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GC Services settlement - Should I settle the debt with the CA?

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Well, I just took another hit from James Lombardo. My account with Citi that he was supposedly working on has gone to collections at GC Services.

What should I do? I have heard nothing from this CA yet, and it has been with them since May.

I would like to settle the account but do not want to deal with a CA if I don't have to. Of course, Citi is telling me that is the only way, despite the situation. At first, they asked me if I had been contacted by or had contacted the CA myself over the last 30 days, to which I responded "no". Not sure if I hurt or helped myself with that one.

Should I DV them? Would that "kick" the debt back to citi?

Should I just try to do GC Services settlement, and demand that they remove their listing from my credit report?

Sorry for all the q's--very new to dealing with this stuff (which is why I hired a third party to begin with...)

Thanks for any assistance...

Sorry-the account has been with the CA since 2/08

Sub: #1 posted on Wed, 08/13/2008 - 11:06


I would DV them and put in the letter that you have not received any corespondance from them but they appear on your credit report. It is a premptive DV meaning you want the debt validated even though you have received no contact. They can not continue to legally report negative information to the CRAs until they validate. I suspect they can validate since this debt is very new if they decide too at which point I would offer 50% for the GC Services settlement. You will be waking up a beast as soon as you start this process so make sure you are ready to deal with them and have a settlement offer saved up. If you really want to get their attention then dispute it with the CRAs at the same time that you DV them but this will probably lead to either a settlement or a trip to court.

Sub: #2 posted on Wed, 08/13/2008 - 11:17

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Thanks! I was under the impression that a DV letter was intended (at least in cases like this one) to kick the debt back to the OC.

Is that a possibility?

If not, can I do the GC Services settlement as effectively with the CA (as I have been doing with my OCs)? Are there additional steps I need to be aware of when dealing with CA?

Thanks so much!

Sub: #3 posted on Wed, 08/13/2008 - 11:56


BTW, for some reason the CA is not yet reporting this debt as a separate trade line. If I were to settle with them, would I be able to keep them off of my report?

Sub: #4 posted on Wed, 08/13/2008 - 13:39


As long as the CA can validate then you can settle with them similar to the OC. There is more protection for you with the OC in not having the debt resold but thats not much of a choice after the OC has sold it to a CA. If the CA is collecting for the OC then it is possible that a DV might get the CA to send it back to the OC but I suspect the OC would just send it on to a different CA.

The debt should only be reported once no matter who owns it. Your score is not affected by the listed owner. If you settle it I would try to get them to delete it anyway.

Sub: #5 posted on Wed, 08/13/2008 - 14:10

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thanks again for the reply. I just got off the phone with Citi and they were extremely rude.

Apparently Citi still owns the debt...they have just contracted a CA to collect it.

At this point, should I expect to be able to have "charge-off" removed from my report by the CA? Or at least a full delete of the entry? If not, what is the point in settling? (I am insolvent and could go the bankruptcy route, but have been trying to avoid it....)

Thanks again.

Sub: #6 posted on Wed, 08/13/2008 - 14:44


Some of the reasons to go for GC Services settlement are as follows:

1. Your credit score would be better with settled debts as opposed to charged of deliquent debts.

2. Avoid court

3. Eliminate phone calls.

If you settle then charged off will come off and it will show as settled for lesser than owed unless you pay the full amount. Sometimes you can get them to delete it once settled though. Another option is to dispute the settled debt with the CRAs and sometimes the OC won't verify so it just falls off your report.

Sub: #7 posted on Thu, 08/14/2008 - 06:29

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