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My creditor offered me a settlement for half the debt owed. I asked them to give an agreement in writing, but they said no. What should I do? Shall I accept the offer? Does any one have any letter to send them?
Credit card company offered settlement
Hi akira,
I think you should accept the settlement offer, only if your creditor gives you a written agreement. You should send them a "Pay for Deletion" letter. This is a legal agreement with your creditor, to delete the debt account from your credit report, after it is paid off.
Your creditor must reply to your "Pay for Deletion" letter, stating on their company letterhead that they accept the terms of the agreement. If you pay the settlement amount without coming to a pay for deletion agreement, you will not have any proof that you have settled the debt. In case your creditor does not report to the credit bureaus to update your report after the debt is paid-off, the accounts will still be listed, as being due. Your credit score will not increase, unless the debt accounts are removed from your credit report.
akira, Does the original creditor still own this debt or is this a collection agency trying to collect on the debt? If it is a collection agency you need to be sure they legally own the debt before paying any money. You can do this by sending them a debt validation letter and be sure to send it by certified mail.
If it is the OC then you need to get the settlement in writing because they may come back for the remainder of the unpaid debt later. Most will do this with a little persistance becasue it costs a lot mroe to take you to court. Also when and if you do recieve the settlement in writing do two things. Push for the pay for delete as mentioned above and also keep a copy of your payment to prove you paid. Some will try to recollect on a debt years later and I have seen people throw out their proof of payment which is not good. Good luck.