Topic: Settlement Letter critique request.

[cobra2411]

Ok so I have 10 creditors looking for $40k and in this economy they're simply not going to get paid in full... 4 of the OC's have sold to JDB... So my thoughts were to offer settlements to those JDB's for 5-10% of the balances (which are 2658, 1368, 1354 and 1100). My goal is to settle and move on but if that's not possible I want to show that I've attempted to make progress to resolve this issue. Then I'll go down the ARB road...  For what it's worth the highest amount owed to a single OC is around 7k.

This is mostly from a letter found on the interwebs that I tweaked.

Cobra             Certified Mail # 7009 2250 0000 0000 0000             
321 Some St
Some Town, Penna

July 23th, 2011

CA / JDB
123 N Main St
Anytown PA 19000


Dear Gentle People ;
   
   It has come to my attention through the credit bureaus that you claim I owe a debt to your agency. I have determined that I need more information before proceeding; therefore, as I may have made mistakes in handling this matter, at this time I withdraw all previous requests, claims or defenses I may have mistakenly sent to your organization or anyone representing your organization.

   I would like to save us both some time and effort in this matter by "Settling the debt out". Below you will find my offer. This offer is not a renewed promise to pay or an admission of liability, nor does it constitute any agreement unless you sign and return it. Please Note, I have not agreed yet that this debt is mine and I reserve the option to seek further proof from your agency of this debt. It has also come to my attention that your agency regularly purchases debts in the course of doing business.

   Suffice to say, you hold all the rights to report the debt to the credit bureaus as you see fit and you can change that listing at any time as the source reporting the debt.

   I am sure you are aware of my right to dispute this debt and request full proof of the obligation. Paying this unverified debt to you means little to me if we cannot mutually agree that you will report the debt as mentioned below.

   While I realize that your purpose is to collect debts as a collection agent, I am also aware of what a paid collection would look like on my report, which is not favorable. That being said, I have concurred through the bureaus that you have the absolute right to report this debt as you see fit or not report it at all.

   Please do not quote to me that you are unable to change the listing or I will be forced to cease and desist our communication and request full lengthy verification of the debt.

   My goal is to arrange a term acceptable to both us since this debt is questionable.

   I will pay your company the amount of $xx as payment in full for the full satisfaction of this account. Upon receipt of the above payment, your company has agreed to change the entry on my credit reports to Paid, no lates. You further agree to remove all previous notation of delinquency.

   If you concur with these terms please acknowledge with your signature and return it to me. You agree the terms herein are confidential and you have the authority to make such decisions. No payment will be made without written confirmation. To show good faith and speed these proceedings up I will accept a faxed copy but will require the original be mailed to me. Also you may call me ONLY to inform me of your acceptance to this agreement and to inform me that you are returning this agreement to me signed. The number enclosed is a cell phone and I do not authorize any communications other then listed above. Using the enclosed number for any other reason will be considered harassment and will be handled accordingly.

Upon receipt of this signed acknowledgment, I will immediately mail you funds priority mail. This is not a renewed promise to pay but rather a restricted offer only. If no terms can be met, no new arrangements will be made and the offer will be void.

Name of Creditor:__________________________

Signature of company officer accepting agreement:______________________________________

Date: ______________________

Sincerely,

Cobra
All Rights Reserved
Without Prejudice UCC 1-308

If there is anything in this letter with which you disagree, then rebut or refute, with particularity, that with which you disagree, in writing, to me within (20) days of the date of this letter.  If you do not respond to me as stipulated, then, by your silence, you fully agree and acquiesce that everything stated in this letter is true, correct and fully binding upon you in any court of competent jurisdiction.

[kevinmanheim]

Bad idea to put it in writing. If you don't settle, the letter can come back to haunt you in court.

Form letters found on the internet are especially bad to send. They, like the one you posted, are usually filled with bad information and empty threats.

I have never heard of an OC who responds to settlement letters. They just file them away, using them against you later.

The only way to settle with an OC is to call and discuss a settlement. Record the call (if legal in your state), and only pay via certified check or money order, and only after you have recorded proof that the payment will settle the debt in full. Know that if you tell them you are recording the call, they will probably hang up. 

Read the JDB sections of this site. Never pay a JDB a dime. They can be beaten in court.

[cobra2411]

So I call and tell them it's a recorded call and they hangup. That gets me where exactly? (Pa is a two party notify state on recorded calls BTW)

These letters can also come back to bite them <Removed> in court too. At least I would think. And it can't be any worse to me than the letters I've already sent out...

Is it too wordy? Should I entice them to contact me for a settlement amount?

How about settlement by UCC simple contract?

