Advice on settlement after charge off

Hi,

That depends on?? the collection agency. Who is it? Get a settlement letter before you make any payments, that way if they (illegally) sell it to a junk debt buyer and try to come after you, you can protect yourself. Also, make sure that after you make your payment, get a follow up letter that says the debt is paid and closed.

I have several settled accounts all of which were settled after charge off.

One thing is to send the debt validation letter to make sure the collection agency is actually collecting on a debt you owe and that they are the one to actually be collecting on it.

As already mentioned, don't pay a penny until you get something in writing from the collection agency outlining the agreement.

I worked out a couple settlements over the phone. They didn't accept my initial offer came back with a higher amount, I got it over several payments, etc. Worst they can do it say no to your offer and if you can't pay more then do agree to anything. Heck, it they don't accept hang up and call back a week later, maybe they will accept it then.

One CA was giving me a hard time when I called about a settlement and wouldn't agree to my offer so after hanging up I sent them a letter with a different offer. I didn't want to take their crap on the phone again. So you don't have to call on the phone either. You can put your offer in writing and see if they write back accepting it or not.

Get wording that the account will be considered settled in full and that the CA will send a letter of zero balance once your funds clear. Or something to that effect.

For one account I called about the letter the CA sent to document their acceptance included the line "Our client has authorized us to release you from all responsibilities in regard to the debt for $4,000.00".

I thought that was a good line in case they tried to sell off the balance. Maybe change that around. If you send a letter to a CA offering settlement state something like, "Upon your acceptance of my offer of $xxxx.xx payment, will release me from all responsibilities in regard this debt and the account will be considered settled in full."

Or something like that. So even if they write back and accept your offer amount but don't specify in their letter it will be considered settled in full and the balance gets sold off, you can go back and show what your offer was that they responded to and accepted!

I have one account that was settled when I was still in a debt settlement program. The balance has been sold off to LVNV and that situation is still being played out. Send off a DV to the couple CA's contacting me about it and haven't heard back yet.

So get it in writing and be as detailed about it as possible!

Thanks for the advice, I'm still working up to calling and seeing what they might offer. I will have to have something that i can make payments on. I will definitely ask for any agreement in writing. With everything that I have read, these CA's that get these accounts after they are charged off, are the worst about settling and then turn around and sell the rest to someone else.

Does anyone have a sample letter to send to CA to remove charge offs? I want to settle two accounts that have been charged off but do not know what say in the letters. Please help - Thank you