Recent Charge Offs Going to CA

[davestern]

I'm sure this is nothing new, but its rather new to me. I have two accounts that are in arrears, one 180+ days and the other 150+. I was recently contacted by 2 CA regarding thes debts. Both offered to settle the accounts for a substantially lesser amount. Both stated they did not own the debt, rather they were acting on behalf of the OC. One letter wanted me to make the payment payable to the OC, the other to them.

When I asked if I agreed to their settlement offers, could they delete the TL or report it as PAID AS AGREED. Both stated they could not. I advised them I would contact the OCs and ask if they were willing to. Naturally, the CAs said that would never happen and started spouting off threats that if I didn't accept their offers ithnin a few days they would be withdrawn and I would have to pay the full amount.

Believing they were full of it, I sent letters to the OC's with the copies of the offers from the CA's offering to accept the setttlement agreement with the stipulation they change the TL reporting to PAID AS AGREED.

I'm hoping I made the correct decision. Please advise.

To the best of my knowledge, the CAs have not reported anything to the CRAs. Is there any value in sending the CA's a DV letter at this point?

[Trish]

Hi Dave. Welcome
Can you tell me how much the debts are for and who the OCs are?

[davestern]

One is for Bank of America for just under $17K. Settlement amount is $2,500. CA wants payment payable to them. The other is with Target NA for about $5,500. CA instructed Payment payable to Target. BOA Account is already in Charge Off status. Target is close.

[Trish]

I think you should wait and see if you get a response from the OCs.
Hopefully they will agree to report it as paid.......with no mention of a CO. Otherwise it will not help your score at all.
Only problem is....if these are still within SOL......that is definitely enough to sue over......so you don't really have much leverage, I'm afraid (if they were to say no).

If there is ANY way to keep Target from getting to CO status.......you should do what you can. Even if it's reporting lates.......that's WAY better than a CO.

OH.......beware of settlements too. If you can, make it a stipulation (if they agree to your offer) that they DO NOT sell or transfer the unpaid balance to any other 3rd parties (CAs). That does happen. You think you've settled and it's all good and then end up getting a collection letter from a CA months later for the remaining balance.

Good luck and keep us posted!

[davestern]

Great Info . . . Thanks!

[Trish]

You're welcome.