This is my first post on this forum, so I would like to take a moment to say hello! I've been perusing the forum for a while trying to look for advice to my current situation, but I haven't been able to find one particular situation that really applies.
Anyways, here is my situation: In July 2011, I was served a default judgement for a GE Money CareCredit account that I had opened back in 2007 in the amount of $2300. The default judgment was served by Kohn Law Firm via Equable Ascent Financial, LLC. in the amount of $2643.00. Fast forward to now, and I have been proactively paying off debts and attempting to clean up my CR to rebuild my credit.
Three weeks ago, I contacted EAF to attempt to resolve this debt and see if there was any way I could go about having the judgment removed from my CR. The woman I spoke with informed me that at that time, the debt had come back to them, as Kohn Law Firm was unable to collect on the debt and given it back, apparently. So, she said in order to resolve the debt, she would have to place it with a debt collection agency. She called me back shortly thereafter and informed me the debt was placed with Enhanced Recovery Corp., and to wait a week or so while the information propagates in their systems.
I decided I wanted to wait and see if ERC would send me any paperwork in the mail w/ a settlement offer. The three weeks have passed and still I have not received anything. So, I called ERC on May 3rd to see if they had received the debt and to see what my options were to a settlement and vacation of the judgement. Upon speaking with the rep, he informed me they were willing to settle for $2150.00 up front. I stated that that was too much and asked if we could negotiate something at a lower rate. I was put on hold and he came back with $1598.92 (60%), but he then informed me that their client (EAF) would not want to negotiate anything lower most likely because they know they have leverage with the judgment (and my interest in having it removed from my CR). He also stated that if I decided to take that offer, he would have to pass the offer to a supervisor where it could be verified or denied, and which could take 24-48 hrs.
He then told me in order to go ahead with the verification process he would need some information regarding my credit info (if I own a home, car, etc.) and employer information/monthly salary. And that the information provided would hinge on my settlement being accepted or denied by a supervisor. He also asked for my bank information, but said that they would not take any money out just yet and that it would just be used to verify that the accounts were open and active.
Foolishly, I provided the information as I'm eager to get this debt taken care of and move on with my life. In hindsight and based upon what I've been reading, that was probably not the smartest move... Anyways, as I was on the phone, he called my bank to verify and that was that. He then informed me he would give me a call on Monday (today) to let me know what the decision on my settlement would be.
So this morning, after researching for quite a few hrs last night, I got really freaked out that I had given ERC my bank info w/out getting an agreement in writing, so I called my bank and had the account # changed just to be safe. However, I had only given ERC my member # for my credit union, and not my actual account #. But just to be safe, I had things switched into a new account.
So, here are my questions:
As someone who already has a default judgement on their CR, and now that the debt is being serviced by ERC on behalf of EAF, how should I proceed exactly?
Should I require them to validate the debt, despite knowing that EAF transferred the debt to them?
Also, for those of you who have dealt with ERC in a similar situation, how did you resolve the settlement and what was the amount or percentage you settled?
The ERC rep called me back early this morning while I was asleep, and so I did not answer, but I wanted to get some answers on here before proceeding. Any and all advice is welcome and I thank you in advance!
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