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Close to setting 17K debt

Date: Sun, 04/26/2009 - 11:59

Submitted by chuck1111
on Sun, 04/26/2009 - 11:59

Posts: 6 Credits: [Donate]

Total Replies: 15


This is a double post, I did not intend to post in the other discussion thread.

Currently working on settling 17K of unsecured debt for 40% of what is owed. I signed up here to post a settlement letter I received and wanted to know of there is anything missing. I told the company I wanted to have the negative comments removed from my credit report. Does this letter indicate this will be the case?

I also have not received from this company a letter validating they own the account. I did however call USAA and USAA gave me this phone number of the company that sent me this letter. Should I still ask for a letter of Validation?

Am I missing anything else?

RE: SETTLEMENT OFFER

To Whom It May Concern:
Our client has agreed to settle the listed unpaid account balance(s) of $5,431.16 for $2,173.00. As agreed, your payment of $2,173.00 must be in our office no later than 04/30/09. Once this payment is received, your file will be updated to settled in full. Please reference your file number for proper crediting. A receipt will be available 30 day after the final payment posts to your account. You understand that this settlement does not completely resolve the loss that was sustained by USAA, and certain restrictions may still be applied to any present or future business relationships with this or other USAA companies. A settled-in-full receipt will be available 30 day after the final payment posts.

Sincerely,
Steven Couteau
Collection Manager

NOTICE: THE INTERNAL REVENUE SERVICE REQUIRES FINANCIAL INSTITUTIONS TO FILE A FORM 1099-C (CANCELLATION OF DEBT) TO REPORT THE DISCHARGE OF INDEBTEDNESS OF $600 OR MORE.

THIS IS AN ATTEMPT TO COLLECT A DEBT.
ANY INFORMATION RECEIVED WILL BE USED FOR THAT PURPOSE.
THIS COMMUNICATION IS FROM A DEBT COLLECTOR.
'accountservices-usa.com' Link deactivated per TOS rules, by Shazzers


well lets see I was thinking about this letter http://www.debtconsolidationcare.com/letters/sample25.html

getting correct wording is a little difficult.

From the letter sent to me It seems "your file will be updated to settled in full." is clear but I still wonder if I am missing something here. I don't want to leave a loophole that I will regret later.


lrhall41

Submitted by chuck1111 on Mon, 04/27/2009 - 08:20

( Posts: 6 | Credits: )


i personally would send crrm the letter linked as a settlement offer to ca. if they sign it, the neg tradeline should be removed from your credit file..however; what the ca has sent you, will not remove anything from credit file. updated to settled in full does not=deletion of tradeline. its just the hidden way to spank you for another 7 years...


lrhall41

Submitted by on Mon, 04/27/2009 - 09:29

( Posts: | Credits: )


Is a tradeline what is written next to Status on a credit report. I pulled my credit report last month and there is no entry indicating a collection agency owns one of my accounts. There is no collection agency company on my credit report at all. Is this a good thing? How does this affect getting the tradeline deleted?


lrhall41

Submitted by chuck1111 on Mon, 04/27/2009 - 09:35

( Posts: 6 | Credits: )


My first intention is to settle my debt 2nd deal with the credit report score. Any idea how much difference it makes in a score having a statement that says "settled in full less than the balance" vs "Paid"?

The account are not current they show charged off as of Nov 2007, that applies to both.


lrhall41

Submitted by chuck1111 on Mon, 04/27/2009 - 09:42

( Posts: 6 | Credits: )


if your intent is to settle, than what the ca has sent is perfect. settled in full is definately better than an unpaid collection. however, in scoring models, a collection is a collection. Neither is better interms of scoring. An unpaid collection is scored approximately the same as a paid one. Might be a few points difference in the two, but definately not much...like under 5 points..


lrhall41

Submitted by on Mon, 04/27/2009 - 09:46

( Posts: | Credits: )


but getting the ca to agree to dletion as in the letter linked above, protects your credit score by removing the entire account...atleast the ca collection account..the original creditor account will likely remain period for the 7 years time reporting period..but removing the collection agency collection account from your credit can impact it by several points..


lrhall41

Submitted by on Mon, 04/27/2009 - 09:49

( Posts: | Credits: )


you don't have a collection agency involved? if not, then the original creditor stills has the account then only one entry on your credit file pertaining to this account..sorry i misread your posts..anyway, settled is definately better b/c it prevents you from being sued on this debt..but if oc agrees to letter linked, then all references to this account will be deleted from your file. which is the best case scenerio for you..but if the original creditor will not do that, settlement is a good thing..


lrhall41

Submitted by on Mon, 04/27/2009 - 09:52

( Posts: | Credits: )


Since my credit report does not a CA account I am assuming I don't need to worry about the deletion. I can deal with the USAA account remaining until 2014. They are wanting to have the account reported a settled in full for less then the balance. I was reading it is in my best interest to get them to report it as "PAID" nothing else. I wonder if I should fight hard for this of it will effect my credit score by about 5 points.


lrhall41

Submitted by chuck1111 on Mon, 04/27/2009 - 09:55

( Posts: 6 | Credits: )