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blahblah123

Want to settle, not sure where to start

5 posts in this topic

Hey everyone; I have a "charge-off" debt originally from Capitol One, now through Portfolio Recovery Associates. The balance owed is approximately $1,050. They've sent me a letter saying "Second Notice: Account Transferred to Litigation Department. At this time, no attorney has personally reviewed the particular circumstances of your account." They then said it can be settled for ~$840, if received by 9/05/2018. Well, unfortunately it went to my old address, where my brother currently lives but since we haven't talked in months after a petty disagreement, I only received the letter today, 9/23. To be honest I'm willing to settle it for some amount (would they likely take $350-400?) but I'm not sure where to start. From reading on here, it seems I'm too late to send a debt validation letter? Would that even help if I did? How should I proceed in contacting them and do I say, upfront, I would be willing to pay X or what have you?

This is a very old debt from when I first entered college and became beyond apathetic to this debt since I was trying to not get evicted, being a college student in San Francisco with its crazy rent prices. But I'm willing to really just pay it, although part of me wonders what the point would be if it's now gone against my credit twice now I assume? I assume the main concern would be avoiding them trying to get a court judgment against me if I never paid? I would genuinely appreciate any thoughts or advice. Thanks

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A few important things:

1.  PRA will never, ever take this off your credit report until the 7 years are up, even if you pay 100%.  If you reach a settlement, they will mark it as being paid for less than the amount owed,

2.  The DV is within 30 days of when you receive the letter.  You can send them a DV, stating what date you received the letter.  

3.  Just how old IS this debt?  Is it past the SOL?  I gather you were in California when you defaulted.  If I were you, I would check both the Cali and the Indiana SOL just to be safe.

4.  Unfortunately, you are now in Indiana, which is a very creditor friendly state, rather than California, which is much friendlier to the debtors.  That will hurt your bargaining power a bit.

5.  I have absolutely no idea what they would accept.  What they offered is a pretty bad settlement, over 80%.  I have absolutely no idea what would happen if you contracted them about a possible settlement.  Maybe they would take it, maybe they would reject it, maybe they would never even answer you.  If I were you, I would see if there is someone to call, and make an offer you can live with.  

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Unfortunately Cap1 no longer has arbitration in their contracts, so that takes away your best leverage for settling.

If this were me, I would send them the "DV letter" (which should only be a very simple dispute letter; "I dispute this debt, please verify").  When they respond with verification, I would then send a follow up letter that states you continue to dispute this debt, however in the interest of further time and expense you are willing to settle this disputed debt for $XXX.  I would start with a low offer and see if you can negotiate up to the max amount you are able to pay in one lump sum.  In other words, if you have $400 right now that you can use for this, then I may start with an offer of $200 to settle.  They will reject it and I would counter back to them with $250, then $300 and so on.  When it gets to $400 (or whatever your final number is), I would let them know that this is my final offer.  You might even try to let them know that you only have this amount because you borrowed from a family member and that you will not be able to give them any more than this to settle the matter.

I can't say whether it will work or not.  You don't have any real leverage yet, so they may just ignore your offers.  At this point, my main concern would be preventing a judgement and then worrying about the credit reports later.  Once this is settled and you have, in writing, an agreement that whatever amount you are paying is considered the full and final payment and that you are released from all further liability, only THEN would I start to see what kind of errors I might be able to dispute on the credit reports to attempt to remove PRA (Cap1 will stay there, and be very tough to remove).

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On 9/23/2018 at 7:16 PM, blahblah123 said:

Hey everyone; I have a "charge-off" debt originally from Capitol One, now through Portfolio Recovery Associates. The balance owed is approximately $1,050. They've sent me a letter saying "Second Notice: Account Transferred to Litigation Department. At this time, no attorney has personally reviewed the particular circumstances of your account." They then said it can be settled for ~$840, if received by 9/05/2018. Well, unfortunately it went to my old address, where my brother currently lives but since we haven't talked in months after a petty disagreement, I only received the letter today, 9/23. To be honest I'm willing to settle it for some amount (would they likely take $350-400?) but I'm not sure where to start. From reading on here, it seems I'm too late to send a debt validation letter? Would that even help if I did? How should I proceed in contacting them and do I say, upfront, I would be willing to pay X or what have you?

This is a very old debt from when I first entered college and became beyond apathetic to this debt since I was trying to not get evicted, being a college student in San Francisco with its crazy rent prices. But I'm willing to really just pay it, although part of me wonders what the point would be if it's now gone against my credit twice now I assume? I assume the main concern would be avoiding them trying to get a court judgment against me if I never paid? I would genuinely appreciate any thoughts or advice. Thanks

You say it is for rent?

Rent falls under the Uniform Commercial Code and has a statute of limitations of 4 years.

Any attorney who tells you rental contracts are written agreements is just plain wrong.

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1 hour ago, TowerRat said:

You say it is for rent?

Rent falls under the Uniform Commercial Code and has a statute of limitations of 4 years.

Any attorney who tells you rental contracts are written agreements is just plain wrong.

Not in Indiana. 

IC 34-11-2-7 Six year limitation

     Sec. 7. The following actions must be commenced within six (6) years after the cause of action accrues:

(1) Actions on accounts and contracts not in writing.

(2) Actions for use, rents, and profits of real property.

(3) Actions for injuries to property other than personal property, damages for detention of personal property and for recovering possession of personal property.

(4) Actions for relief against frauds.

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