A good deal?

I live in Tennessee. A credit company, Midland, has acquired a credit card default debt for $6200. When I talked to representative, he said they would accept 10-$75.00 payments and use that as a down payment. Then open a new loan for $5400 @12.9% interest over 60 months. He also said this would remove the 09 status at the credit bureau. Is this a usual practice for collection of a debt?
Also after further research, I found this company has violated 7 sections of the Fair Debt Collection Practice Act during attempts to collect a debt. While I do not dispute owing this money, I do feel this company should follow the law in collecting. Is there any recourse to make them change their practices? Thanks.

It's a terrible deal. I wouldn't take it. For one thing, I'm betting they're going to start the 12.9% interest from the day you start making the 10 $75 payments, so you'll have another $500 tacked onto the balance before you start the other loan plan. In addition, there's no guarantee that they'll even give you that new loan after you make the 10 payments.

How old is the debt? Knowing that will allows us to tell you how much to settle for at this point.

If it's more than 1-2 years old, I wouldn't settle for more than 50% of the balance.

[Ladynred]

File a complaint with the FTC, that's the only way the FTC will get notice of this company's bad practices and violations.

As for the 'deal', it sounds a little suspicious to me, but perhaps some of the senior members might have some input on it.

Thank you for your feedback. This debt is 2 years old. I told this rep to send me an agreement in writing. So, I'll check the actual terms when it is received. And I will also, file a complaint with the FTC. Again, thanks!

All they want is some sort of payment. Once you send them your money they will accept it, and laugh at you because you fell for their scam. They WILL NOT remove your "bad credit" from the record. Contracts mean nothing to these "people". Do yourself a favor and just forget about the debt. Take it on the chin. Save your money, and start the process of getting a fresh start.

Credit Card companies must follow the Federal Debt Collection Practice of 1993.

Go to [url]www.DueProcess.org[/url] for info on dealing with this collector. Actually all they want is for you to admit you owe the money, when they only gave you credit, not money, credit in their bank.

Read and understand Due Process web site. Write to [email]John@DueProcess.org[/email] for details about your case.

Carter4U

[Ladynred]

The Fair Debt Collection Practices Act (FDCPA) ONLY covers THIRD Party collectors, it does NOT have any affect on an ORIGINAL creditor. Since Tomcat is referring to a collector, in this case the FDCPA does apply. It would not if he were dealing directly with the credit card company.