Negotiate before court date?
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Posted by gman (209.180.138.211) on July 17, 2002 at 15:52:28:
I have a Cap 1 account that charged off early last year in an amount of about $8500 due to my business dramitically falling off. I am in Arizona & was sent a couple of letters from collection agencies on this account(never replied). I recently was served a summons for suit (Cap 1 as plainteff for amount of $9500 plus up to $1,000 in attorneys fees!). I called the attorney representing CAP 1 to try & negotiate a settlement(I cannot have a judgement or lien of public record in my type of business). When he answered the phone he gave canned statement that I was communicating with a "debt collector". It sounded like all the boiler plate legal info from debt collectors. Told him I was defendant and wanted to work out settlement. He put me thru to paraglegal that "handles that stuff". In speaking with her she said that the "law firm" had authorization to negotiate on behalf of CAP 1. Due to my inability to pay off the entire amount(I owe $17,000 on 4 other CC's that I have successfully worked out payments prior to charge offs & yes i do qualify for chapter 7 but only as very last resort) we verbally agreed on $6900. Her are my questions: 1)Sorry for gory detail, but does this sound legitament in dealing attorneys for cap 1? 2) Secondly they said anything below 65% of amount owed would require me to draft up the offer & compromise and give an explanation to as why. Do I have any other options? 3) If settlement paid is less than owed, how does that affect credit rating and will that be the last that I hear from this and get rid of dark cloud once and for all?
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