Re: Lump Sum Settlement - Effect on Credit Rating

Posted by Why Chat (209.240.198.61) on April 13, 2003 at 08:55:23:

In Reply to: Re: Lump Sum Settlement - Effect on Credit Rating posted by Last Dime on April 13, 2003 at 00:37:14:

When you make a "settlement" agreement with CA #1, THEY are bound to honor it, so THEY agree to accept XX$ for FULL payment of THEIR interests on your account.

However, this does NOT prohibit them from transferring the BALANCE to another CA, the balance doesn't "disappear". except with a 1099c from the OC. or in BK.

Sometimes it just goes to a "mailing list" CA,which is how you get all those offers from sub-prime lenders,sometimes it gets picked up in a bundle of similar accounts by a garbage eating CA like Camco.

There is NO legal way to prevent this, no "restrictive endorsement" no "settlement agreement" can prevent them from disposing of the dregs of your account. (It would be called "restraint of trade").

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