Newleaf

New to all of this-debt settlement with collection agencies

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I currently have 4 debts with collection agencies. I want to try to offer them a settlement starting at 25% of the amounts. Total claiming is only $2400 and at 25% I have enough to pay all now. However I also want to have it deleted from my credit report after the settlement. Is this possible to bargain with if not paying the full amount? They are months and months past due....any direction or help would be appreciated as to where to start an what is reasonable. Thanks!

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Paying a CA is never a good idea.  You cannot trust them.  They cannot speak for the OC...but they will take your money anyway, and you'll wind up owing the balance.  And, if they do agree to remove their tradeline, the OC's will remain.

 

If you're so inclined, call the OC directly and see what you can work out.

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Then your screwed as far as paying the OC. They will just refer you to the CA or JDB. You don't owe them, so why pay them? Get on here and read and learn how to fight to win. You have a good chance of winning if you will just apply yourself. Make sure you save all the letter from each one, start a file and DV them when you get a dunning letter within the 30 days. Should you receive a summons to court, make sure you answer it within the time alloted to advoid a default.

 

Also, stay off the phone with them, make all contact via usps mail and send yours CMRRR.

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@Newleaf ... you need to make sure who owns the debts.  CAs don't buy debts.  JDBs buy debts.  CAs just do the hassling for OCs or JDBs.  Most credit cards companies don't sell their debts to a JDB for quite a while...maybe years.

 

If the debt is still owned by the OC...call them...if the automated phone system asks for you to punch in your account number...don't.  Press 0, or whatever, until you get a real person...ask for the resolution department.

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Thanks Willing, I meant to word it as such or along those lines, but, I was in a hurry to get to the casino for all you could eat sea food night. Prime ribe and crab legs....lol

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I have and they are from collectors on behalf of the OC. I actually just received a letter from the court on behalf of portfolio recovery services in relating to one of my debts....and am freaking out a little bit. Don't know what to do.

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I have three debts in collections...I just got my credit reports. 2 with portfolio recovery services for $1,120 and $502. One with cach llc for $842....totalling around $2,470. I have $850 in savings...can I settle? Would pay for delete be better? Not sure best route

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Sounds like we determined one thing. The "collection agencies" are junk debt buyers who now own your debt.

 

The settlement method that appears to be most effective is to proportionally divide the money you have between the three "creditors" and offer the settlement to all of them at once. I believe Clydesmom has had success with this method.

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So can I ask for it to be deleted after I pay a settled price? If I just shows as settled how does that reflect negatively and for how long?

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You can ask, but I doubt that you will get anywhere. At the most the JDB will show as paid but it will remain on your CR. Only maybe one in a hundred do you hear of them removing it. But, then you also have the OC reporting as well, your not going to get him to remove it to. Check your CR, note that there is TWO TL's on there. One from the OC and one from The CA/JDB.

 

Personally, I would not give them a dime and wait out the seven years for it to drop off. After two or three years it doesn't hurt you that bad, except in buying a house. Mtg. comp. will want to see it paid off.

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I already have the $1200 one with a letter from the courthouse to answer to the lawyer from the JDB. I . Would rather not wait 7 years....in my state SOL its longer anyway. ..I hope to buy a house in the next 2 to three years so I want to get this all taken care of. My debt isn't much. I am thinking of just seeing what they'll take as a settlement and work from there.....or just call Lexington law and get their help!? I finally want to get my life back on track and dont want all of this hanging over my head.

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