clarification

What to do with these last few Charged offs, settle or wait it off

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Hello guys!

 

Sorry for the write up!!

 

A couple of years ago I settled around 5 credit cards that were charged off and the OC hired CA to collect. I settled for between 10% and 15%.

I was also sued by Discover and ended up settling before the court date for 16%.

Some here would cringe at the fact that I paid, but at the time I really wanted to get this over and didn't want to chance another lawsuit and the stress.

 

2 yreas later I am still left with a few charged off accounts that would not budge and wouldn't agree to a low settlement. 

Two still with OC and another sold to Cavalry. I am considering settling with them and get it over with.

 

Citi finally accepted a 15% settlement in writing after I called the executive office and the CA is now just waiting for my payment.

They will not delete the tradeline and will report as paid for less than owed. None of the OC accepted deleting anything.

 

On another one, I confirmed with OC that they sold to Cavalry 4 months ago, so I am waiting for them to call me in order to negotiate a super low settlement.

I won't pay unless it is 10% of original balance and ask for complete delete of their tradeline in writing since they are the ones reporting the TL.

I know the drill to pretect myself get in writing that they won't sell the remainder balance etc..

 

The reason I am needing your input is beacause, I keep reading "DO NOT PAY" over and over, so I wonder about this and obviously think if I do not pay what are the consequences for me.

 

At this point the SOL for the ones left for me to settle will expire in 2017, but 3 more years is still a lot of time to be on the lookout for lawsuits, especially when I moved out of state and  I might not even find out I was sued untill it is too late. I do not want to have to call the county clerk every week either for the next 3yrs.

Also, if they sue me, I would have to probably hire an Attorney if at that point they don't want to settle before court and that is money I could have used for a low settlement to get it over with soon instead of shooting the can and be on the lookout.

 

Even if the attorney stops the suit, they can still sue me later right? or even after the SOL has expired if I do not address the debt and settle. ( I know they can sue even settling if they sell the balance and are shady, but at least I would have proof and is more rare to happen vs never paying and getting sued is more probable)

 

Sorry for the write up, I guess, what I am trying to get is your argument as to why I should not settle these accounts.  I

In my situation I am trying to avoid possible lawsuits since I am not in my home state anymore and might be surprised with a default judgment, unless I constantly worry and check to see if i've been sued. I am thinking settling buys me peace of mind and helps me move on.

 

For those of you who have decided to not settle as your strategy and assuming this is your legitimate debt, are you guys not worried that  this will come back and bite you anytime when you least expect it as a lawsuit?

If you were  able to pay and settle for small amounts isn't paying worth to you to get peace of mind and not having to deal with the courts, attorneys, and the time it takes to get this resolved?

these is what I am asking myself now.

 

Please, I appreciate you reading this long essay and hope you can give me your perspective. I need it, since I have no one to talk about these things..

 

Thanks a lot!

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thanks for posting this-the advantage of paying is only of you get the tradeline removed and it shows paid settled only- It does not disappear. Its rare to get the trade line  removed- please share your experience it getting that removed.

 

If you don't settle, you will risk the suit and expenses.settled before trial,  you may have to settle for a higher amount because of their legal costs.

 

 If you got sued  and you can prove standing etc and what ever else a lot of people here win upon,  I assume at that point you can settle for way less. When the plaintiff has no case- and you just cant deal with it anymore-its your choice to settle prior to trial.

 

If you have SOL on your side never settle- just use the proof to get the case dismissed if you are sued. If the SOL is on your side, and they still try to collect  prior to a lawsuit; they can't collect  anymore cause of the SOL- they would be harassing you to see how stupid you are and maybe they think you are  someone who does not know their rights and will settle. In this case you know your rights.

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First off you have to do what is in your best interest. Secondly you are definitely in the minority getting OCs to settle for 10%-15%. Some of them were doing this at the peak of the global meltdown mainly because they were getting free money(TARP) from the government to ride out the storm. 

 

If you got these deals a couple of years ago all I can think is that they reviewed your personal history and decided anything was better than fighting for nothing. Without knowing any other details that is all I can guess. This is extremely rare for most of the big banks. I know of more than one situation where the bank spent 10X  the amount owed fighting against the consumer in arbitration, only to win and never collect a dime. The only reason I think they do this is because they are working with other peoples money and don't care about the bottom line. 

