Author Topic: Collection Agency letter offering 3 options to settle debt  (Read 1111 times)

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joe_2200

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Collection Agency letter offering 3 options to settle debt
« on: April 30, 2010 05:13:50 PM »
I have a 5 year old $500 debt that I disputed with a national bank.  They sent it to a local collection agency.  I recently received a letter giving me 3 options.  One option was to pay $40 per month until it is paid off.  2nd option was get a 30% savings and pay them $350.  3rd option and their "best" offer was a 50% savings and pay them $250.  If I did this would it be taken off my credit report and I would have a zero balance or will it stay on my record for 2 more years until the debt is 7 years old.
thanks

maylaur

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Re: Collection Agency letter offering 3 options to settle debt
« Reply #1 on: April 30, 2010 05:36:29 PM »
You can try to negotiate a pay-for-delete with the collectors in exchange for you paying off the debt.  If you do this, make sure you get it in writing before making payment.  Otherwise they might decide they don't need to hold up their end of the bargain, claiming they never agreed to delete anything.

If they won't do a PFD, you need to make sure you get it in writing that paying the discounted amount will satisfy the debt.  If they send you something stating that, the balance should be reported as $0 and it can stay on the report for the remainder of the reporting period.
Anything I post is from my own personal experience, and might not apply to your own situation. 
I do not offer legal advice; for that, please consult a lawyer.

Joie

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Re: Collection Agency letter offering 3 options to settle debt
« Reply #2 on: April 30, 2010 06:13:50 PM »
Unless they say they will take it off your credit report (and give that to you in writing) they don't have to remove it.  It will show up as something like "paid at less than full amount"  or "settled for less than amount owed" instead of "paid in full" or removed all together.  While that would be better than it showing up as unpaid, it still is going to be a spot on your credit report.  See if you can get them to agree to take it off, and get it IN WRITING.  Don't let them just say "oh yeah, sure we'll take it off" or "no we can't do that."  Lots of them will say they can't, but that's not true.

Good luck!
It matters not how strait the gate,
How charged with punishments the scroll,
I am the master of my fate:
I am the captain of my soul
~ William Ernest Henley (Invictus)

Flyingifr

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Re: Collection Agency letter offering 3 options to settle debt
« Reply #3 on: April 30, 2010 08:12:01 PM »
What State are you in?

4th option - if it's Out of Statute, send a FOAD letter saying "I like it on my credit report and after 5 years it has little impact anyway." Wait for them to threaten to sue and then you sue them, and get $1000 plus removal.
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)

ladygarner

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Re: Collection Agency letter offering 3 options to settle debt
« Reply #4 on: April 30, 2010 08:15:38 PM »
I'm rather fond of Flying's response.  :)
Thanks to all that helped me go from :-[ to :karate: 

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