I think you should simply state why you couldn't pay off the debt against which there is a charge off. Then request the creditor to settle the charge-off for less than the original amount.
What I mean is, tell the creditor to settle it so that the credit report will reflect that the charge off is settled for less amount. But such a settlement affects the credit score negatively. Hence, it is better that you pay off the debt by requesting the creditor for some more time, so that you can gather the funds.
Complete payment of debt will result in the charge-off being removed from your report, though it will take quite a number of years to get the charge off from the credit report.
I just settle my fiances old debt. She owed $2,200 We got the creditors to bring the amount down to $1222 I simply told the company that we wanted the amout at least 40% off and when they could get the amount down we would pay. A supervisor call less then a week later with an offer to settle the account. Be stern and confident on the phone. It works
Charles, did you get a paid in full letter? If not, I would call back demanding it. If you do not get this letter, it would not surprise me in the least to see this or another collection agency attempt to collect the remaining balance.
Need some advice, on dealing with CA's. Is it a good idea ( and can the CA's be helpful) about helping you pay off a delquent account? I really don't want to go through consolidation/settlement companies, I want to do it myself ( with some VERY small debts, I have) but, with the 'big' ones. My question is....does a CA have an obligation to help you, settle the debt, at a LOWER payoff amount?
I've been going through my CR and looking at some of the 'open-accounts'. I've been successful dealing with the 'little' stuff..$500.00-$1000.00 ( these amounts ARE little, compared to some other amounts, on my CR..LOL ). I'm just wondering if anyone has tried to settle other accounts, with a much bigger amount owed. I don't have the specific CA's, right 'in front of me'. But..I can get them iand put the names on this forum ( or..am I aloowed to put the names on this forum?)
My question is....does a CA have an obligation to help you, settle the debt, at a LOWER payoff amount?
No. Settlement is just the cost of doing business.
I'm just wondering if anyone has tried to settle other accounts, with a much bigger amount owed. I don't have the specific CA's, right 'in front of me'. But..I can get them iand put the names on this forum ( or..am I aloowed to put the names on this forum?)
Yes, it is permissible to name a collection agency on this board.
I would think it is slightly easier (in a manner of speaking) to settle on a higher balance. Why? Commission. A significantly higher balance even when settled at a lower percentage can still result in a much higher commission for a CA/individual collector. A person may be able to settle for as little as 40% of the amount due (keep in mind there can be tax implications), sometimes even a bit less than that.
Gosh..I couldn't 'spell' , in the last post I wrote, could I?? LOL This may be a strange question...but, is there a different between a consolidation company and a settlement company?? Do they do anything different from each other? They BOTH settle your debts ( sort to speak). I hope you understand my question.
Settlement by means of a settlement company is the last option, short of BK. Your account defaults, and you build up an account by which to settle at a lower amount. This causes your score to tank...lots of 30-60-90-charged off entries, it can haunt you for a while. You can also be sued for the debts, and in almost all instances, do not expect the company to defend you.
Consolidation involves negotiating to waive fees and lower interest rates. Your credit is impacted during the program, but rises upon completion.
Settlement is like settling the debt when you dont have any other option and you are planning to file a bk. In this case a negotiation is done to settle the amount at a lower amount. The creditors agree to it because incase you file a bk they will hardly get anything. So half a loaf is better than no bread for them. However the account is reported as "settled". so your score takes a back seat.
In consolidation, all your loans are consolidated together. The negotiation is made with the creditor to waive excess fees and interests. Now you need to make one single payment and the debt consolidation company will make payments from that single amount. The score is affected highly during this process but rises considerably once things are fixed.
I have a old debt, almost SOL, I need to settle so I can purches a home. What I dont know is do I call the collector on my report or the new collector that just sent me a letter, saying they are respresenting the other collector..........sign, confused in Nevada
If the two are different then please go ahead and send a validation letter to the new collector who has sent the letter.
For the one on the report..call them and find out whether they still have your debt or sold to the new one. I think its the new one who you should be dealing with now. The new one wont be legally shown in your report unless they validate the debt. Once they are able to only then they can report to the bureaus.
