I need advice/help with settlement to United Recovery Serv.
Date: Wed, 06/13/2007 - 03:10
I have a question concearning how to deal with paying a settlement to United Recovery Service...or whether I should do this at all.
First, my wife and I had a Bank of America Visa account that got "charged off" according to the people I talked to at Bank of America. B of A told me that i would have to deal directly with United Recovery Service and gave me their number.
I contacted an agent at URS and they began negotiating how much and when I could make payments on this account. They also told me that B of A might recall this debt and seek legal action later on.
At first, the URS people were uncooperative and for a week or so, I blew them off. They wanted all the money at one time...and in a day or so. This was just not possible at all.
Well, I decided that I could take some money out of my 401(k) and pay them off all in one fell swoop. I hate to do this, but the interest being added and the possibility of legal action made me decide that the fees involved with early withdrawal were less impactful than paying these wolves off and getting them out of my life.
I contacted United Recovery Services and told the people that I could get all the money at one time. They were INSTANTLY more friendly and cooperative.
Since I live in the same city as United Recovery Serivice, I told them that I wished to deliver the cashiers check in person. They said that would be acceptable. I also said that I wanted a letter, stating that this was settled and paid for and that I did not owe any additional monies. They agreed with this as well.
They wanted me to pay this in a day or so, but I told them that since it was a large early withdrawal from my 401(k), this might take up to 5 working days. They seemed a bit agitated, but still interested and agreeable. I cannot see how they thought I would be able to pull this out of thin air in 24 hours...Are all collection agencies this impatient?
The collection agency said I was to make out the cashiers check to Bank of America and to put my account number on the check as well.
I have a few questions about all of this...
First, if this debt (which is about 10 months old) was charged off, why do I have to make the check out to Bank of America? B of A told me that I would have to deal with URS and that they were out of the picture.
Second, if I pay this collection agency and get a letter stating I have settled and owe them noting more, can they go after the remainder of the original debt later on? Could Bank of America send another collection agency after me for the unpaid portion?
Third, will the collection agency report my paid settlement to the credit bureaus or Bank of America? Will I have to report the pay-of myself? This is one reason I wanted the letter on the day i droped off the check.
Fourth, they seemed so overly impatient...like if I did not get this money in 24hrs, the settlement amount could go up. Is this a scare tactic? They have to know that waiting a day or so is better than no payment at all...right?
I am a bit scared about handing over this amount of money to these people, but they seem legitimate and said they'd give me a payoff letter to my satisfaction.
Should I trust them?
I want to settle this and have DEFINATELY learned a huge lesson about credit cards and this will NOT happen to us again.
Thanks in advance for the help!
- Brickboy240
PS: the settlement amount is about 45-50% of the original debt that was charged off by Bank of America.
I would contact them again and get a letter in writing BEFORE gi
I would contact them again and get a letter in writing BEFORE giving them payment stating that if you pay the agreed upon amount then this debt will be settled. Then, once you have the letter, pay them the agreed upon amount, keep a receipt of payment and ask for another letter stating that you paid it!
I agree with leah but also instead of withdrawing the money out
I agree with leah but also instead of withdrawing the money out of your 401 can you get a loan through it. I know some companies let you take a loan from your 401 and charge little interest and you can set how long the loan would be for. They would take the payments out of your paycheck. That would avoid the early withdrawl tax. Just a thought, we did that and are paying $19.01 a week (we get paid weekly) for the next 4 years.
If you get it in writing then you should be ok, but they will report it on your credit report as settled in full, not paid in full or paid as agreed. Plus then you will get a statement to file with your taxes for the amount you will not be paying and you have to report that as income (something like that) I also have heard that if you get another credit card they MAY put the amount you didn't pay BOA on your new card and pay BOA that amount, so you could have a balance right away.
They DID state that they would give me a letter when I came in t
They DID state that they would give me a letter when I came in to hand them the check. They also stated that the agency would send me another letter, once the cashiers check clears, stating it was paid in full. I don't necessarily trust them to send me the second letter...but will follow up with calls afterthe check clears to get my letter.
However, I think I will ask them to send me the letter, stating the date, amount agreed upon and that this will be reported to the original creditor and that this is ALL I owe them. Yes, I'd like to have this letter BEFORE I hand over a cashiers check. I also plan on making a copy of the entire cashiers check and keeping this, along with the letter, in my file.
Am I missing anything else?
What about the collection agency wanting the original creditor (Bank of America) on the check, instead of their agency's name? This does not jive with Bank of America's claim that all my dealings for paying back had to go through the collection agency...does it? How does the collection agency get any of the money, if the cashiers check is made out to the original creditor? Will the CA come back after me again because technically, I did not pay them directly? Is this where my requested letter will save me?
Also, why was this CA so insistent on me paying them in the next day or so...knowing darned well that I was going to need a few more days to get the money? Is this just another of their tactics? They told me that our "arrangement' might not be valid in a few more days, but I am betting this is just another scare tactic. Whats two more days if I am going to pay them ten grand...right?
Thanks for the help....I think I am doing the right thing and hope to NEVER get in this situation ever again.
- Brickboy240
I would call BOA and ask them that same question. It is possible
I would call BOA and ask them that same question. It is possible that this CA gets a fee and maybe a bonus for getting the money asap. But they could be getting paid AFTER they get the money to BOA. But like you I don't understand, if the check needs to be made out to BOA then why doesn't BOA make the settlement with you directly? I don't think the CA would come back after you when you get a letter stating that it has been paid. They wouldn't have a leg to stand on. But make sure you keep a copy of EVERYTHING just to be sure. And just file it away but NEVER throw it away just incase something turns up years down the road. It is better to be safe than sorry.