Who owns my debt?
Date: Tue, 03/30/2010 - 19:09
I missed my citibank credit card payment for about 10 months, started having some income again and called the the credit card company, the refer to the Debt collection law firm (not citibank), which informed me that recently I got sued at local court and offered if I want to settle the debt ($14000) with a reduced amount of $10,000 and spread out 12 payments, payment to citibank. In panic I agree to that agreement. They are sending the papers work. I have the following questions
- Should I agree to the settlement, or tell them I want to pay them in full (14,000) and still spreed out over 12 months (I don't have the money to pay off now) but the difference is that one I done with the payment I presume they will put on credit report as 'Paid in full' as opposed to "Settled". How much is this difference between credit score for this
- If I paying them as agreement, and sometime as the end of year I got better income and want to pay additional amuont ($4000), will they accept that and update to citibank as "Paid in full"
- Should I agree to the settlement, or tell them I want to pay them in full (14,000) and still spreed out over 12 months (I don't have the money to pay off now) but the difference is that one I done with the payment I presume they will put on credit report as 'Paid in full' as opposed to "Settled". How much is this difference between credit score for this
- If I paying them as agreement, and sometime as the end of year I got better income and want to pay additional amuont ($4000), will they accept that and update to citibank as "Paid in full"
Have you checked the local court house site to confirm whether y
Have you checked the local court house site to confirm whether you have indeed been sued by them or not? Have you received summons from them?
I'm saying this because it has often been used by the collection agencies as scare tactic to make the borrower pay. I'd suggest that you first get the things clarified and then decide on your next course of action.
The status of 'paid in full' vs 'settled' wouldn't have much difference since the negative would continue to stay on the report for seven and half years. If you don't have an immediate financial target to achieve like- getting a mortgage or auto loan, you may consider settlement instead of paying the account in full.
