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CFPWNY

Need advice on how to handle debt settlement offer

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I became delinquent with payments on one of my credit cards (owed about $7000 on it) and it went into collections with CACH, LLC after 4 or 5 months of missed payments. Because I was delinquent on this particular card, the amount owed ballooned up to over $10k. Cach, LLC is being represented by the law offices of Harold E Scherr, and gave me a settlement offer today over the phone at roughly 45% of what is owed. They also emailed me a copy of this settlement offer. Of course the woman on the phone (who was polite) wanted to rush me into accepting and paying this amount asap, otherwise the offer might "expire". After reading articles on this site, I am thinking I might be able to do better and settle at a lower amount.

 

My question is, should I respond with a registered letter to the law firm representing Cach, LLC in an attempt to haggle the settlement down even further (at 15-20%, for example), or should I attempt to deal with Cach, LLC directly in this matter? Just wasn't sure of how to proceed. While the 45% offer is nice, I'm stretched financially and the lower I can settle, the better. I've read on this site that 15-20% settlement offers are sometimes successful, so I was thinking of countering their 45% offer at 15%, as well as requesting that Cach, LLC delete the collection account off of my credit report (which is otherwise clean). Thanks in advance for any suggestions.

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I personally would let them sue me rather than pay a junk debtor. If it is with cach's lawyer they do plan to sue you if you don't pay. If you want to settle it, at this stage in the game you won't get much lower. They paid about 70.00 for your account. Let me ask you, what was the charge off balance? New case law suggests they cannot add interest from the time of the charge off to the time they bought the debt,. If you let them sue you and are willing to learn, this forum can show you how to fight it, or at least get a better settlement offer. Of coarse there are no guarantees , but look around some threads, and in the winners circle before you decide.

If you do decide to settle, make sure you get a stipulation letter that say debt paid in full, they will not sell the remainder of the debt, and will not issue a 1999c.

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well alot of debt buyers and CACH LLC is a group of debt buyers.the smaller amount paid the less likely they will delete their entry.now does the letter say anything about not selling,or assigning the forgiven portion?that is very important,and if the letter doesn't contain that verbage i would be hesitant to accept the settlement.can you pay the 45% according to their letter?

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shellieh98 anything over 600.00 forgiven it is required to file a 1099c.i just ask alot because CACH LLC is like LVNV.a group of debt buyers.i am with you on the fact that they are presurring CFPWNY.i would really think before accepting this offer.

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The letter does not contain verbiage stating anything about selling or assigning the forgiven portion. Here is the content of the letter:

 

"As you are aware, this office represents CACH, LLC, current creditor and owner of the above-referenced
account. This letter is written to confirm your recent communication with this office. Our client has
agreed to accept the sum of $4,xxx.xx in full, final and complete settlement of the entire balance due and
owing on the subject account. The payment(s) are due in our office no later than 7:00 pm EDT on August
30, 2013.

 

If the agreed upon amount is not timely received in the form of good funds, the full balance of $10,xxx.xx
plus any interest, charges, and/or attorneys’ fees that are permitted by the terms of any agreement that you
signed, or by law, will remain fully due and payable.

 

AT THIS TIME, NO ATTORNEY WITH THIS FIRM HAS PERSONALLY REVIEWED THE
PARTICULAR CIRCUMSTANCES OF YOUR ACCOUNT.

 

This law firm does not engage in any reporting activities with any credit reporting agencies, credit
bureaus or similar entities. At such time as this account has been fully settled or otherwise finally
resolved, we will advise our client thereof and further advise them of their obligation to comply with all
applicable credit reporting laws and regulations.

"

 

Shellieh98 - I am not sure of the exact charge-off balance. I did request documentation from the law firm representing Cach, LLC verifying the debt, etc.

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that is a standard CACH LLC d/b/a letter.i wouldn't accept it as they will i guarantee it either sell it,or give it to another d/b/a,or another debt buyer.the only thing they mentioned was the dent would be considred paid.that's not near enough.if they won't include the provision of not assigning,or selling the forgiven balance then paying them would mean nothing.i wouldn't do it without that clause.

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Should I respond through email or by letter only? Want to make sure I don't take the wrong approach...

 

Thanks for all of your input so far.

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Well it is sticky. Some don't , they are not out all that money. The problem with a 1099c is it is supposed to be issued for the year of charge off by the original creditor. oc has nothing more to do with it and has written it off their books and sold the debt. when jdb takes it, the charge off already occured, then they sit on it for a bit, which could be 2 -4 years before they collect. Here is an article about it. They are supposed to issue the 1099c for when the account was charged off, or in the oc case forgiven. Some people have fought the 1099c and won.http://www.wscpa.org/Content/39754.aspx

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Well I've responded to the law firm representing CACH, LLC via email. I've asked them to add a provision to the settlement letter regarding CACH, LLC guaranteeing that they will not under any circumstances sell or assign the forgiven debt to another d/b/a or collection agency, etc. Also, I've asked that the collection account information be removed from my credit report (not expecting them to agree to that, but figured it wouldn't hurt to ask).

 

So are you sure there is no room to haggle at this point? Is the 45% as good as it gets with CACH, LLC?

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Why not counter offer? It would depend on how many times the debt has been sold, how much paperwork they have, how strong a case they have. Most pre legal accounts won't settle for less than 30-50 but lowball them at 15% maybe they will come back at 25%.

