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Settlement Offers


mjh41553
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Has anyone had trouble getting an original creditor to send a settlement offer letter?  I spoke to three of them tonight on the phone, and they said they couldn't send a letter until after they received the lump sum payment.  I said that was unacceptable.  One had an offer I could have accepted, except for the inability to put it in writing.  I am in the process of drafting settlement offer letters of my own, but will not send funds until I receive confirmation from the creditor,  Is that too much to ask?

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Has anyone had trouble getting an original creditor to send a settlement offer letter?  I spoke to three of them tonight on the phone, and they said they couldn't send a letter until after they received the lump sum payment.  I said that was unacceptable.  One had an offer I could have accepted, except for the inability to put it in writing.  I am in the process of drafting settlement offer letters of my own, but will not send funds until I receive confirmation from the creditor,  Is that too much to ask?

 

I send my own settlement offer and agreement enclosed.  If they sign and return it to me I pay.  You cannot force a creditor to send you a settlement agreement 

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  • 2 weeks later...

I sent out proposed settlement letters to several creditors on the 10th of this month.  How long does it typically take to get a reply?  I'm at least near if not past the 180 day mark.  I was under the impression that 180 days was the cutoff before they go from an OC to a CA.

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Hard to predict when (or even if) you'll get a response...but it will certainly be longer than 10-11 days.

 

Nothing magic about 180 days.  And, be sure to keep the players straight...chances are, the OCs already have CAs involved.  CAs handle the phone calls and hassling.  After some period of time (maybe 6 months to several years) the OC will "write off" the debt as uncollectable and sell it to a JDB...who will then get another CA involved in hassling you.

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I have two creditors who refuse to even sign a proposed settlement agreement (one that I would prepare) before receiving the check.  Isn't this wrong of them?  I told that that I would have no proof that the funds would be considered a settlement and not just a payment on account, but they both said that that's the way they do it.  The letter is supposedly sent out after they receive the funds.  The accounts are due to charge off in a month.  I told them no deal without something in writing, and that I would be willing to prepare it, but they don't seem willing to budge.  What should I do?  I hate the prospect of dealing with a collection agency, but don't want to throw the money down the toilet by sending it without any assurance that it will be applied to a settlement.

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The two creditors who want the payment BEFORE sending any kind of written confirmation of the settlement account are Synchrony Bank (for JC Penney's) and Macy's.

 

Has anyone else had problems with them?  The amounts owed aren't that much, but they are being really difficult.

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I have only answered a few of the collection calls, preferring to call customer service at least once a month to check in and most recently asking about settlement.

 

You may be the only person who calls their creditors monthy to "check in" with them.   That amused me.

 

"Hello, Macy's?  Just calling to tell you I still owe you but I'm not paying it today.  Thanks!"   :ROFLMAO2:

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You may be the only person who calls their creditors monthy to "check in" with them.   That amused me.

 

"Hello, Macy's?  Just calling to tell you I still owe you but I'm not paying it today.  Thanks!"   :ROFLMAO2:

 

Way more common than you think.  Some people seem to think that just keeping the lines of communication open is sufficient to keep creditors from moving forward with recovery efforts.  Used to get calls all the time, "I know I owe it & I'll pay it when I can, bye."

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The reason I do it is because I did some online research and also read Mandy Akridge's book Negotiate and Settle Your Debts - A Debt Settlement Strategy and she advised readers to do that for a few months, then begin proposing settlement.  It does keep the lines of communication open and lets them know that settlement is what you're looking for, although they still keep trying to get me to do payment programs to bring the accounts current.  I just tell them that's not what I'm interested in, that I need to get them settled once and for all.  JC Penneys, Macys and BonTon say they don't send settlement offers because they're original creditors, so I said that perhaps I'd have to let them charge off and deal with the CAs.  Chase sent a settlement letter when I requested it and the payment is going out Fedex today, so not all original creditors are idiots.  It appears they'd rather get nothing, since I said I wouldn't just send money and hope to get a settlement letter afterwards, as they said I had to do in order to settle with them.

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I send my own settlement offer and agreement enclosed.  If they sign and return it to me I pay.  You cannot force a creditor to send you a settlement agreement

When you sent your own settlement offer and agreement, and if it was accepted and you paid them, have you had any problems afterwards?  I have read that the offer has to be on the creditor's own letterhead and, if it's not, there could be problems later.  How long ago did you do this?

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