Author Topic: Simple and small CA settlement - Best steps?  (Read 165 times)

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skyflower

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Simple and small CA settlement - Best steps?
« on: February 10, 2015 12:57:02 AM »
I received a 50% offer from a CA to settle a very small, two year old debt. I just want to accept it and make it go away, but also to do it correctly. I've started reading from the early posts and am up to PFDs, but there is so much depth and sometimes conflicting information. With a small debt like this is there a simple way to proceed? Thanks.

Edit: I should clarify. My goals are to make the CA go away as well as the tradeline showing on my credit reports. The offer letter mentions nothing other than ways to pay and a bit of legalese should I pay by check.
« Last Edit: February 10, 2015 01:34:37 AM by skyflower »

kevinmanheim

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Re: Simple and small CA settlement - Best steps?
« Reply #1 on: February 10, 2015 01:02:25 PM »
Do they own the debt, or are they collecting on behalf of the owner?

If they do not own the debt, I would not pay the CA anything, or even discuss the debt with them.

I would only pay the owner of the debt, and only after a written agreement that indicates they own the debt, that payment will settle the debt in full, and that the debt will never be reported to any third party (including CRAs), and that the unpaid balance of the debt will not be sold.

If they will not put the above in writing before you pay, I would never pay.

TomNTex

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Re: Simple and small CA settlement - Best steps?
« Reply #2 on: February 10, 2015 02:36:17 PM »
If you pay anyone, only do so by money order or a bank check from a bank different than your own bank.

skyflower

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Re: Simple and small CA settlement - Best steps?
« Reply #3 on: February 10, 2015 05:05:40 PM »
The letter doesn't specifically say they're a debt buyer but it does list the "original creditor." It does not look like a CA, actually, but a JDB? I'm new to this.

The debt already shows on my credit report as a negative/unpaid bill and these guys are named as the creditor.

Good point about terms. I hadn't considered they would resell the discount as a debt but that makes sense.

Definitely won't be paying by check. The "check" notices on the letter raised the hair on my neck.

fisthardcheese

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Re: Simple and small CA settlement - Best steps?
« Reply #4 on: February 10, 2015 05:15:59 PM »
What exactly does the letter say?
3 Arb Settlements (in AAA, pre-arb hearing)
2 JDB Suits Dismissed With Prejudice (in small claims using counter claims)
2 TCPA Settlements (1 using ITS with Draft Complaint; 1 using consumer attorney)
1 FCRA Settlement (after suit filed, using consumer attorney)

Flyingifr

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Re: Simple and small CA settlement - Best steps?
« Reply #5 on: February 10, 2015 09:24:29 PM »
I received a 50% offer from a CA to settle a very small, two year old debt. I just want to accept it and make it go away, but also to do it correctly. I've started reading from the early posts and am up to PFDs, but there is so much depth and sometimes conflicting information. With a small debt like this is there a simple way to proceed? Thanks.

Edit: I should clarify. My goals are to make the CA go away as well as the tradeline showing on my credit reports. The offer letter mentions nothing other than ways to pay and a bit of legalese should I pay by check.

It isn't going to just "go away" - the CA will try to have it haunt you for as long as possible. I find this especially with smaller debts. The smaller the debt the less likely they are to negotiate at all.

Do a search for "Back Door PFD" in Debtorboards, I suspect this is the only way you will get them to negotiate.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Morality of Debt? No one ever went to the Nether Regions for not paying a debt.

Founder of the Credit Terrorist Training Camp (Debtorboards)

Clydesmom66

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Re: Simple and small CA settlement - Best steps?
« Reply #6 on: February 10, 2015 09:34:43 PM »
It isn't going to just "go away" - the CA will try to have it haunt you for as long as possible. I find this especially with smaller debts. The smaller the debt the less likely they are to negotiate at all.

I disagree.  It depends on what the debt is for and who is doing the collecting more than anything else.  I successfully did PFD on a half dozen small debts with no trouble at all.  Two thirds of them were settled for less than the full amount owed and they all deleted immediately after I paid via money order.  No negotiations necessary. 
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

skyflower

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Re: Simple and small CA settlement - Best steps?
« Reply #7 on: February 10, 2015 11:48:29 PM »
That's the kind of information I'm looking for. By "go away" I mean "make it go away." By paying, negotiating, whatever.

This one resulted from poor judgement on my part. Things weren't going well. The original debt was questionable and could have been fought, but I didn't handle it and let it stagnate until it went to collections and was apparently sold. Now I just want to perform the correct rites to make it go away, even if that means a 200% settlement.

I'm not comfortable providing the letter or even the name of the agency unless that's the norm.

@clydesmom66, when you say you "did PFD", can you walk me through that? Do I write to them by snail mail with a proposal, send a MO, call? As always the first step is the most difficult.

Thanks everyone. This has been a real headache.

fisthardcheese

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Re: Simple and small CA settlement - Best steps?
« Reply #8 on: February 11, 2015 10:36:53 AM »
You don't have to use names, actual amounts or other information you are uncomfortable posting.  I only asked what the wording of the letter was because I was curious about the "check notices" as you called it.  If they said something that violates consumer laws it may be used to your advantage to negotiate your settlement lower or possibly to $0.

Also, if you can do more research on your CA it does make a difference on what strategy you use based on whether this is a JDB or a CA collecting for the OC.  You should try to find this out for sure.
3 Arb Settlements (in AAA, pre-arb hearing)
2 JDB Suits Dismissed With Prejudice (in small claims using counter claims)
2 TCPA Settlements (1 using ITS with Draft Complaint; 1 using consumer attorney)
1 FCRA Settlement (after suit filed, using consumer attorney)