have 50% of debt saved and ready 2 settle - advice?
Date: Thu, 06/14/2007 - 15:28
I want to pay off the debt in order to improve my credit. I am afraid of getting scammed by the creditors and would like some advice on the safest procedure for getting sucessful settlements that resolve the debt and either remove it from my credit report or at least mark it as paid.
I am in CA. The debt is spread over 6 seperate accounts. the highest balance is 3000 and lowest is 300. No payments have been made since 2001 so I am well past the statue of limitations.
what should my next step be?
I have read a lot about disputing debts but I do owe these -- I just want to reach a settlement and get them off my record.
One of my creditors (midland credit management) is saying that they can settle for 50% if I pay them today via check by phone. I told them that I need an agreement in writing before I will give them anything. they are supposed to fax me a document within the hour. i find the fact that they are rushing me suspicious and will probably back out especially after googling them and reading about thier bad rep.
When I build up the energy to give this another try, how can I keep from being hustled again and make a binding settlement?
Any advice would be appreciated.
Thanks
Be 100% sure when you are corresponding with any company for a s
Be 100% sure when you are corresponding with any company for a settlement. Since you will be paying less than actual and knowing the fact that the debt is already past the SOL, there will be a very slight improvement on your credit scores. But if you can negotiate well with the company for a fair reporting to the bureau, your credit scores will go up by few more points. A "PIF" status is better than an account showing as "SIF"
Have you checked out the Do it yourself section? In there you wi
Have you checked out the Do it yourself section? In there you will find letters you can send to your creditors, I know you spoke with one on the phone, but they should be find putting this in writing, here is a sample from the Do it yourself section located on this site. I suggest you send this and wait for their response before sending any money
Quote:
Creditor Name Creditor Address Date: Re: Account number: Dear Sir/Madam, It has taken me a long period of time to settle my financial problems. I am now in a position to take care of my debt; the account number of the same is referred to above. I appreciate the interest taken by your company to resolve this issue. I would like to respond to this offer and settle the debt at the earliest. The amount I suggest to settle this debt in full is $_____. However, any references to late payment or charge offs on this account should be deleted from my credit file. The fact is, I have several other companies to conduct debt negotiations with and have limited funds at my disposal. I will be able to pay only those companies who are willing to meet my terms. I have reached a settlement with a few creditors and undergoing the process with the others. I doubt if I would have enough funds to pay all at the end of this month If your company accepts the above terms, please sign the attached letter of agreement and send a copy to me. Only upon the receipt of the ??????signed agreement??????, I will send you a money order in the amount stated above Yours sincerely, |
Can I trust this letter from them?
Thanks for help.
[quote]MCM faxed me a letter the day I made the original post. Over the phone the agent said the offer was only good by the close of business that day and that I would have to pay by check by phone. I didn't because I was suspicious and I couldn't get to the Kinko's to pick up the fax until it was too late anyway. But the letter has a later due date that leaves enough time for a cashier's check by mail to reach them.
Could I just send them a check with a copy of this agreement and they would have to honor it? Or are there loopholes here that I'm not seeing?
Here's the letter:
(MCM letterhead)
P.O. Box 939019
San Diego, CA 92193-9019
Contact Information: (MCM's 800 numbers)
Current Owner: MRC Receivables Corp.
Original Creditor: Providian
Original Account Number: (correct account number)
MCM Account Number: (different from above)
Current Balance: $2,732.68
Payment Due Date: 06/27/2007
Letter Code: 06935029
This letter is to confirm the settlement agreement regarding your existing account. The payment terms we have agreed to are listed below:
Total Settlement amount: $1366.34
Due Date: 06/27/2007
After receiving your final payment, we will consider the account paid in full and the three major credit reporting agencies will be updated accordingly.*
If you have any questions, feel free to contact me at 800-###-#### Ext. ####
Please understand that this is a communication from a debt collector. This is an attempt to collect a debt. Any information obtained will be used for that purpose.
Sincerely,
(Typed collection agent name and phone number -- NO handwritten signature)
midland credit management, Inc.
*Your credit report will not be updated if the federal credit reporting period has expired, or we have previously not reported on this account.
Please tear off and return lower portion with payment in envelope provided
Settlement Certificate
MCM account number: (10 digit number)
Current Balance: $2,732.68
Amount Due: $1,366.34
Make check payable to: Midland Credit Management, Inc.
Payment Due Date: 06/27/2007
(My name and address)
Midland Credit Management, Inc.
Department 8870
Los Angeles, CA 90084-8870[/quote]
That looks good, and they will show your account paid in full in
That looks good, and they will show your account paid in full instead of settled which is better for your credit report. I would make a copy of the cashiers check and send it certified so you have proof of payment and that they received the check. Also be sure to check your credit report in a month or two to ensure they did report this correctly.
J
False debt
I just got a letter from MCM and they say it is from an account tyhat was from 1984 & it was discharged by bankruptcy in 1985 or 1986 (so long ago i can't remeber the exact date) further I was told that they bought the account in 2007, that is 23 years later. Now they expect me to what get a copy of the bankruptcy. It has never, showed on my credit report since 10 years after the bankruptcy when it was removed. The original creditor has no record of it or of ever selling it to MCM, let alone this year. Anyone have this happen