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Debt Settlement Proposal to Collector

Date: Tue, 03/08/2005 - 05:07
Submitted by jtucker on Tue, 03/08/2005 - 05:07
Posts: 114
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Here is a formatted letter I found that I like the content of hope it helps some.

Jerry

debt settlement Proposal to Collector
June 13, 2001
Your Name, 123 Your Street Address, Your City, ST 01234
ABC Collections, 123 NotOnYourLife Ave, Chicago, IL
In Re: Your name & Account #

Dear Collection Manager:

It has come to my attention through the credit bureaus that you claim I owe a debt to your agency. While I have yet to have the debt verified to me as legitimate through my right of the mini Miranda, I can however save us both some effort & time by "Settling the debt out".
Below is my offer.

It is not a renewed promise to pay nor does it constitute any agreement unless you sign and return it. Note, I have not agreed yet that this debt is mine and have the option to seek further proof from your agency of this debt. It has also come to my attention that your agency regularly purchases debts in the course of doing business.

Suffice to say, you hold all the rights to report the debt to the credit bureaus as you see fit and you can change that listing at any time as the source reporting the debt.

I am sure you are aware of my right to dispute this debt and request full proof of the obligation. Paying this unverified debt to you means little to me if we cannot mutually agree that you will report the debt as mentioned below.

While I realize that your purpose is to collect debts as a collection agent, I am also aware of what a paid collection would represent for me, which is not favorable. That being said, I have concurred through the bureaus that you have the absolute right to report this debt as you see fit or not report it at all.

Please do not quote to me that you are unable to change the listing or I will be forced to cease and desist our communication and request full lengthy verification of the debt.

My goal is to arrange a term acceptable to both us since this debt is questionable.

I will pay your company the amount of $xx as payment in full for the full satisfaction of this account. Upon receipt of the above payment, your company has agreed to change the entry on my credit reports to "Paid AS AGREED". You further agree to remove all previous notation of delinquency.

If you concur with these terms please acknowledge with your signature and return it to me. You agree the terms herein are confidential and you have the authority to make such decisions. No payment will be made without written confirmation.

Upon receipt of this signed acknowledgment, I will immediately mail you funds priority mail. This is not a renewed promise to pay but rather a restricted offer only. If no terms can be met, no new arrangements will be made and the offer will be void.

Name of Creditor:
Signature of company officer
Date
Sincerely,
Name. Address, Social security number, NOTE: Do not sign your name!


Quote:

Here is a formatted letter I found that I like the content of it. Hope it helps some.

It is really helpful

Keep posting :)

Vikas

Notes : Mods, can you please format the letter a little better for visibility.


Submitted by Vikas on Tue, 03/08/2005 - 09:54

Vikas

( Posts: 2019 | Credits: )


Something really very informative. :D

Regards
Roxette


Submitted by roxette on Thu, 04/07/2005 - 10:41

roxette

( Posts: 4009 | Credits: )


Just curious. What settlement did the collectiion agency offer, and they they remove derogatory information from your file with the three credit reporting agencies?


Submitted by on Fri, 04/29/2005 - 06:35

( Posts: 202330 | Credits: )


I have not used it yet.

I am first of all going through validation of My Debts so I can see which ones are really mine..

My reports are a real mess as I have not viewed them EVER in years..(yeah dumb I know).

But I susspect a lot of Cross-pollination/commingling of my acount info with my Adult SON (esp Medical Bills) who has the EXACT same name as me, but is III as I am JR. But most correspondance etc...we use just our Primary part of our names..and not the Suffix :( (again Stupid I know)

BUT....after I get that straighten out I will more then likely asked for a settlement with a Paid for Deletion from my CR.

Jerry


Submitted by jtucker on Fri, 04/29/2005 - 06:45

jtucker

( Posts: 114 | Credits: )


I will pay your company the amount of $xx as payment in full for the full satisfaction of this account. Upon receipt of the above payment, your company has agreed to change the entry on my credit reports to "Paid AS AGREED". You further agree to remove all previous notation of delinquency.

I would recommend changing this part to say payment for deletion of the account listing..

As a collection account can't be made positive with paid as agreed listing, it would still be negative on the credit report.

Also I posted a threat in credit repair about how to fix mixed credit files when others information is showing up on the credit report, best of wishes with this.


Submitted by Pammila on Fri, 04/29/2005 - 06:58

Pammila

( Posts: 112 | Credits: )


As far as I know, when any lender see a collection account in the credit reports, even though it says, "Paid as agreed with zero balance", it is a neg mark in it which reduce points in the score. So the best thing to request is to DELETE from the credit reports: "I will pay your company the amount of $xx as payment in full for the full satisfaction of this account.Upon receipt of the above payment, your company has agreed to DELETE this account and all previous notation of delinquency from my credit reports." It will be more effective.

Cesar


Submitted by on Sat, 07/21/2007 - 12:18

( Posts: 202330 | Credits: )


I used this exact debt settlement letter and they did not respond. They did however receive judgement in the court and I found out by my bank account being locked.


Submitted by on Thu, 01/31/2008 - 18:14

( Posts: 202330 | Credits: )


I think this is a great letter & would like to use it but my account has not only been turned over to a collection attorney but the National Arbitration Forum. How can I use this letter at this stage to offer a payment plan? Also, can these companies legally "lock" your bank account?


Submitted by on Sun, 02/03/2008 - 22:19

( Posts: 202330 | Credits: )