RE:
Hi,
I think you should simply state why you couldn't pay off the debt against which there is a charge off. Then request the creditor to settle the charge-off for less than the original amount.
What I mean is, tell the creditor to settle it so that the credit report will reflect that the charge off is settled for less amount. But such a settlement affects the credit score negatively. Hence, it is better that you pay off the debt by requesting the creditor for some more time, so that you can gather the funds.
Complete payment of debt will result in the charge-off being removed from your report, though it will take quite a number of years to get the charge off from the credit report.
Settle old debt
I just settle my fiances old debt. She owed $2,200 We got the creditors to bring the amount down to $1222 I simply told the company that we wanted the amout at least 40% off and when they could get the amount down we would pay. A supervisor call less then a week later with an offer to settle the account. Be stern and confident on the phone. It works
Charles, did you get a paid in full letter? If not, I would call back demanding it. If you do not get this letter, it would not surprise me in the least to see this or another collection agency attempt to collect the remaining balance.
debt
Need some advice, on dealing with CA's. Is it a good idea ( and can the CA's be helpful) about helping you pay off a delquent account? I really don't want to go through consolidation/settlement companies, I want to do it myself ( with some VERY small debts, I have) but, with the 'big' ones. My question is....does a CA have an obligation to help you, settle the debt, at a LOWER payoff amount?
debt
I've been going through my CR and looking at some of the 'open-accounts'. I've been successful dealing with the 'little' stuff..$500.00-$1000.00 ( these amounts ARE little, compared to some other amounts, on my CR..LOL ). I'm just wondering if anyone has tried to settle other accounts, with a much bigger amount owed. I don't have the specific CA's, right 'in front of me'. But..I can get them iand put the names on this forum ( or..am I aloowed to put the names on this forum?)
My question is....does a CA have an obligation to help you, settle the debt, at a LOWER payoff amount?
No. Settlement is just the cost of doing business.
I'm just wondering if anyone has tried to settle other accounts, with a much bigger amount owed. I don't have the specific CA's, right 'in front of me'. But..I can get them iand put the names on this forum ( or..am I aloowed to put the names on this forum?)
Yes, it is permissible to name a collection agency on this board.
I would think it is slightly easier (in a manner of speaking) to settle on a higher balance. Why? Commission. A significantly higher balance even when settled at a lower percentage can still result in a much higher commission for a CA/individual collector. A person may be able to settle for as little as 40% of the amount due (keep in mind there can be tax implications), sometimes even a bit less than that.
debt
Gosh..I couldn't 'spell' , in the last post I wrote, could I?? LOL This may be a strange question...but, is there a different between a consolidation company and a settlement company?? Do they do anything different from each other? They BOTH settle your debts ( sort to speak). I hope you understand my question.
Yes, there is a difference.
Settlement by means of a settlement company is the last option, short of BK. Your account defaults, and you build up an account by which to settle at a lower amount. This causes your score to tank...lots of 30-60-90-charged off entries, it can haunt you for a while. You can also be sued for the debts, and in almost all instances, do not expect the company to defend you.
Consolidation involves negotiating to waive fees and lower interest rates. Your credit is impacted during the program, but rises upon completion.
Settlement is like settling the debt when you dont have any other option and you are planning to file a bk. In this case a negotiation is done to settle the amount at a lower amount. The creditors agree to it because incase you file a bk they will hardly get anything. So half a loaf is better than no bread for them. However the account is reported as "settled". so your score takes a back seat.
In consolidation, all your loans are consolidated together. The negotiation is made with the creditor to waive excess fees and interests. Now you need to make one single payment and the debt consolidation company will make payments from that single amount. The score is affected highly during this process but rises considerably once things are fixed.
settling with collector
I have a old debt, almost SOL, I need to settle so I can purches a home. What I dont know is do I call the collector on my report or the new collector that just sent me a letter, saying they are respresenting the other collector..........sign, confused in Nevada
Marteen,
If the two are different then please go ahead and send a validation letter to the new collector who has sent the letter.
For the one on the report..call them and find out whether they still have your debt or sold to the new one. I think its the new one who you should be dealing with now. The new one wont be legally shown in your report unless they validate the debt. Once they are able to only then they can report to the bureaus.