Ready to settle with CA

When negotiating you can insist on certain terms. One of those terms should be that the amount paid will satisfy the entire debt and that the remainder will not be reported to the IRS as a chargeoff. (this could have tax consequences for you) Draw up the agreement and get a fax number where you can send it. Insist that it be signed and returned to you before you make a payment. Because you are not sure about some of the chargs, you should also have a dispute on record showing that you are not in agreement with the full balance due. Good luck.

I had a conversation with CA regarding "settling" my account. They were insistent that they fax me the agreement, stating that they can not sign anything. The fax would serve to outline the "settled" amount. After receiving the money order, they would send me a confirmation of receiving the monies, and then the original creditor would follow with a letter stating that the account had been paid and state that the activity would be reported to the three credit bureaus. I asked for letter in lieu of the initial fax. The CA said that since I was going to submit payment in the form of a money order, then a fax was the means of communication. If I was going to authorize them to auto debit my banking, then they would send a letter stating that on XX date the account would be debited etc.
I thought I would have better control of insisting on the terms (letter requesting signature on agreed terms, etc.).
Does this sound legit?

It is alright if they fax you the agreement if it contains the correct terms and is on their letterhead. Whether you pay by money order or check does not control how they can communicate with you. You can hold out for a letter listing the terms of the agreement even if you pay by money order.

You will see many posts on here advising that you do not pay by check. I have personally seen cases where someone paying by check had it processed electronically for more than the amount written. I have also seen cases where months later the CA runs another electronic transfer for more money. Giving them a personal check gives them access to your account number and routing number. Always protect yourself.

sliding a cold can of *lonestar* to texaslawyer. Don't bellyache, it's all I got neighbor.

*chuckle*

Thank you for your advice. I am in possession of the CA's fax. The verbage states "Settled in Full." I have two weeks to make the payment. Does it even matter at this juncture to fire off a letter requesting signature of the terms covered in the telephone conversation. Does the receipt of the fax serve as a binding agreement - that is does it take precedent over a letter I send stipulatiing that I am requesting a signature to the terms. On the fax it simply states that unless the money is received by the due date, the entire balance is due.

I'm so close to closing these chapter, yet I don't want to be missing some step that will prevent some problem in the future.

Your advice....

The only reason it would be reported to the IRS is if you "saved" more than 600 dollars in the settlement.

Settlement letters are computer generated. Sometimes they will have a signature affixed to them sometimes they won't. You can choose to accept or not accept the offer. If you choose to not accept the terms then they have the right to no issue you another offer and continue to collect the full balance.

hi ya's FYI!

Reporting savings in excess of $600 is that automatic or discretionary by the creditor? The CA told me that credit card companys don't issue 1099s!

It is done by whom owens the debt. And if you were told that credit card companies do not issue those then you were lied to.

Some report the chargeoff, some do not. Either way, paying a tax bill on the chargeoff may be a lot lower than paying the entire balance, and it won't come up until next year's taxes if they do report it.

Oh yeah. I will take that Lonestar, texasconsumeractivist... and the Debtcc points for posting this. lol!!!!!!