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If you have any problems with the registration process or your account login, please contact us. | Advanced Credit Repair - Dealing with Collection Agencies Discuss Settling in the CREDIT AND LEGAL ISSUES forums; This may seem like a silly question but here goes. I want to settle with a creditor. They mailed me a letter stating they will settle the account for less ... 
06-24-2008, 02:38 PM
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#1 | | Junior Member
Join Date: Apr 2008
Posts: 44
Casino Cash: $133500
| Settling
This may seem like a silly question but here goes. I want to settle with a creditor. They mailed me a letter stating they will settle the account for less than the amount due, if I contact them within 40 days - is there anything I should keep in mind when negotiating? | 
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06-24-2008, 05:42 PM
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#2 | | Banned
Join Date: Jun 2008
Posts: 6
Casino Cash: $104300
| make sure that they haven't sold/referrred it out for collection, otherwise settling with them may not stop the other party(s) collection efforts. and you should probably get the agreement in writing first before sending payment. Also, pick a number you can live with and suggest that it's the most you can come up with and you had to borrow from a family member, that way they don't think that you have the means to pay more.
I'm sure the others will chime in with more suggestions. Good luck. | |
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06-24-2008, 06:36 PM
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#3 | | Junior Member
Join Date: Apr 2008
Posts: 44
Casino Cash: $133500
| Thanks for the info. Actually it is not the original creditor but a debt collector (LVNV). From what I've read, an agreement should stipulate that the payment recieved is in full, cannot be sold/bought/tranferred by anyone lese etc. I'll also include the amount I afford. Any other suggestions? | |
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06-24-2008, 10:32 PM
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#4 | | Elite Member
Join Date: Nov 2004 Location: The Republic of Texas
Posts: 2,928
Casino Cash: $381429
| Use a restrictive endorsement if legal in your state.
Add a liquidated damages clause to the settlement.
Ask for deletion of negative info from CRA in exchange for payment. | |
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06-25-2008, 04:10 PM
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#5 | | Junior Member
Join Date: Apr 2008
Posts: 44
Casino Cash: $133500
| I'm in California. From what I read, the law is contradictory. Any thoughts?
Pale Rider, what is a liquidated damages clause? | |
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06-25-2008, 04:12 PM
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#6 | | Junior Member
Join Date: Apr 2008
Posts: 44
Casino Cash: $133500
| The law regarding restrictive endorsement, that is. | |
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06-25-2008, 07:38 PM
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#7 | | Elite Member
Join Date: Nov 2004 Location: The Republic of Texas
Posts: 2,928
Casino Cash: $381429
| I don't have a sample of the exact wording, but an example would be something like this.
In the settlement you both agree that you will pay $x.xx amount, and they agree to remove the account from the CRA's. If the other party reports in the future they will be liable for damages of let's say $10,000. 6 months later the collector reports the account. At this point you collect the $10K for their mistake.
From what I have read about restrictive endorsement in California, it is a detailed process. Not sure if it has changed since I last read about it, but you would have to send notice first, then send the payment with the legal terminolgy attached. | |
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06-25-2008, 07:41 PM
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#8 | | Elite Member
Join Date: Nov 2004 Location: The Republic of Texas
Posts: 2,928
Casino Cash: $381429
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06-26-2008, 01:37 AM
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#9 | | Administrator
Join Date: May 2006
Posts: 2,294
Casino Cash: $963050
| CA has a very specific procedure for restrictive endorsements. You can google it.
It requires you to send a notice a head of time. wait a certain amount of days then send a check that is marked with specific wording.
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The information and materials in this document are provided for general information purposes only and are not intended to constitute legal, accounting or tax advice or opinions on any specific matters. Laws and regulations change frequently and their application can vary widely based upon the specific facts and circumstances involved. You are responsible for the applicability and accuracy of Information as it relates to your specific situation. | |
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06-26-2008, 02:02 PM
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#10 | | Junior Member
Join Date: Apr 2008
Posts: 44
Casino Cash: $133500
| Great, thanks for all your help. | |
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Similar Threads | | Thread | Thread Starter | Forum | Replies | Last Post | | Settling w/jdb inside SOL; no suit pending | jblair65 | Advanced Credit Repair - Dealing with Collection Agencies | 2 | 04-15-2008 11:18 AM | | Settling | acebo | Advanced Credit Repair - Dealing with Collection Agencies | 20 | 03-07-2008 07:38 AM | All times are GMT -4. The time now is 08:35 PM. 
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