• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Settlement Offer not exactly a settlement

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

thebluedahlia

Junior Member
What is the name of your state? TN

I am in the midst of the ongoing trial of paying off/settling a debt. I have posted about it a few times before and have gotten great advice (thank you DC!). It has taken me a while to get anything going as I could not get anyone who understood what I was saying on the phone. That problem now solved, here's the new one:
The debt is Sears Mastercard, originally $2400, now $4071 due to interest in collections. The lady today told me that this was placed with her agency, Credit Control, to be the final stage before going to my county court system (fair enough). She said that she was working on behalf of Resurgent (first time I have heard of this) and that we were on a tight deadline as it was so delinquent that they only had 48 hours. The settlement offer is $3262.71/40% down ($1304)/remaining balance paid in six monthly payments (around $362 per month). I asked if they could settle for a lower amount if I paid today, say around $1200. She said that they could not that the lowest Sears would settle for is 80% and even at that she had to submit the settlement terms in writing for their approval. Here's the catch-I have talked with Sears a few times in the past year and they claim that they no longer own this debt nor do they know anything about it! If that is true, then why would this company need Sears' "agreement" to the settlement terms?? Sounded a little fishy to me. I was under the impression that they might jump at the chance to get money and would settle for what I could pay today, which would be about $1200-$1500.

The problem with her proposed settlement plan is that I was able to secure a loan for the amount I have; I do not think I could conceivably take on an additional $362 a month in payments in addition to this new loan pymt and my other bills. Should she be able to span that remaining balance over a longer period of time, then I might be a little more comfortable agreeing to it.
Your suggestions are greatly appreciated! :)What is the name of your state?
 


TigerD

Senior Member
What is the name of your state? TN

I am in the midst of the ongoing trial of paying off/settling a debt. I have posted about it a few times before and have gotten great advice (thank you DC!). It has taken me a while to get anything going as I could not get anyone who understood what I was saying on the phone.
Happy to help.

That problem now solved, here's the new one:
The debt is Sears Mastercard, originally $2400, now $4071 due to interest in collections. The lady today told me that this was placed with her agency, Credit Control, to be the final stage before going to my county court system (fair enough).
FDCPA violation #1.
§ 807. False or misleading representations [15 USC 1692e]
(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.
She said that she was working on behalf of Resurgent (first time I have heard of this) and that we were on a tight deadline as it was so delinquent that they only had 48 hours. The settlement offer is $3262.71/40% down ($1304)/remaining balance paid in six monthly payments (around $362 per month). I asked if they could settle for a lower amount if I paid today, say around $1200. She said that they could not that the lowest Sears would settle for is 80% and even at that she had to submit the settlement terms in writing for their approval.
FDCPA violation #2.
§ 805. Communication in connection with debt collection [15 USC 1692c]
(b) COMMUNICATION WITH THIRD PARTIES. Except as provided in section 804, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.
#######
If the debt was sold, submitting or threatening to submit a settlement to a third party is a violation.
Here's the catch-I have talked with Sears a few times in the past year and they claim that they no longer own this debt nor do they know anything about it! If that is true, then why would this company need Sears' "agreement" to the settlement terms?? Sounded a little fishy to me. I was under the impression that they might jump at the chance to get money and would settle for what I could pay today, which would be about $1200-$1500.

The problem with her proposed settlement plan is that I was able to secure a loan for the amount I have; I do not think I could conceivably take on an additional $362 a month in payments in addition to this new loan pymt and my other bills. Should she be able to span that remaining balance over a longer period of time, then I might be a little more comfortable agreeing to it.
Your suggestions are greatly appreciated! :)What is the name of your state?
Call back ask to speak with a supervisor. State quite clearly that you want to settle the acount or make an arrange that you can fulfill. Then advise the supervisor that the collector you talked to earlier mislead you about the status of the debt resulting in your lack of trust. You will make arrangements with the supervisor only. Then refer back to the negotiating points I posted before.

DC
 

RuGa

Member
Sleazy collection practices

It sounds as if Sears has sold off the debt and the 3rd part company which bought it is now using "hard-sell" tactics on you.
These companies hire employees who usually earn a percentage of what they collect form the debtor (so of course they always go as high as possible).
I agree with the advice given to you so far but would add this:
Call the company, ask for the supervisor. Ask what the best terms he/she can provide are and please mail it to you (as then you have it in writing). Then reply in writing (so as to keep a paper trail) as to whether those terms are acceptable and/or counter their offer with one of you own.
Remember also that when a company sells off debt, they sometime only get paid 20% of the value, so this leaves you room to negotiate with the collection agency which bought it.
As long as you do this and by no means rely on the telephone (as there are no real means of verifying what was said by either party) you are showing good faith and I don't see how they could force it into court.
Good Luck!!
 

