Settlement offer to collection agency rejected

[idonthaveaname]

I have a balance on a couple credit cards under $2,000 total. The collection company will not under any circumstances go lower than 65% of the total. The agency is collection on behalf of First Premier Bank so they don't own the debt. On the phone I got nowhere, and in my settlement letter 30% got me nowhere.

Should I wait for the debt to be sold and wait to try my luck with the new owner, or should I write another settlement letter.

Any advice

[Lian]

Are you also asking for CR deletion in addition to settlement for less than the full amount? If so, which is more important to you, getting CR deletion to improve your score, or settlement at a low amount to save you $$? If PFD was part of your offer, you might want to consider dropping that condition.

Regardless, remember that the decision-making is also going on at their end.

If they become convinced that you are unwilling to pay what they want, they (with the OCs direction) may just resort to the courts to get the full amount. I would check out the status of the statute of limitations on the debt before proceeding. It is wise, as part of your decision-making, to know if you have an SOL defense should legal action come about. PFD and settlement offers involve more than just waiting them out.

[idonthaveaname]

Originally Posted by Lian

Are you also asking for CR deletion in addition to settlement for less than the full amount? If so, which is more important to you, getting CR deletion to improve your score, or settlement at a low amount to save you $$? If PFD was part of your offer, you might want to consider dropping that condition.

Regardless, remember that the decision-making is also going on at their end.

If they become convinced that you are unwilling to pay what they want, they (with the OCs direction) may just resort to the courts to get the full amount. I would check out the status of the statute of limitations on the debt before proceeding. It is wise, as part of your decision-making, to know if you have an SOL defense should legal action come about. PFD and settlement offers involve more than just waiting them out.

Well these are small enough amounts that it will not go to any court, so I'm not worried about that. Also the collection is within the sol. I'm just wondering generally what else could I do, besides getting right of the PFD. This company who does not own the debt claims the lowest amount they could possibly go is 65% of the total debt. In your experience how low do collection companies who do not own the debt go?

[Lian]

I personally would not just presume that they will not initiate legal action. The fact that they are not willing to settle for a small amount indicates they consider the additional $$ worth some effort. While others may have obtained settlement for a lesser percentage, your creditor/debt collector has apparently drawn a line in the sand, so experiences of others dont appear to be very relevant.

They usually bring multiple legal actions against many consumers on one date, so their legal fees are often minimized. Just the filing of legal action is often enough to bring many consumers to settle just to avoid a judgment, and a trial is often unnecessary. You can take your chances, but if you are still within SOL and they refuse to settle for less than a certain amount, your decision is easy. Either meet their demands or take your chances that they wont attempt to collect the full amount through order of the court.

[idonthaveaname]

When does the sol of limitations run? Is it from the state i opened the account in, the one i live in now, or where the companies main headquarters is?> Also if they are out of the sol why would they even bother trying it, if the case could get thrown out so easily?

[Lian]

A debt collector bringing legal action relating to consumer debt must, under FDCPA 811, bring that action against the consumer either in the jurisdiction where the consumer signed the contract, or in which the consumer resides at the time of bringing the legal action. For practical reasons, that is almost always the current state of residence, but the debt collector has the option.

The governing statute of limitations in legal actions is that of the jurisdiction in which the action is brought. Judges apply the law of their state. Some state SOL statutes include specific provisions directed to prior residency in other jurisdictions, or periods of non-residency in your current jurisdiction. So you must carefully research your state SOL statute to make sure of the law that will be applied by the judge. It varies.

The same applies in the determination of the period of SOL, and its possible reset. It varies.

Why would they bring legal action on a debt outside of SOL? Primarily because the consumer/defendant must usually show up in court and assert and prove their SOL defense. While some SOL statutes prevent the bringing of legal action when the facts clearly identify that the SOL has expired, most SOL statutes dont prevent the bringing of legal action, and its expiration requires proof in court. If you dont show up, no SOL defense is presented, and summary judgment is obtained by the creditor. They hope you dont know the process and the law.