If you would simply prefer to settle this account, zero out the balance and remove all entries from any and all credit bureaus you may have reported to; pursuant to UCC - Article 3;

§ 3-601.  DISCHARGE AND EFFECT OF DISCHARGE.
(a)  The obligation of a party to pay the instrument is discharged as stated in this Article or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.

My offer to settle is for $xxx I have enclosed a check in this amount.

If this is acceptable, please deposit CK# 123, enclosed within, and I will consider this matter settled.

If not, please return said instrument.

Admin Note:   Inappropriate language removed. 

[kevinmanheim]

You're going down the wrong path.

If you've already written too many letters, stop the damage before you make it even worse.

Your letter will not do them harm in court. You borrowed money from them under the terms of a contract. You defaulted. They are under no legal or contractual obligation to settle with you for less than 100%.

If I were in PA and wanted to record the call, I would wait until they told me the call was recorded. I would say: Ok, the call is recorded.

UCC simple contract? You owe them money. If this gets to court, you will get nowhere with UCC simple contract. The judge will look at their evidence and award them everything, including attorney fees and other costs.

If you want to settle, it's possible for about 10-25% of the balance, and depending on the OC.

If you post the names of the OCs, I and others can give you a rough idea of who will settle for what %.

Again, there's no reason to pay a JDB a dime. If you wait, they will likely violate the FDCPA and PA law, allowing you to collect money from them. If they sue you, attack their evidence as hearsay.

[cobra2411]

UCC simple contract? You owe them money.

Everything is negotiable right? 

Bottom line is that with settlements I could probably clear all this up, without I fight and the nuclear option is BK.

The main players are Cap1 (3), Chase (2) and HFC (1). HSBC, GEMB and Citifinancial have all sold their debts.

[kevinmanheim]

C1 can be beaten with arb.

Read up on Chase. They are dismissing suits all over the country due to robo-signing issues.

HFC - No idea about them. Look in your local court records to see if they sue. Check the contract to see if it contains arb.

The ones who sold to a JDB are easy to defeat. They will probably violate the FDCPA and PA law. Documents everything, save everything. Read these forums - lots of good info.

Based on what you've written, you can probably walk away from all this for 10 cents on the dollar.

Again, I wouldn't send any more letters, other than DVs to JDBs and CAs. Send them CMRRR:

Dear CA:

I dispute. Validate.

Calls are inconvenient. Correspond by mail only.

If there is an arbitration clause related to this debt, I elect arbitration to settle our dispute.

Sincerely,

Me

[cobra2411]

And here I was thinking I was so smart...

Oh well... Call filter off, rope deployed and now I wait... If I get another summons I'll MTC JAMS. Otherwise I'll see what happens.

How often does Cap1 and Chase sell their debt? I already avoided a DJ with Cap1 because they didn't show. Still in the window for them to appeal though. Guess I could MTC JAMS if they appeal.

[cobra2411]

Just going though my mail and I got an offer to settle from Chase for 60% of the balance. Respond or not? BTW I can't afford to settle for 60%.

edit: It's from Northstar Location Services LLC... Did they buy the debt?

[CleaningUp]

A seasoned player at the game can get the matters settled with mutual walk-aways.

Spend a day or so reading the arbitration threads and understanding the underlying principles and the steps necessary to move yourself into the position to take advantage of the leverage.

[kevinmanheim]

Just going though my mail and I got an offer to settle from Chase for 60% of the balance. Respond or not? BTW I can't afford to settle for 60%.

edit: It's from Northstar Location Services LLC... Did they buy the debt?

60% is a joke.

20% would be closer to a real settlement offer.

Check your credit report to see if Chase still owns the debt. If the balance on the Chase account is $0, they have probably sold it.

[cobra2411]

I just pulled my CR a few days ago and Chase is still reporting the amount.

Should I send the ultra-simple DV letter to them?

[kevinmanheim]

I just pulled my CR a few days ago and Chase is still reporting the amount.

Should I send the ultra-simple DV letter to them?

Never DV an OC.

Only DV a CA or JDB.

DV relates to the FDCPA. OCs aren't subject to the FDCPA.

[Byte]

Never DV an OC.

Only DV a CA or JDB.

DV relates to the FDCPA. OCs aren't subject to the FDCPA.

It depends on the state.  I do believe CA residents are privy to a DV of the OC (don't take my word on it, though.  I don't live in CA).

[cobra2411]

So if an OC retains a CA then I can DV even though the OC still owns the debt?

[Byte]

So if an OC retains a CA then I can DV even though the OC still owns the debt?

You can DV the CA, but not the OC.