. It's definitely a valid debt and from what I remember, they didn't buy it, they are just representing the original creditor.

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It's still in collections. It's the last open collection on my credit so I want to take care of it. I got my credit report and am going over everything. It's definitely a valid debt and from what I remember, they didn't buy it, they are just representing the original creditor.

 

OK, still with the OC. I wouldn't pay a JDB a dime.

 

Your letter looks fine to me and, as it is outside the SOL, you would think they would jump at it.I would consider putting in your letter that you are aware that it is outside the SOL. That tells them that you are aware that they cannot take legal action. They want to get paid more than they want to keep reporting this, and once they realize it is this or nothing, they may take it. If they think they can bully you into paying more by threatening legal action they'll keep squeezing (even if their threats are implied keeping them out of FDCPA trouble).

 

JMO

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As I'm in New York, is there a different SOL on when they can sue for something? I just thought it was the same 7 years as the reporting period.

 

Damn, sorry. I thought I saw it was outside the SOL. I'm getting bad about confusing threads lately. Gotta slow down.

 

No, NY is 6 years on credit card debt. I think NY might have a borrowing statute where you can use another state's SOL if they are located in, say, Delaware (a lot of banks are) where the SOL is 3 years. Bruno is good with the borrowing statute. Living in DE I've never had to deal with it.

 

In that case, I'd say your letter looks good. I wish you luck!

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Interesting. Last question. If the collection agency is based out of NH, the original creditor (Best Fitness) corporate HQ is in MA, the entity that I originally owed to was in NY (Best FItness), which SOL do you think would apply?

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Usually it's in the state where you resided when you incurred the debt.  Though there is some case law that says whatever is in the contract as far as governing laws holds true.  

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So should I not try to negotiate a settlement with this collections agency (New Hampshire/Northeast Collections Services) then? I was going to send the letter tomorrow.

 

It is up to you but make sure, if you do this, before you pay one thin dime, you get something in writing that says this debt is satisfied in full. You've read it before here. If it's not in writing, it didn't happen.

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If your dealing with a JDB and not the OC, I wouldn't. They probably paid twenty dollars for your debt. Is it past the SOL? If so, I would send them a C&D letter. If you pay anything, it will either restart or extend the SOL.

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It makes it harder, the fact that your dealing with a CA. IF you wanted to try and settle this I would directly to the OC and NOT the CA and see what you could work out. How close are you to the SOL?

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By the way, is this true?

 

"Insist that the debt collector remove all negative information from your credit report in return for your lump sum payment. If this does not occur, your credit score will go down after your settlement is paid. The reason for this is because the more recent a debt is, the greater the impact that debt has on your credit score. By paying the settlement, you are bringing the negative account current and it will count for more than it did when you were not making payments."

 

It's from an "ehow" so don't know if I should believe it.

http://www.ehow.com/how_5472027_negotiate-settlements-collection-agencies.html

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You can insist, but they may not go for it.  That's when you start threatening to sue for inaccurate credit report reporting.  (If they can't prove you owe the debt and they are legally able to collect in court, you may have a case against them).  

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I have the same thing going on and people keep telling me not to pay. Mine is for 1,450.63 and that is with interest late fee's ect.. Mine is with Midland. I am looking into my options as of now I am being sued for another alleged debt and have retained a lawyer today.I have not been served but called the county clerk and sure enough I was being sued. They just served the wrong house. My lawyer said he contacted the other party (cavalry) lawyer's and they dropped it. I have nothing yet stating it in writing but he said by Wed or Thurs. And I should not get served. If I do just forget it. That was 500.00 for me to do. I may send them a letter asking to see proof of the debt from Midland first and kind of play cat and mouse to see if they have anything. At this point they are not suing me so what could it hurt?

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I would wait a few days for your attorney to get the paperwork showing the lawsuit is dismissed.  That paperwork should come from the court clerk office and signed by a judge, or something similar.

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I have the same thing going on and people keep telling me not to pay. Mine is for 1,450.63 and that is with interest late fee's ect.. Mine is with Midland. I am looking into my options as of now I am being sued for another alleged debt and have retained a lawyer today.I have not been served but called the county clerk and sure enough I was being sued. They just served the wrong house. My lawyer said he contacted the other party (cavalry) lawyer's and they dropped it. I have nothing yet stating it in writing but he said by Wed or Thurs. And I should not get served. If I do just forget it. That was 500.00 for me to do. I may send them a letter asking to see proof of the debt from Midland first and kind of play cat and mouse to see if they have anything. At this point they are not suing me so what could it hurt?

 

:multibounce:  :PartyTime:

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