Re: Ready to settle with collection agency -- bad idea?
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Posted by LadynRed
(199.91.33.254) on February 19, 2003 at 10:50:02:
In Reply to: Ready to settle with collection agency -- bad idea? posted by IronChef on February 19, 2003 at 10:34:26:
Has this account been charged-off yet by MBNA ?
When was the last time a payment was made to MBNA ? As for their statement that they've 'already verfied the debt per the FDCPA', that's pure hogwash. If you didn't demand VALIDATION, then their just sending you a demand letter is NOT validation per the FDCPA - its crap. I would NOT settle with them for ANY amount without a WRITTEN agreement with yours and their signatures on it as to the terms. You want the CA's entries on her credit report DELETED, you want the account noted as 'paid as agreed' or 'paid' - paid charge-off IS very bad, 'settled' is only marginally better. It won't help her credit report a whole lot. You also want to get a 1099-C for the settlement. You'll have to pay taxes on it next year, but that will be far less than having another CA come after you later for the amount they 'let go'. Lastly I would NOT give a CA any of your bank information. They're trying to twist your arm by saying e-debit is the ONLY way they'll take payment - its bull to make you pay NOW. Your account would be vulnerable to them going in and taking it ALL whenever they want. Do NOT agree to this. If they're willing to settle now, even if they end up revoking the offer if you don't pay THEIR way, believe me, you WILL be offered another settlement later. There is also NOTHING to stop you from turning around and drafting your own settlement offer on YOUR terms. They want money - if your offer is ok with them, they'll take it. I wouldn't send them a dime without a written agreement on YOUR terms. Otherwise you're leaving yourself open to all kinds of nastiness. BTW, Discover is very nasty. They will sue VERY quickly at or just after charge-off. I'd focus more efforts on them than on MBNA.
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