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JDB offering settlement for half the amount

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Its not unusual for them to keep lowering the amount. Depending on the JDB they may try and cut it in half again. They do this because any settlement is guaranteed profit.


Take a 500. charge off that they paid 20.00 for. They sue this person three years later for 1,000 which includes "interest" and "fees". They offer the person a 50% discount which brings it back to the original 500. At this point they make a profit of 480.00 minus minimal cost. Even if they cut it another 50% they still pocket over 200.00 for very little work. Multiply this by thousands of accounts and it doesn't take long to make millions with this business model.

In my situations I always ask myself why they would offer to settle if they had such strong cases. I have always called their bluff and let them proceed. That being said they always have a chance of winning if you do not defend yourself properly. Even when they don't have a legal case or any evidence they may win because of the way they handle legal procedure. 


The odds are with you if you know what you are doing. Just make sure you understand what you are supposed to do. Understanding the legal procedure of your court system is often more important than who is wrong or right. If all that mattered was the law all of these JDBs would not be in business.

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An offer to settle in most cases translates to them knowing they are on the losing end and cannot prevail in court with the evidence (or better said the lack of evidence) that they have.  This is even more obvious when they offer the settlement just after receiving your discovery.  They have nothing to prove either that you had the account or that they purchased it or both. 


They were expecting an easy default judgment and since you fought back they are taking their last desperate measure before being left with no choice but to dismiss the case.  A big "Hell no!" from you is in order.  What you do next is ignore the settlement offer and wait for the answer to your requests and prepare for a good laugh.  While you're waiting study hard on your state's and court's rules of procedure.


Edit:  I just noticed that ArtVandelay basically said the same thing.

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