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Normal For Bank (CC ) to ask for payment first then settlement letter ?

Date: Fri, 05/28/2010 - 16:58

Submitted by anonymous
on Fri, 05/28/2010 - 16:58

Posts: 202330 Credits: [Donate]

Total Replies: 12


I'm trying to negotiate reasonable terms with Discover and B of A. Both of them are requesting payment up front half before sending settlement paper. Is this normal ?

Both of the loans are with original creditors.

Ben


Quote:

Originally Posted by frogpatch
They are requesting 50 percent before before offering a settlement? Is that what you are saying?



B of A is willing to setup 4 installment payment. After the first installment paper there willing to release settlement plan. Discover is requesting full settlement upfront before releasing settlement paper


lrhall41

Submitted by on Fri, 05/28/2010 - 17:09

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Quote:

Originally Posted by frogpatch
They are requesting 50 percent before before offering a settlement? Is that what you are saying?


B of A is requesting first payment out four before releasing settlement paper. Discover is requesting lump sum payment no payment plan before settlement paper.

Is this part of normal practice ?

Thank you
Ben


lrhall41

Submitted by on Fri, 05/28/2010 - 17:36

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Squeezing as much as they can at the beginning is normal for them! You need to send them a letter telling them what your best offer is and politely, but firmly, state your present situation! You seem to be comfortable with using comfortable writing but you will need to step up your sentence struture to make a more professional impression!


lrhall41

Submitted by Frogpatch on Fri, 05/28/2010 - 17:48

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That doesn't sound like it SHOULD be 'normal' if the company is TRULLY willing to help you. I know 'money makes the world go around', but,..if a company/individual is REALLY willing to help, they wouldn't ask for money first. I would be careful and go with your 'gut feeling'. Just my '2 cents'. BTW-did they tell you they needed payment FIRST at the beginning?


lrhall41

Submitted by sdchargers_63 on Sat, 05/29/2010 - 07:53

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Discover rejects my payment plan. In fact their requesting full payment of settlement lump sum. According to all the settlement rep that I've spoke with refuses payment plan and settlement letter first. I'm not sure how everyone on the board is able to receive letter first.

B of A is willing to setup four auto deduct payment plan. My account is set to charge of 5/31/2010 . They just will not budget. According to both of the agency their willing to send everything to attorney office and charge it off.

I just cant afford them to charge off my debt.

Maybe I will negotiate minimum payment than ask for settlement .


lrhall41

Submitted by on Sat, 05/29/2010 - 18:20

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May I record the phone conversation since their refusing settlement letter, of course with their permission. My state requires permission before recording. This way they can't deny providing me with settlement letter after a payment. I can always sue discover financial.


lrhall41

Submitted by on Sat, 05/29/2010 - 18:21

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A charge off gives creditor the opportunity to sue or sell your debt to debt collectors on pennies for dollar. Know if yours case is turned of to attorney think about the ridiculous amount of attorney fees that will be collected upon judgment. Don't think the attorney will settle less than original creditors. Personally, I would avoid attorney route and settle it with original creditors. When too many players get involved in a game the debtor becomes a shopping cart.

I can't afford to be a shopping cart, at this moment at least.

Hope this helps. This is coming from my consumer attorney. I have hired a litigation lawyer to negotiate for my real estate.


lrhall41

Submitted by on Mon, 05/31/2010 - 13:11

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Bof A also told me I had to make a payment before the letter went out but it was really really small like a couple of hundred dollars and the letter did arrive later that day on my fax as promised. But Chase and capital one sent the letters before I sent them any money. I refused to give them any money until I had the letter and they were fine with that.


lrhall41

Submitted by Debt Free to Be on Thu, 06/03/2010 - 20:53

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