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Re: Settlement on accounts?


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Posted by statutereader (207.179.105.174) on January 14, 2003 at 11:10:31:

In Reply to: Settlement on accounts? posted by Robyn on January 14, 2003 at 10:25:58:

I can only speak from personal experience. I settled many old accounts, even those that were approaching the SOL and those who filed suit. What worked for me is:

1) Having already determined a $ amount that was reasonable in my head. For example, if I owed $1000, $600 was the highest I'd go, either take it or leave it.

2) Have in mind your payment arrangement. If you can afford to pay it off in one lump sum, then let that be your Ace in the Hole. Most CA like lump sum payments, but you don't have to let them know up front you can pay it like that.

3) As terms to your settlement have them stipulate to removing the entire entry from your CR. I know most people will advise getting a "Paid as Agreed", but I personally do not see how this benefits you having a "Paid as Agreed" from a CA. An OC I could understand, a CA, I don't see it?!

4) NEVER NEGOTIATE ORALLY!!!! GET ALL THE TERMS, INCLUDING $ AMOUNTS AND PAYMENT ARRANGEMENTS IN WRITING!!!!! If you do negotiate over the phone... that night type out a letter detailing the exact terms discussed and MAIL IT TO THE PERSON YOU SPOKE TO... it doesn't have to be sophisticated, something like, "Per our conversation.... we discussed these things and I'm looking forward to settling this matter asap, please respond within 10 days of the date of this letter that you are still accepting these terms." Yadda yadda.... If they do not want to put things in writing then call it off... something doesn't smell right.

5) Get a MUTUAL RELEASE. Once you have satisifed your debt, have something else in writing that says they can not come after you for any matters associated with this account! Sometimes, CAs like to be ignorant and sell the balance of your acct to someone else!

Good Luck!


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