I agreed to settle with Client Services Inc (Citi Credit Card)

Here is my situation. I owe about $7500 on Citi card. I lost my job in Jan 2010 and I stopped paying credit card from Oct 2010 after all my savings exhausted.

Citibank sent me settlement offer (40%) in and I made a counter offer of 25% (that's the best I can come up with help from friends). As I waiting for approval, 10 days I got a call from Client Services (1800-521 3236) who said they got my file from Citibank. I called the Citibank to check whats my status of account and they said the account has been closed and sent to Client Services and now I have to handle it with them.

Anyway, I called the Client Services and offered 25% settlement (3 installments). I called back few days later and they said my offer has been accepted and wanted me to provide bank account details for automatic payment setup. I made clear that I need to see the offer in writing. They sent me a fax (which is attached here) but there is no signature or anything on it.

Is that proof valid enough and should I go head an make the payments ? Or should I send a settlement letter (using one of the templates available here) and asking them to sign it and return ?

I just read about the safe "payment method" and everyone advises to use USPS money order. Should I do the same or can I open a temporary bank account and close after 3-4 months ?

I did not asking about deleting of negative info on my credit report with them. Can I ask for it now ? (What should I ask for what info can they really delete ?) Can they delete my the complete account history and all the late payment/account settled in full info ?

Any info or advise is really appreciated.