Chase sent offer for settlement on 4 year old business line
The letter said if we send them $78K they will settle this debt in full.
Why are they sending me this ridiculous offer? Of course I don't have that kind of money in the bank to send them. I haven't heard from them since we defaulted in 2009.
What are they thinking? Statue of limitations in Calif is 4 years (which is about up) but we also lived in AZ and there it is 6 years so I can't remember which state we opened that account..
Could they be thinking about a lawsuit this late in the game?
Any help would be appreciated!
They are settling for about
They are settling for about 75 percent (78 on 102) so it actually is not very ridiculous. If you are lucky, you incurred the debt in CA. In that case, play around and try to push past the SoL. If on the other hand, the debt was incurred in AZ, there is still 2 more years till the SoL is up.
And yes, creditors actually consider aggressive measures like suing this late into the game. They are desperate and that would be a sure shot way of ensuring they get paid.
I have to agree. A 75% offer
I have to agree. A 75% offer on a 4 year old debt isn't anything to write home about. It's obviously just a starting point.
In respect to being sued, it's not that uncommon for me to get calls from people that were served on accounts that were scheduled to expire from stats in the very near future.
It's actually a pretty profitable business model for the debt buyers. Debt that old usually sells from anywhere from a half penny to 2 cents on the dollar. If the debt buyers employ a litigation strategy and secure judgments on the accounts, they not only renew stats but they can usually sell a judgment for about 15 cents on the dollar.
You definitely should find out if the California or the Arizona statutes apply. I would call an attorney to get this information, especially considering the balance of the debt.
Good luck.
It is hardly considered
It is hardly considered aggressive suing near the SOL...it is considered good business practice. It is pretty common practice.