Oh and if they do issue a 1099c, you can always try and meet insolvency. under Code Section 108 there are ways to avoid having it recognized as income. the most common is the Continued Insolvency exception. Here's how that works: Add up the value of all your assets on the day before they "cancel" the debt. then add up all your obligations for the same day (include the full amount of the debt being "cancelled"). If the debts exceed the assets, you meet the Continued Insolvency exception and the 1099C income is not taxable. There is a form to fill out (Form 982) to show this.

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@paulieinil

 



that is a standard CACH LLC d/b/a letter.i wouldn't accept it as they will i guarantee it either sell it,or give it to another d/b/a,or another debt buyer.the only thing they mentioned was the dent would be considred paid.that's not near enough.if they won't include the provision of not assigning,or selling the forgiven balance then paying them would mean nothing.i wouldn't do it without that clause.

 

The letter includes "Our client has agreed to accept the sum of $4,xxx.xx in full, final and complete settlement of the entire balance due and owing on the subject account."

 

"Full, final, and complete of the entire balance" means the account is paid, and there's no balance left to sell. 

 

The OP could request that they include that they won't sell the account, but if it's his desire to accept the offer, I wouldn't turn it down just because they don't include that language.

 

Also, although we don't recommend paying JDBs, that's up to the OP.  If this account is well within the SOL, and he's sued, it would depend upon whether or not he wants to fight a lawsuit and what actions the JDB could take if they win the case.

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@shellieh98 thank you as i was wrong on the 1099c point,but did some looking and CFPWNY did you receive an actual letter,or just emails?i ask this because i couldn't find HAROLD E SHERR in the NY BAR ASSOCIATION.he has an office in PA,but not NY.i would proceed with caution as to whether or not to accept this at all.also when was the last payment?i know interest accrues,but from 7,000 to 10,000 in 5 months?sounds like they are padding the numbers to me.

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@shellieh98 thank you as i was wrong on the 1099c point,but did some looking and CFPWNY did you receive an actual letter,or just emails?i ask this because i couldn't find HAROLD E SHERR in the NY BAR ASSOCIATION.he has an office in PA,but not NY.i would proceed with caution as to whether or not to accept this at all.also when was the last payment?i know interest accrues,but from 7,000 to 10,000 in 5 months?sounds like they are padding the numbers to me.

 

Just email so far - the email included a PDF attachment which was the letter they sent. I copied and pasted the text verbatim from the PDF letter.

 

Last payment I made on this account was October 2012 (balance was at $7300), I'd have to go back at the statements and look to know for certain, but it's been 9-10 months since I've made a payment on the account. The card went into collections after 3-4 months of missed payments. I lost track of what went on with it because I was on overseas business travel from January-June. The law office representing CACH left a couple of voicemails last month and I finally returned their call today and the rep I spoke with immediately started talking about a settlement offer. I told her I needed some time to decide on the best course of action and she agreed to email me a settlement letter in the mean time.

 

Thanks for checking on SHERR's BAR assocation status. He must have satellite offices or other firms that he works with locally because the law office numbers show up from a local area code (not that they couldn't easily spoof this by using an online call service).

 

As much as I'd like to stick around and fight the JDB in Court, there aren't any guarantees in the legal world so I'd rather avoid rolling the dice. If I can haggle with the JDB and have the debt resolved, I'd rather go that route than receive a summons for a Court appearance.

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you see if they had an office in new york then why can't they send you a dunning letter?that is an FDCPA provision as well.after first contact in 5 days a dunning letter should be sent.btw spoofing is illegal,but easier than you think.

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btw how do they expect you to pay if you were going to pay?i sure as heck wouldn't give them any sensitive info,and want an address to send any payments either money order,or cashiers check not drafted by my bank.just too many red flags with this.

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btw how do they expect you to pay if you were going to pay?i sure as heck wouldn't give them any sensitive info,and want an address to send any payments either money order,or cashiers check not drafted by my bank.just too many red flags with this.

 

The law firm's address is in the letter.

 

LAW OFFICES OF HAROLD E. SCHERR, P.A. 1064 GREENWOOD BLVD., SUITE 328

ATTORNEYS AT LAW LAKE MARY, FLORIDA 32746

WWW.SCHERRLAW.COM

HAROLD E. SCHERR (FL, GA, NY)

ALEX MCCLURE (FL) PHONE: (407) 995-3000

JOSEPH A. RANIERI IV (GA) TELEFAX: (407) 995-3100

TOLLFREE: (800) 858-8736

 

Harold E Scherr does show up in the NY BAR search. He was admitted in 2012. He's listed as residing in Lake Mary, FL.

 

http://iapps.courts.state.ny.us/attorney/AttorneySearch

 

As for expectations of how I would pay, they wanted my ABA Routing and account number over the phone. I politely refused and said I would mail payment to them if I agree with the terms of the settlement.

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@CFPWNY

 

As for expectations of how I would pay, they wanted my ABA Routing and account number over the phone. I politely refused and said I would mail payment to them if I agree with the terms of the settlement.

That's the way to go.  Don't forget to get the agreement signed.  

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One last question - am I best sending all mailed correspondence to the law firm or CACH, LLC directly? I plan on sending them a 15% settlement offer and will likely use the form posted on this website. Thanks again for all the helpful posts.

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@BV80 - Not that I recall. To be honest I was away from home for several months and if my wife thought it was junk mail she could have very well thrown it out.

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