 

If you can get this type of deal with the remaining OCs I say go for it. You are not going to get any pay for deletes, so you already know this stuff stays on your credit for 7+ years. Just be careful that you don't end up paying and then they turn around and sell the accounts. This does happen, although is less likely if you have an attorney look over your agreements. 

 

As for Calvary or any other JDB I would make them prove they own the accounts. Most of these will leave you alone once they know you have a competent attorney. It is not in their business model to go after someone that puts up a fight, although anything is possible. I wouldn't worry as much about them suing you a second time as I would about them selling the account to a third tier JDB. 

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Hi Art, thank you for you comment.

 

I hear you on having Cavalry prove they own the account, but I have the feeling that since it is a sizeable amount under 4k , that they will go through the hoops to get Cap one to give them what they need to support a lawsuit against me and then add thousands more in fees.

 

I verified with Cap one that they sold it to them and it also says it on my Transunion credit report; "Sold To Cavalry".

 

What do you think? I keep reading some people having succces DVing Cavalry and them going away and deleting their TL, but I have the feeling those were little amounts not worth the trouble to them.

On 4k, don't you think they may just get what they need from Cap One and sue me?

 

If I knew some poeple who owed them that much had success with a DV letter and them just giving up, then I would do it, but only to get them to agree to a ridiculous settlement so that they don't sell it and I start worrying about another impending lawsuit.  Thoughts?

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Hi Art, thank you for you comment.

 

I hear you on having Cavalry prove they own the account, but I have the feeling that since it is a sizeable amount under 4k , that they will go through the hoops to get Cap one to give them what they need to support a lawsuit against me and then add thousands more in fees.

 

I verified with Cap one that they sold it to them and it also says it on my Transunion credit report; "Sold To Cavalry".

 

What do you think? I keep reading some people having succces DVing Cavalry and them going away and deleting their TL, but I have the feeling those were little amounts not worth the trouble to them.

On 4k, don't you think they may just get what they need from Cap One and sue me?

 

If I knew some poeple who owed them that much had success with a DV letter and them just giving up, then I would do it, but only to get them to agree to a ridiculous settlement so that they don't sell it and I start worrying about another impending lawsuit.  Thoughts?

 

Do I think Cap One will give them what they want? No. Not to mention they will never ask them for it. They buy huge portfolios of loans at a time and get very little documentation on individual accounts. The reason for this is that they probably only paid around 3%+/- for the accounts, so they don't get any type of warranty. Even if they present a bill of sale it will only have your name on a list of hundreds or thousands of others. 

 

That being said this is not the issue you will run into in Tennessee Courts. Outside of default judgments they win one of two ways. One way is having a biased judge and other is an unprepared defendant. This all comes down to which law firm they hire to come after you and where you are sued. All courts and judges are different and without knowing where you are located this is impossible to guess. When they beat someone who fights it all comes down to legal procedure, not what is wrong or right. 

 

You can try and negotiate with them if you want. Just remember to do everything in writing and use CMRR mail. Make sure you say something like I do not admit to anything and I am only considering negotiating to keep from wasting valuable time and expenses. I am not one that should even really be talking to you about this, but it you want to settle make sure and be careful. Since the amount is 4k I would definitely look into hiring an attorney with FDCPA experience. I would much rather give this money to a consumer advocate than to these bottom feeders. 

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Cavalry will not attempt to prove up the debt in TN if you have a competent consumer credit attorney that has a relationship with them both directly and through the few in-state firms that handle them.  That simple.

 

Moreover, the will agree to negate the debt, remove their tradeline, and never resell the debt.  This is standard operating procedure for them given the above facts are in place.

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Cavalry will not attempt to prove up the debt in TN if you have a competent consumer credit attorney that has a relationship with them both directly and through the few in-state firms that handle them.  That simple.

 

Moreover, the will agree to negate the debt, remove their tradeline, and never resell the debt.  This is standard operating procedure for them given the above facts are in place.

 

Thanks for your insight.

 

I'm assuming you mean this for when they have already sued and we have to go to court, correct?

 

How about negotiating with them for a small settlement and removal of tradeline and never resell before they sue?

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They may settle for something, but you won't get an agreement to delete their tradeline or an agreement not to sell the remainder without counsel.  More often than not, if you offer settlement they just push for judgment inasmuch as they know that you have some assets.

 

Much better in my opinion just to hire counsel that is familiar with them and be done with it forever. 

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