20k+ settlement - request advice and tips

Yes, you can send over the requests for settlement via email but yes, they will be less effective than negotiating directly over the phone.

You should go after Chase and Discover first. BoA is easier compared to the others. I don't have any personal experience in dealing with Universal.

Yes, if you call your creditors to settle, they will be rude/aggressive, Discover especially. But this is not always true. You might land up with a stubborn but pleasant guy on the other end of the line.

Adopt a normal tone. Apologetic or aggressive won't make the situation any better I think.

Yes, you can ask for time to consider the offer but the length of time the banks will allow might be less than 72 hours.

They are NOT going to negotiate in writing.....all negoatiations need to be done on the phone.

I see a major problem with the fact you only have $4k to settle all these accounts with...and I dont see it happening. You only have enough really to settle with Discover. What are you going to live on if you spend it all?sw

Please listen to SoapLady. If all you have to your name is $4k and you're still jobless, don't spend it settling credit cards. You'll need that money to live on. I also suggest you take it out of whatever account you might have and close the account so it can't be levied.

I would call the lenders and tell them you have been unemployed for a year and have NO income, no savings, etc. Tell them you're living for FREE with a friend/family member (whatever the case may be) and that you have no way of paying.

If they sue, they sue. They can't get anything from you if you have nothing to give. Once you're working again, you can set up payment arrangements.

Settlements, hardship arrangements, etc. aren't going to be of any help to you if you have no MONEY.

Thanks all of you for your replies..

soaplady--- good question...the only money i have probably spent in the last 2 yrs is to make cc payments..

I feel I want to put this behind me and move ahead..if i can;t get a job, i am thinking of starting something on my own..all of this requires visibility nowadays..so far i have been pretty low profile being a quiet person..

Another thing is knowing i did the right thing to the best of my ability..

Ohiogal --
about suing...when they sue you, what exactly happens..does it mean u can be tried in a court or arrested?

How soon should i move my money..or rather, how soon can anyone take money out of my account without my permission?

Looks like I will have to make these phone calls myself..just hope I gather enough strength for that!

Thanks...

Quote:

No one can levy your account without first obtaining a judgment against you from a court of law.

Hi,
Try to get a home-based job. It will help you lead your life and settle your bills one by one. Try to earn some money every month; it'll hep you improve your situation.

Thanks all..I would like to post an update..there is a slight delay since i could not load this page a few times when i tried..

I finally took the plunge and made some calls..

BOA - transferred me 2-3 times and I spoke to a guy that said he was from NCO collections and they had my account. But then he put me on hold for a long time and hung up..

Chase - Chase also transferred me to a number and a lady called Sheila spoke to me..She was quite agrressive in getting my info and made me repeat it many times.. I asked her to confirm that she was at Chase..she said yes first then also said she was from a collections agency..

I asked her to explain the whole equation but she ignored me which made me think before asking her for any offers. She said Chase owned my debt and they were working for Chase.

I asked her to send me a debt verification letter and asked her whose name it would be in - chase or allied..at this point, she put me on hold for a long time and then i had to hang up.


I also called Discover..they gave me a deal of 3867..which is not a big deal considering that I have paid that amount in interest alone in the past 2 years on a balance of 7k odd.. they asked me to pay 2k down and split the others over 2 years, 190 something per month..
this offer does nt make sense to me..i kept telling them that any prolonged plan made no sense since i had no income..and i preferred to settle in a single payment..

I think they asked for the 2k down because that was my initial offer to them..i have to call them before this offer expires, or they will sue on the 30th...

what are the chances of them accepting even 2.5k or 3k max for everything? that wouldn't be bad....

***if an account is in collections, will they accept lower offers than the company would? how much% would be a good starting offer..or is it more like an open auction where you can offer any amount?

appreciate your continued assistance...thanks!

Another update -

I got thru to NCO and they offered me something which is just above 20% with the following conditions -

- give them bank acct information now..before they submit to BOA for approval..date on check will be saturday

- they will send me a letter saying 'settled in full' or 'settled no dues' after BOA approves

- i have to call them back before today end of day..


Problems I have - time given too short, does not give enough time to get an offer from someone else like discover to counter this..

He said the acct was charged off this month itself and is very 'fresh'..does that mean that they won't bother me for a while??

If I had to choose betn paying X amt to Discover to stop the judgement, and taking care of this collection, what should it be? The judgement wins I guess...

I don;t think i have enough to satisfy both of them right now..

And I also would like to see the letter B4 giving them any check information..

What do you all think..?


thanks...

From what Ive read, Discover usually will not settle below 50%, and they DO like to sue.

BOA/NCO-dont give them anything without an agreement in writing first. Tell them the IRS froze your bank acct, youll send a money order. I would try my best to get Disco out of the way first, NCO will probably have your account for at least 30 days or more.

There is no such thing as paying a CA toward a settlement before their client even approved the settlement. Then again collectors would tell you any story to access your money. People who pay CA's before they got in their possession of a written, documentary proof of the settlement, deserve what they'll get. At the very least, ask the rep for his supervisor, ask the supervisor to record the call, then have them identify for the record themselves, their client, and account number, and the exact terms of the settlement. If they say it's "subject" to any approvals, then it's no settlement at all and they can take your money and still hold you liable for the remainder of the full balance.

Quote:

I think you lost me. It's the consumer who should record it, not just the CA, so that if they make a verbal representation, they can't later claim it never happened. Why would the CA agree to the consumer recording? If they tell the truth, they would, just like Sears' CA agreed to let me record my calls with them. But if they're full of it (as they often are), they would refuse and this should give the consumer another tip as to how serious (or not) they are about settling.

Hello All,

I am posting a late reply but have an update..i finally decided to settle with Discover..my payment was made this week. They also refused to email me any proposal letter, and agreed to fax it only after getting my bank info. Since I was hung up on this, they dated the payment for 3 days hence...April 30 was my last day before they were sending to the lawyer, so I had a very short window of time.

they offered multiple payments but finally agreed on a single payment of 30%..

I feel in limbo until I can see the changes to the credit report because my money is already gone. My bank transaction shows a payment to Discover, so that;s a plus point at least.

Now I have to settle with the CAs..I think that will be tougher, and I will definitely have to wait until I actually have some more funds.

Thanks for your support, everyone! It meant a lot..I will keep updating as I gain any further resolution on the other accounts..