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settlement letter from CA


finaldebt
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I hope to get some advice on how to proceed with settlement letter I received from collection agency, initially I discussed a settlement over the phone, they agreed on 20% and emailed me what looks like an official letter.  The letter has their logo and address on top and starts with original lender name, accnt number and amount owed, then it says

 

Total Settlement amount: $1200

First 6 months payments: nothing here

Payment due: $1200

 

Once full payment has been received and the monies have cleared the banking system, this account will be considered "Settled with no
further obligation."

 

Some more text, blah blah blah... and finally it says:

 

Sincerely,

John Doe

XYZ Company LLC

 

NO SIGNATURES?! Is this okay to pay them without seeing any signatures on the letter?

 

Thank you for your help, and for this great forum!

Mark

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It would be really helpful if you at least list the original creditor, and the collection agency it might well be out of Statute of limitation and you are just getting into more trouble. Also electronic communications might not held in court in the event they scam you, so demand a letter sent to your address mail fraud is a serious offense.

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We need more information in order to give you sound advise. We need to know such things as

 

Original creditor

Date of last payment

Name of the collection agency

 

Things you should know...if the statement was made by a collection agency it is a lie. These agencies will tell you it is paid in full as far as they are concerned, but they are notorious for doing this, collecting what ever they can, seeing they only paid a few cents on the dollar for the debt, and then they sell the balance to the next collection agency.

 

Also be ready for them to send you a 1099 for the balance, as it is considered taxable income to the IRS.

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Attached is their letter, original creditor is FIA Bank of America, last payment made 2 years 9 months ago, original amount owed is $6000. CA agency is Cavalry Portfolio Services in New York, willing to settle for 20% on the phone ($1200), and sent me this offer letter by email (attached).  What are your thoughts? I have the money orders ready, just a bit skeptical about their letter, would you trust it?

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Call them and ask them for a letter on your mail, keep them busy for the next 3 months, at 3 years the debt will be outside the statute of limitation, that means that if they sue you go to court and rise SOL as affirmative defense, or do a motion to dismiss. FIA is a subsidiary of Bank of America, that has Delaware as choice of law, I do not have the case law in front of me but I'm 99% positive that NY will honour Delaware SOL as substantive, you might wanna ask on the legal forum to see if someone points the case law. Just drag them 3 months DO NOT MAKE PAYMENTS, DO NOT ACKNOLWDGE everything, just run around for 3 more months and you're good to go.

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Call them and ask them for a letter on your mail, keep them busy for the next 3 months, at 3 years the debt will be outside the statute of limitation, that means that if they sue you go to court and rise SOL as affirmative defense, or do a motion to dismiss. FIA is a subsidiary of Bank of America, that has Delaware as choice of law, I do not have the case law in front of me but I'm 99% positive that NY will honour Delaware SOL as substantive, you might wanna ask on the legal forum to see if someone points the case law. Just drag them 3 months DO NOT MAKE PAYMENTS, DO NOT ACKNOLWDGE everything, just run around for 3 more months and you're good to go.

 

Thanks for your suggestion, my situation is a bit different, I will be moving out from NY in a month and want to settle some debts before I leave, I don't want to come back to NY for summons... It is true SOL for FIA BOA is 3 years in NY, unfortunately it will cost me more if I have to visit NY again just to prove that in court, I missed this chance.  I called them today to confirm that the letter is legit even thought its not signed, the guy said that this is their standard settlement letter (without signatures).  Should I send them my own settlement letter with my demands and a place for them to sign?  I just want to resolve this quickly..

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Yes a signed letter would be better. Now according to the FDCPA they can't sue outside of the county you live in, so that said, you can inform them of your new address as soon as you move and if they sue in NY that would be a violation, and you can move the lawsuit to your new county, and countersue them for the violation, just play with them for 3 months, you don't have friends etc in NY? if so just say that you live there for the next 3 months there's no way they can prove that you didn't, and at 3 years you tel them you move, so the debt is SOL.

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Yes a signed letter would be better. Now according to the FDCPA they can't sue outside of the county you live in, so that said, you can inform them of your new address as soon as you move and if they sue in NY that would be a violation, and you can move the lawsuit to your new county, and countersue them for the violation, just play with them for 3 months, you don't have friends etc in NY? if so just say that you live there for the next 3 months there's no way they can prove that you didn't, and at 3 years you tel them you move, so the debt is SOL.

I'm just moving out of state, but i will be resident of NY for 3 months, so they might be able to sue me and I will have to come back to NY to prove that SOL, it will cost me the same in travel expense and time wasted... I will be all the way on west coast.. unless there is a way to transfer the lawsuit to my new state even thought I am still resident of NY.  I could indeed drag for couple of months, demanding they sign my settlement letter.  Thanks for the advice, I will think about it more, $1200 is a lot of money for me, I could use it for relocation expense instead..

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If you are moving to California, they also got choice of law and they will honor Delaware SOL, ask in the legal forum how to move it to another court if needed, claway is from Cali he must know it. Anyways if you are gonna be in NY for 3 more months just drag it, and as soon as you move and or it's outside SOL let them know your new address by cmrr letter, so if they sue in NY you can countersue them for a FDCPA violation, you get a consumer attorney that can handle it for you, since they will get their attorney fees from them if that happens.

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Lets look at something here before you get to enthusiastic to pay. Calvary is a junk debt buyer, they buy charged off debt and try to collect it. If Calvary has it they more than likely bought it. If Calvary bought it that means the FIA charged it off. If Calvary does sue they probably will not be able to prove to the court that they own the debt.

 

Send them another letter and ask them if they own the debt or if they are collecting on behalf off FIA. You could call them but if they tell you they own it on the phone at least you will know more.

 

Calvary can be beat in court. Now if they do file a suit, you can have it transferred to CA, it not a hard process its the law,,,,,they have to sue you in the county where you reside. I would write them a letter, make it short and sweet, just say "in order for me to pay the amount you have agreed to i will need to know if I am paying the correct business. I need to know if you own this debt or if you are collecting on behalf of a client who owns the debt. This could buy you some more time before they file a suit.

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They did buy it from FIA, I called bank of america, they said the debt was charged off and sold to Cavalry, so doesn't it mean that they own the debt now, no need to verify?  I have a couple of student loans that were also charged off by sallie mae and probably bought by collection agency, they are planning to sue me and said that even if I move to another state I will have to come back to NY to court, because case was filed in NY... and they are not willing to settle for less than 70%... anyway back to Cavalry, I will try to stretch it for 3 months, sending them debt validation letter, and then the offer settlement letter, their success is now in their hands, if they act fast they might win my money!  Thanks for your suggestions everybody!

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They are wrong about having to come back to NY, they just don't want the hassle of an interstate suit. They would have to hire an attorney in CA and that is more money they have to spend. You have it moved to CA if you file the paper work.

 

Calvary can be beat in court, it iwll be hard for them to prove that YOUR account was part of the portfolio that they purchased.

 

Do you absolutely have to move right now or will it hurt to defend the suit and then move?

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Its good to know, I need to do more research into interstate law, if I don't have to come back to NY just for court appearance that will save me a lot of time and money!

 

I do have to move in less then two months, my lease expires, its a $1700/month apartment, I could extend for extra month, but that cost more than to settle for 20%...  and everybody I know is married, some have kids, and living in tiny apartments, there is no way I can stay with them for even a few days...

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