Is this a good deal from a ca

[rich221976]

What is the name of your state? FL

Hello,

I received this letter from Performance Capital Management and also a contact as well. Does this appear to be on the up and up. I am not sure exactly of the date that i couldn't make payments to the orginal creditor. According to my credit report it was janurary of 2000 that i was 30 days late, and then in april was my 120 days. Plus during 2002 i was living in new york for about a year so that should off set my sol. Just looking to get opnions on this.

Here is the letter...

Dear Richard ...

As you have been previously advised, Performance Capital Management purchased the above referenced account. We believe we have a great program to help you resolve this debt. PCM is offering to allow you to make payments of $ 16.12 over 48 months without any interest charges. This adds up to $ 773.76 in payments. This is a reduction of $ 888.41 on your current balance. In Addition, we will update our tradeline, if any, to the major credit reporting agencies. Please do not ignore this great opportunity to resolve this debt.

Never recieved pervious correspondence from us? Please read carefully! Unless you notify us within 30 days after receiving this notice that you dispute the validity of the debt or any portion thereof, we will assume this debt is vaild. if you notify this office in writing within 30 days from receiving this notice, we will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgement or verification. If you request in writing within 30 days after receiving this notice, we will provide you with the name and address of the original creditor, if different from the current creditor. This offer does not affect these rights.

In order to take advantage of this program please review, sign and return the enclosed contract along with your first payment of $ 16.12.

If you have questions regarding this special offer, please do not hesitate to call me at the number listed below.

Sincerely, Dan Stefani

Here is the contract

Name and account information

As consideration for resolving the above referenced account, Performance Capital Management, LLC (PCM) is prepared to re-wirte the terms of the above account. PCM is willing to accept $ 16.12 as a down payment and allow the remaining balance of $ 757.64 to be paid in 47 monthly installments of $ 16.12 with zero interest. The down payment of $ 16.12 is due on or before September 30, 2004. PCM shall provide you with a monthly curtesy statements setting out the monthly payment for your convenience. Payments under this contract shall not be conditioned on receipt of a courtesy statement. Payments shall continue on the 15th day of the month following the signing of this agreement. The tradeline reported by PCM, if any, on hte re-written account will be updated accordingly to the major credit reporting agencies.

Should the undersigned default on the terms herein the total remaining amount of the re-written balance only shall become immediately due and payable. An account shall be in default if any one payment is more than 30 days past due.

Should suit become necessary to enforce the terms of this agreement, PCM shall be entitled to any and all reason able attorney fees and cost as allowed by law.

I have read, understand and agree to the terms and conditions set forth herein, I understand that this agreement is a resolution of an existing debt and not an application for credit or refinanceing of an existing debt.

Places to sign and add phone number....

[Ladynred]

FOUR YEARS ??? Do you really want to be paying PCM for 4 years ?? What's your financial status ? Can you pay more that that ?? Can you pay 1/2 of the debt in full ?? It also means you get stuck with SEVEN more years of this bad credit item on your reports because this contract of theirs will probably be re-written as a new debt - and a new collection at that !

You'd probably be better off offering them a 40% settlement if you can do it.

As for the SOL, while JetX will scream 'foul' at me and say the SOL was tolled while you were gone - THEY don't know that - I'd slap them with a C&D letter and tell 'em the debt is time-barred anyway -- what the hell can it hurt ?? IF they sue you, you can try the same thing - and make THEM prove its NOT applicable.

[Tayla]

I agree 100% with ladyNred's response! Accurate and precise ideas to implement. May I add that *IF* your going to even go for settlement that it be agreed that a Deletion to the credit bureaus (for payment in full) be placed on the agreement. No sense in paying if you dont benefit as well. I did read the letter that was written above and thats one thing I didnt notice them agreeing to. Go for the delete so it doesnt hurt your credit (if possible). Technically speaking the Collector doesnt HAVE to report this collection and does have the power to agree to keep it off your report . Get everything in writing Before even trying to pay on this. (Personally Id go the C& D route for reasons that Lady spoke of) . Let us know how you make out on this!

[rich221976]

I wish i would have kept better records of everything. From going off of what my credit report says i was 30 days late on the OC back in Janurary 2000. That is being stated on both Equifax, and Experian. Would it hurt if i sent a valadation on them?

Richard

[cmorris]

CRA's verify, not validate.

[JETX]

Originally Posted by rich221976

We believe we have a great program to help you resolve this debt. PCM is offering to allow you to make payments of $ 16.12 over 48 months without any interest charges. This adds up to $ 773.76 in payments. This is a reduction of $ 888.41 on your current balance. In Addition, we will update our tradeline, if any, to the major credit reporting agencies. Please do not ignore this great opportunity to resolve this debt.

First, that is 'legal-speak' and doesn't CLEARLY say that the deal they offer will be in full and final settlement of ALL claims on this debt. I wouldn't sign it until such time as that is CLEARLY stated.

Second, have you had them 'validate' the debt, including PROVING that they are the owners?? If not, I would do that.... with the side benefit of getting FACTS on the debt dates towards considering the SOL issue and possible expiration.

Third, as correctly noted by Ladynred.... the SOL may have frozen when you left the state. And I do agree with her that you should consider that fact when evaluating the overall viability of this debt. The one issue that LIR and I disagree on is when 'advisers' make statements of fact ("The SOL is dead!! Tell them to shove it!!") when the SOL may in fact still be valid due to the 'freeze'... and the debt is thereby still valid. They then go into court or file their answer thinking that they are 'scott-free', only to get bit in the ass when reality comes forward!!!