Is This Unusual?

Welcome to the Community Ed :D Alot of companies are doing settlement with customers. I guess the figure that some money is better than none.

You said you got a letter? Does this letter state that after the $1500. is paid that it will be selled in full, settled for less?

You also need to make sure that they will not sell the balance of your account to anyone. Try to get all the terms in writing, and also how they will be reporting to the credit bureaus when you are finished with the payments.

Good Luck..KAren

On the letter it says, "The balance at the time of settlement was $6,582.40. We will accept $1,500.00 as settlement of this account." Is this letter enough proof that they will honor the settlement?

It seems like it would be to me. Did they say how they are going to report to your credit bureau?

It might be, but it doesn't say that it will not be sold(the rest of the amount) to others.

I'm not an attorney, so maybe law student can chime in.

I have always pushed for, not only a settlement letter, but a CRA letter stating it was settled- usually they report as settled for less than owed, or something to that nature.

It's not unusual for a settlement offer, but is that they actually sent you a letter stating the terms. Alot of them say they will send a letter when you make the last payment- and never do!

Good Luck..Karen :D

I don't know why they sent me a payment schedule either. The person I worked together with first was supposed to be the assistant to whoever was managing my account. He at first told me that I will get a payment schedule after my first payment. After making the first payment, I called and talked to my account manager. She told me I wouldn't get a letter with my payment scedule and that I will only get a letter after I've made my last payment.
That kinda made me nervous. But now I received a payment schedule with all of the necessary info.