How to settle?

[bigmistake22]

Hi everyone,

I'm a bit overwhelmed. I'm looking for guidance on how to settle a bill (for less than amount owed) and make sure I get the best outcome possible. I was considering arbitration but I'd like to make a plan to I know all my options. 

I am looking in the pinned posts and don't know if I'm missing it - so please feel free to point me in the right direction - but I can't find info on what it means to settle a debt for less than the amount owed and how that can affect me in the future. 

Here is the situation: I've been offerd a settlement of $5400 on a $8000 credit card charge off. The debt was sold to Credit Corp Solutions and they sued me with Stillman Lawfirm. 

If I settle for $5400, they would report to court that the debt is "settled for less than full value" but my balance would be zero. I know that some people have trouble with this so I know if I take that option, I would have to stay on top of them to make sure they report it correctly.  What else do I need to do? 

They said, as the law firm, they don't report to the credit agency but he said I can call the credit agency directly to request they stop reporting to the agency (but the lawfirm coudln't do that for me). So I can't get a pay for delete. Does that mean I should not settle? Anything else I need to watch for? 

I read that the SOL can restart somehow and I have to learn more about that. I would hate to restart the clock - this debt is from 2018

thanks in advance!

 

[shadow99]

38 minutes ago, bigmistake22 said:

I read that the SOL can restart somehow and I have to learn more about that. I would hate to restart the clock - this debt is from 2018

That's only if you make a partial payment.

If you're settling by paying a lower amount that the creditor will accept as full payment, you get it in writing to protect yourself - then save that plus proof of your payment. This should not restart your SOL if I understand correctly.

I've read hear that your goal for settlement should be 30-50% of the total.  I've always used arbitration as leverage.  My experience with arbitration is that the creditor will start their first offer to me at 50%, then I've gotten them down further because they didn't want to pay those fees. Twice, it was for a $0 payment for mutual dismissal.  The third time was for a $500 payment on a $6K+ debt.  This would never have happened without going to court and requesting arbitration.

If you're comfortable with the offer you've negotiated with Stillman, that's all that matters though.  It sounds like you can afford to pay it and it solves a lot of problems for you, especially if you're too late to file a MTC.

[bigmistake22]

This is a  reassuring response..thank you, @shadow99!!

 I think you are right about the partial payment restarting the debt but a settlement (for less than full amount) would not. I went back and re-read the previous posts and that is what they were saying. I was just a bit overwhelmed/confused so I misunderstood.

I'm just amazed that arbitration could get you $0 payment and mutual dismissal. That's huge. I wish I started this process sooner, I think I could have had a good case. $500 on a 6k. That's incredible. You give me so much hope! 

I think, at this point, my best bet is to settle. I know i"m getting the short end of the stick and they are making money off me. It is close to my principal amount that I owed ($4700) so I feel morally obligated to pay it back. That of course, is just me rationalizing a bit. I think I'm stuck with settlement b/c it's going to be too late. Big mistakes were made and I've learned a lot. I can't really afford to pay it (we took from our new roof fund) but, hopefully, I can get my credit back up to where it needs to be so we can refinance or do home equity loan. For now, my credit is shot. I gotta start somewhere!

Thanks for your message...it was so helpful! I am so grateful for these boards. I'm taking notes and feeling hopeful again!

 

[BV80]

1 hour ago, shadow99 said:

If you're settling by paying a lower amount that the creditor will accept as full payment, you get it in writing to protect yourself - then save that plus proof of your payment. This should not restart your SOL if I understand correctly.

Just follow the terms in the agreement.  As long as the settlement agreement states that upon payment of the agreed upon amount by the date provided for in the agreement, and the consumer abides by the terms, the account is settled.  The plaintiff cannot go after the remaining amount.  

[BV80]

@bigmistake22

Also, make sure you get a copy of the agreement before you pay anything.  Take a picture of it.

[bigmistake22]

Thanks, BV80.  That's what I was hoping but I was a bit overwhelmed with all the different situations here in the group. I was reading some info and thinking it applied to me (partial payment vs settled for less than full amount). This is a steep learning curve but everyone has been patient with me. 

So, if I choose to settle, I know I need to check the agreement to ensure I have all my bases covered.  Is there a good resource for what needs to be included in the agreement? From what I gather, I need to know the terms (in this case, settled for less than full amount, account will be closed) and the amount to be paid.

Anything else I need to ensure is included? 

By the way, the law firm associated with Credit Corp solutions says they do not report to credit agencies and referred me to Credit Corp solutions to see how they file. I contacted Credit Corp and they were able to find my bill and confirm that it was purchased from Synchrony bank. They also said, according to their records, they had not reported it to any credit agencies (I believe this to be true, I don't think I see this one on my credit report. It was charged off according to synchrony bank).  They said if I paid with them (credit corp) they would have given me a letter saying it was "paid in full" and reported to agencies that way - but I wasn't able to do that b/c of the lawfirm and she referred me back to the law firm.  So, I'm in a loop. I guess if I settle, I would have to wait for the letter from the law firm saying it was paid for less than full amount and closed and see what is reported to the agency the following month. Does that sound like a plan? Or would I go directly to synchony (the OC) and ask them to update?

Thanks in advance.

 

[bigmistake22]

14 minutes ago, BV80 said:

@bigmistake22

Also, make sure you get a copy of the agreement before you pay anything.  Take a picture of it.

I will! Thank you! They were hesitant to send. Everything sounds legit and others who have dealt with them have had similar experiences "didn't love them but they did what they said they would do"

I don't want to pay a thing until I see the offer. Thanks!

[shadow99]

2 minutes ago, bigmistake22 said:

I will! Thank you! They were hesitant to send. Everything sounds legit and others who have dealt with them have had similar experiences "didn't love them but they did what they said they would do"

I don't want to pay a thing until I see the offer. Thanks!

If you search for them, you'll also see some online reviews (BBB or maybe pissedoffconsumer) where they didn't do what the consumer thought they were supposed to do. 

I always take those reviews with a grain of salt because there are a lot of people out there who are easily confused, want to believe what they want to believe, or don't pay attention to the details. But, some of them are probably true.

I'd get the offer in writing - even if it means you show up in court with a certified check for the amount of the settlement. At the very least, the judge may be willing to continue for you guys to work out the details if a rent-a-lawyer without a clue shows up.  Or, maybe your court is the kind that sends people out into the hall to negotiate before you see the judge. 

I'm far from an expert - so those are just thoughts.  Don't ruin your settlement chances over any crazy suggestions I offer.

I don't understand the reluctance to give you a written settlement offer.  They know it's a standard thing.  All the settlements I've made have been like the letter you received from Chase or the lawyer provided one without me asking once we agreed to conditions.

[bigmistake22]

I will call them today and ask for the settlement offer again. I'm giving them the benefit of the doubt on the settlement offer b/c I was pretty tentative on everything when we got to that point. I wasn't sure if it was necessary (now I see it is). I can call and be more direct in my request. 

You are right about the reviews. I didn't look too much on the general google search for reviews but I did dig through reddit, this site and another credit board. I only found a handful.

Thanks for talking through this with me - it helps to have someone who has been through it. These boards are so helpful. I hope that one day I'll know enough and have figured all this out that I'll be on the other side of this and offering my crazy advice to a newbie