Bad Debt in Pre-Law Status

[PMiller228]

What is the name of your state? Tennessee

In 2000, I stopped paying a credit card that had a balance of around $ 600. I won't go into why I stopped paying them other than I was having some financial problems. I should have called them, but I didn't.

Since then it has been turned over to collections and has been to a few different collection agencies. The amount has changed as well. Due to interest and fees the amount is now $ 1,600.

A few weeks ago I began receiving calls at home from a collector in the Washington, DC area that is a law firm. The name of the firm is Wolpoff and Abramson. The letter they sent me says they are attorneys in the practice of debt collection. About a week ago they began calling me at work! I called them and told them to stop calling me at work. They said okay. I then informed them that my financial advisor would be contacting them shortly to discuss settlement. My financial advisor is a friend is a CPA and has settled some of my other debts.

My financial advisor contacted the firm yesterday and spoke to the person in charge of my account. He told the collector that we could settle for $ 900. The collector said no and said the lowest they could take in settlement was $ 1,300 and that this amount was good for only 1 week. The collector also said he wanted to talk to me regarding this account.

I called the collector back yesterday and told him I could only settle for $ 900. He said $ 1,300 was as low as they could go. I was firm and said this is what I can pay. He then said my account would be given to one of their attorneys for review. My financial advisor and I both told the collector to make sure it is "on record" that we had made a settlement offer in the amount of $ 900.

At this point, I sure don't want a lawsuit, but I would like to keep the settlement under $ 1000. I was told that my account was in a "pre-law" status. What should I do? Are they just playing hardball and will come back and agree to my $ 900 offer, or will they persue it legally?

Please advise. Thank you!

[Ladynred]

"pre law", "pre-legal" .. all weasel words - and complete BULL - to scare you into paying them what THEY want, right now. Its getting to the end of the month, commssion/bonus crunch time for collectors - they turn the screws as hard as they can.

First of all, no VERBAL settlement offer will ever be accepted by the likes of Wolpoff. They play hardball and they are nasty, but they also LIE thru their teeth and violate the FDCPA with abandon. If you want to negotiate a settlement, DO IT IN WRITING only. A 5 year old debt is not worth the 80% they are demanding. They (or some junk debt buyer who hired them) paid mere pennies on the dollar for your old account - I wouldn't budge for anything over 50% !!

Unfortunately, you've all but admitted the debt. With a debt that old, you should have simply sent W&A a debt validation letter and make them PROVE that you owe anything, that the debt is, in fact, yours. You can still try this route, its your legal right. Have you gotten any letters from W&A since they first contacted you ?? If not, there's one violation of the FDCPA right there. They are required to send you written notice within 5 days of their first contact with you.

W&A are trolls and bullies and they think they are untouchable. Well - they're not and they are just as bad as most of the other rotten collectors out there.

You can find info on validation and sample letters at [url]www.creditinfocenter.com[/url]

[PMiller228]

Thank you for the reply.

If I send them a settlement letter, how should it be worded? And should it be to the attention of the collector in charge of our account or someone higher up?

I can't STAND these people. I don't see how they can stand themselves.

Thanks!

[Ladynred]

They're all brainwashed and very proud of themselves when they can squeeze money out of little old ladies and jobless people. They brag about how they threaten and abuse people. I've seen posts on boards frequented by collection agencies, they truly ARE a sickening bunch.

You can find sample settlement letters at creditinfocenter.com too.

[jamied66]

what boards are those?!? I'd love to get a sneak peek into the minds of these people to help deal with them a little better.

Thanks.

[PMiller228]

I don't think I can wait any longer. The stress of a potential lawsuit is a heavy burden on me. Even though I do not want to pay these jarheads more than a 50% settlement, the threat of going to court is stressful. So stressful that I don't think I can wait.

My financial advisor thinks they are going to pursue it legally. They would NOT budge on their $1,300 offer. I wanted $ 900, but I am not going to get it.

This is very stressful on me and my wife. If I felt confident that a settlement letter would be effective, I would do it, but I am afraid these guys mean business. I know they might be just trying to scare me, but they have the ability to pursue it legally and probably will do so.

I was trying to save $, but I should have done that a long time ago and just paid the darn credit card off. Looking back, I should have just borrowed the money to pay it off.

Oh well, all I can say is live and learn.

[Ladynred]

You do what ya gotta do, but I have to tell you that for a mere $1600, they are not THAT likely to sue you. The scum at W&A are big on arm-twisting and when you consider that this is the last week of the month and collectors are looking to make their quotas for bonuses, well, they're cranking up the intimidation to get YOUR cash.

I understand the stress, believe me, these peckerheads have sent me letters that might scare most people, but *I* will not give in to their initimidation and weasel words without a fight. I sent them a debt validation letter in December 2004, I've not heard a single thing from them since.

Good luck to you.

[PMiller228]

Well, I have calmed down some since my last post. I went ahead and mailed a settlement letter to these jokers. I again used the $900 figure that my financial advisor and I held firm to. I sent the letter return receipt requested. I wonder if they will take the offer, make a counter-offer or just flat-out turn it down.

Like I said in my previous post, I am scared and want this out of my life. I can't stand these people. I want to avoid going to court and I will pay them more if I have to in order to avoid that.

[jeffr]

I sent them a debt validation letter in December 2004, I've not heard a single thing from them since.

Oh, you'll hear from them (W&A), and I can guarantee it will be by lawsuit. Trust me, I know firsthand!

[Ladynred]

Maybe, maybe not. They have to come up with the PROOF that I asked for in my validation letter and if they don't do it before, but wait to sue me, then they are going to have to produce that proof in court. I have FEDERAL law on my side . I know they sue, but the pathetic amount of information they had in their demand letter was absolutely laughable. I'm not kidding when I say that I have NO idea which account they're after, there was NOTHING identifying the original debt except for the name of the original creditor. That in itself is NOT enough to prove I owe anybody anything, let alone the junk debt buyer who's behind them.

ladynred knows her chit even though shes a nobody. FOLLOW HER ADVICE
and youll come out ahead if you didnt****************************..and if 1 lawyer in the usofa wants to sue me go ahead**************..youll get a 65 dart plus my federal mine claim in colorado.

[Ladynred]

even though shes a nobody

That's too funny.....

[PMiller228]

jeffr,

Please tell me a little about your experience with W&A. I would like to know the events that led up to the lawsuit.

I hope that I can get this settled with these jokers. I want them OUT of my life !

PMiller