Jump to content

On a scale of 1-10, how good is this collection settlement letter?


MusicalPorpoise
 Share

Recommended Posts

I am trying to settle a collection. The SOL ends early next year and normally I'd just wait it out but I'm applying for a new apartment and they said any unpaid collections are grounds for being unapproved for the apartment. I even asked if paying a larger deposit was an option and the answer was absolutely not. It's a really nice, brand new complex in town and I really want to live there. I'm looking for somewhere I can stay until I save up money for a down payment on a house.

So here's the letter:

Quote

 

Dear Collection Agency,

I am writing to offer a settlement in full for the account listed on my credit report. Please understand that I am not claiming responsibility for said debt, I just want to pay it off and get on with my life. The account shows $584 due and I would like to offer $200. If you can accept that and agree to mark the account as paid and also agree to never sell or transfer the account, please send back a signed agreement stating as much and I will forward payment as soon as possible.

Please note that marking the account as settled or anything that would indicate that it was paid for less than the full amount is not acceptable to me. If you are willing to delete the account entirely in exchange for payment, I may be able to scrounge up a bit more money. Please send your best offer in that case. I am low on funds and have sent offer letters to other collection agencies so act fast.

Thanks,

My Name

 

 

 

So how good is this letter on a scale of 1-10, 1 being downright awful and 10 being perfect? Any suggestions on how to change it up? The collection is due to fall off my credit report in mid to late 2018, well before I plan on getting a mortgage. Also, I have more money and can offer more but since it's a junk debt buyer, I'd prefer to pay those jerks as little as possible. If I should offer more or less, just let me know. :)

Link to comment
Share on other sites

4 minutes ago, jessarox said:

So how good is this letter on a scale of 1-10, 1 being downright awful and 10 being perfect?

-3.  Hands down probably one of the worst settlement offers I have ever seen and likely to be ignored and put on the JDB employee break room bulletin board for comic relief.

5 minutes ago, jessarox said:

Also, I have more money and can offer more but since it's a junk debt buyer, I'd prefer to pay those jerks as little as possible. If I should offer more or less, just let me know.

Without knowing who the JDB is along with the date of default it is impossible to say whether this is a tenable offer or not.

6 minutes ago, jessarox said:

The collection is due to fall off my credit report in mid to late 2018, well before I plan on getting a mortgage.

That puts your date of default somewhere in 2011.  Indiana has a 6 year SOL on credit card debt (if that is what the original account was) and that means they have until 2017 to sue you.  There is the risk they reject the settlement and simply file suit.

8 minutes ago, jessarox said:

Any suggestions on how to change it up?

Yes:

[Date]

[consumer]

Address

City, State, Zip 

[creditor]

Address

City, State, Zip


Dear [Creditor], 

I am contacting you today in regards to account number   ________________________
After a lengthy time of financial hardship, I am now in a position to satisfy the debt under the aforementioned account number. I would like to ask for your cooperation in helping to resolve this debt. I am putting forth a sincere effort to settle my debts and pay them off. 

I would like to propose a full payment toward this debt in the amount of $ _____. I propose that this amount be accepted as payment in full of the aforementioned debt. In addition, I would like to request that the trade line related to this debt be removed from my credit bureau reports. 

I am currently working cooperatively with several additional creditors for debt settlement purposes, and therefore, my funds are limited. For this reason, I have chosen to settle those debts which can be satisfied through settlement proposals, such as I am proposing to you today. 

A couple of my creditors have already made acceptable settlements with me. I would like to include this debt among the paid account. If the above proposal is acceptable, I will pay the above agreed upon amount in full. Please have an authorized representative sign the enclosed agreement. Please keep the original for your records and return to me a copy of the signed document. Upon receipt of the signed agreement, I will send you the agreed upon funds via money order within 14 business days. 

