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nickysduck2

Accepting an installment offer from JDB

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My husband owes a credit card bill that was sold to Portfolio Recovery. Instead of fighting this he wants to just accept their installment offer of $25 per month. I am going to write them and accept this offer. Before I write anything is there anything specific I would be wise to include? I am asking them to cease all phone calls but just want to make sure I cover all our bases. Does this letter need to be sent CMRR or is delivery confirmation ok? I can't get to the post office to do CMRR for a couple weeks because they close before  am able to get off.  

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My experience is, they won't accept a payment that low.  At least not as part of an agreement between you and the JDB, before going to court.  

You might get a payment plan you can afford, along with signing a consent judgment, if you go to court and fight.  At least file an answer denying their allegations.  The court is more likely to recognize that you can't pay more and thus encourage a settlement you can afford.

But I would recommend you try the arb strategy.    You used it before with success, right?  So you can do it again.

 

 

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Ok I have 2 different cases. This thead is for my husband's debt and they offered him payments in writing of $25. He wants to accept just need to know if its best to just mail a check or write them accepting their offer with my/his first check included. My other case is mine and I  have already been sued but am judgement proof, live in a non community property state so if they don't accept what I offer they get nothing.

On my lawsuit I am honestly just thinking about offering $25 as well just so I can move on and if they deny it or fail to respond then Im just not going to worry. I'll show up on my court date and offer then same amount,close my bank account, file my state exemptions and hope for the best. The arb route is too stressful and Im not prepared enough to argue my case in court.While i do appreciate all the help and advice,people keep giving conflicting information and Im honestly even more confused about what to do concerning arb. I have panic attacks and made the mistake of not electing arb before I was sued and our judge is not arb friendly so im gonna be a wreck if i have to go before the judge and remember how to argue and what to say. 

I plan to write them (PRA) a letter being honest and telling them what I can afford. I know for a fact that before court the judge makes the plaintiff and defendant meet in the hallway to try and come to a payment agreement  so why not make an offer before court so I can prove I tried to pay something?  Im gonna offer them the same amount in the hallway as I did in my letter and if he does'nt accept it I will tell the judge I offered to pay what I can afford both in writing and in person (if they don't accept my written offer and we still go to court) and he denied it. I think my chances are better for my payment offer to get accepted by the judge than arb is and I don't have remember case law examples and what to say.

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1 hour ago, nickysduck2 said:

This thread is for my husband's debt and they offered him payments in writing of $25. He wants to accept just need to know if its best to just mail a check or write them accepting their offer with my/his first check included.

Usually when PRA sends an offer like this by mail, the offer specifies a firm expiration date.  You could call and make a counter-offer and if they don't accept the counter offer by phone, the written offer you that you received in the mail should still be available to accept until the expiration date.

Does the offer of $25/mo also include any reduction in the overall balance?  If the $25/mo offer doesn't reduce the balance, you'll be paying on it for nearly three years (based on the $745 balance that you mentioned earlier), assuming they don't continue to add interest to the balance.

PRA probably paid around $40-$70 for the account.  They might accept a lump sump of around $200.  Since you were considering initiating in arbitration ($200-$250), it might be worth a try to offer that money to settle the account in a lump sum.

Try to learn if the $25/mo offer is based on a fixed amount or if they would continue to add interest.  Get the terms in writing if you can so that nothing is ambiguous.

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Since it is your husband's account, one obstacle you might face in calling yourself is that they might refuse to talk to you about a settlement unless your husband briefly comes on the line and gives his consent for you to discuss the account with PRA.  So, you might want to call when he is home, unless he is willing to make the call himself.

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Another thought:  if you do enter into a payment plan with them, or settle with a lump sum, do NOT send them a check,  Use a money order instead.

 

If you use a check, they have your routing numbers and can clean out your checking account.  Which may or may not be legal.  Without a judgment, it probably isn't legal.  But it would then be up to you to assert your rights, probably hiring a lawyer, to get your money back.  Meanwhile you are broke.  Not a good situation, and can easily be avoided by using money orders.

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