Yours truly, 

 

[Consumer]

Link to comment
Share on other sites

[CREDITOR]. and [CONSUMER] hereby agree to compromise the debt amount under the terms and conditions that follow:

[CREDITOR]. and [CONSUMER], both the parties agree that the outstanding debt is [AMOUNT] . Moreover, the parties consent [CREDITOR] will accept a sum of $xxx.00 and consider it as full payment. The acceptance of the payment will be treated as a complete discharge of all due bills and [CREDITOR] will not take any further step to collect on the alleged debt or sell the debt to another collection agency. The payment will be made once the agreement is complete and either in cashier’s check or money order.

This agreement will be valid until [DATE] and be treated as null and void if [CONSUMER] fails to make the payment within the due date and the account status will immediately stand as due.  Upon successful payment of the compromised amount, [CREDITOR] agrees to erase any negative information that it might have placed on [CONSUMER] credit report within 14 days of receipt of payment.   Moreover [CREDITOR] agrees to never place any such information on the consumer’s credit report in future.  Both parties are obliged to abide by the rules and regulations of the agreement and it’ll stand to benefit the parties, their successors and assignees.

Dated:   

Signature: _________________________________             Date:­­­­­­­­­­­­­­_________________________

 

Printed Name:­­­­­­­­­­­­­­­­­­­­­­­­­­___________________________________

Legal representative of [CREDITOR]

Signature: ________________________________               Date:_________________________

[CONSUMER]

Link to comment
Share on other sites

Ouch, well I'm glad I posted here instead of making a fool of myself (er, well, to the CAs at least, I've clearly made a fool of myself on here).  :(

I have read and read and read and read about debt settlement letters until my eyes were tired and my head hurts and a lot of what I was reading was saying to 1-don't use a form letter and 2-don't use overly legal language because CAs are less likely to work with you. I guess it can't hurt to try the letter you posted. Thanks. :)

Now if you'll excuse me, I'm going to go cry a little.

Link to comment
Share on other sites

28 minutes ago, jessarox said:

Ouch, well I'm glad I posted here instead of making a fool of myself (er, well, to the CAs at least, I've clearly made a fool of myself on here).  :(

Quoting Aaron Rodgers:  R-E-L-A-X.  You did not make a fool of yourself.  You merely asked whether the letter was sufficient and YOU asked for a rating.  The best way to get across that it is not a good idea to send it is to rate it WAY low.  The only foolish question is the one not asked.

There is no need to cry.  You asked BEFORE you sent a bad letter and got an example of a good one.  I have used it three times and settled debts very easily.  

30 minutes ago, jessarox said:

I have read and read and read and read about debt settlement letters until my eyes were tired and my head hurts and a lot of what I was reading was saying to 1-don't use a form letter and 2-don't use overly legal language because CAs are less likely to work with you.

The best letters are straight forward and simple.  There are definitely form letters NOT to use.  I had not seen yours but going back over it some critical mistakes that you would want to avoid in ANY settlement letter are:  

52 minutes ago, jessarox said:

If you can accept that and agree to mark the account as paid and also agree to never sell or transfer the account, please send back a signed agreement stating as much and I will forward payment as soon as possible.

NO JDB is going to agree to settlement like that and send you a signed agreement.  You send it to them and they are very likely to accept it.  They will not do the work for you.  They also won't settle based on "as soon as possible" they want to KNOW when they will get the money.

53 minutes ago, jessarox said:

If you are willing to delete the account entirely in exchange for payment, I may be able to scrounge up a bit more money.

HUGE mistake.  Reading that you can get more money means they will reject your first offer out right.   Depending on who the JDB is they may not do PFD at all.  Some like Midland and PRA have a hard line stance against it and therefore you are better off simply leaving it out of the settlement offer.

54 minutes ago, jessarox said:

Please send your best offer in that case. I am low on funds and have sent offer letters to other collection agencies so act fast.

Too vague.  You will notice my letter includes the settlement agreement to sign and clearly gives a set time frame in which they will be paid and HOW.  That is the kind of offer they tend to jump on quickly.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.