TigerD

Senior Member
Call the company, ask for the supervisor. Ask what the best terms he/she can provide are and please mail it to you (as then you have it in writing). Then reply in writing (so as to keep a paper trail) as to whether those terms are acceptable and/or counter their offer with one of you own.
No mail. If the debtor can't get a fax -- they get no settlement. Settlements happen with very short time windows for consumer debt.

DC
 

thebluedahlia

Junior Member
Thanks for the advice....I was already thinking that I would call back tomorrow like I told her I would and but ask again about a smaller settlement or to speak to her supervisor. I was not aware of the fax issue so that is good to know. When she asked me what other settlement I had in mind and I replied around $1200 she said that that would make a lot of happy people but that they never went that low, that the reduction of 20% was pretty standard. I totally understand, but also cannot meet the terms she presented.
More info tomorrow!
 
I need to protest a few things here...

No mail? What gives? If a junk debt buyer or collection agency offers a "deal" of any kind, even over the phone - get it in writing!

Why? I've read a ton of posts (mostly on other consumer credit sites) where consumers get burned over these supposed phone deals. If you don't get the deal in writing, it never happened. 99 times out of 100 you get burned.

Next, the Resurgent/LVNV group has one of THE worst reputations in dealing with consumers. They buy debts and then hire the kind of colleciton agency that has a back log of complaints filed against them at some of our most popular government agencies.

I am one of those consumers hounded by Resurgent/LVNV. I've done my research.

If the debt is yours, then by all means consider paying it but consider:

1. Keep things in writing as it protects BOTH parties and keeps BOTH parties honest.
2. If you do call, record the conversations for same reasons as #1. If you live in a 2-party state, you have to tell them you are recording. Don't be bullied on the phone, and if you find you can't handle it -hang up!
3. Debt was originally $2,400 and now it's almost twice that? Dispute the total and send them in writing a demand for validation. There is enough case law to support that the colleciton agency or junk debt buyer needs to supply more then just the name and address of the original creditor. Specifically, how did they come to that total. Yes interest can still pile up, but almost doubling the debt? Give me a break..

Good luck, don't get railroaded. Good advice on the FDCPA violations, but the rest....suspect at best.

TiredOfAbuse

An afterthought:

If the debtor can't get a fax -- they get no settlement.
Wrong! In paying a past debt of mine that went to a debt collector, they chose to work with me through the US Postal Service!! I worked out a deal and got it in writing. This is a debt I paid to a collections agency IN FULL. Each agency is different, and most break the law. Best advice I can give you, take the words of a debt collector with a grain of salt. Find out your rights, and read up on your state and federal consumer protection laws. No, I'm not a dead beat or a professional debtor. I am a consumer that knows his rights.

Above all, if you are confused by this stuff and can do so, talk to an attorney!
 
Last edited:

thebluedahlia

Junior Member
I need to protest a few things here...

No mail? What gives? If a junk debt buyer or collection agency offers a "deal" of any kind, even over the phone - get it in writing!

Why? I've read a ton of posts (mostly on other consumer credit sites) where consumers get burned over these supposed phone deals. If you don't get the deal in writing, it never happened. 99 times out of 100 you get burned.

Next, the Resurgent/LVNV group has one of THE worst reputations in dealing with consumers. They buy debts and then hire the kind of colleciton agency that has a back log of complaints filed against them at some of our most popular government agencies. ~~So LVNV and Resurgent are one and the same?? That would make sense as I already knew that the prior, sleazy, break-the-rules CA was National Enterprise Systems who is also owned by LVNV. I did not/do not trust NES b/c that is who I first began dealing with nearly two years ago who agreed on bi-weekly post-dated payments only to try to run them through WEEKLY for THREE TIMES the agreed upon amount! When I called, I was told that there was nothing I could do that they already had my banking info and I had to let them....what really happened is that they let me credit union make some money via NSF charges and they (and me) got nothing. That was in the very beginning.~~

I am one of those consumers hounded by Resurgent/LVNV. I've done my research.

If the debt is yours, then by all means consider paying it but consider:

1. Keep things in writing as it protects BOTH parties and keeps BOTH parties honest.
2. If you do call, record the conversations for same reasons as #1. If you live in a 2-party state, you have to tell them you are recording. Don't be bullied on the phone, and if you find you can't handle it -hang up!
3. Debt was originally $2,400 and now it's almost twice that? Dispute the total and send them in writing a demand for validation. There is enough case law to support that the colleciton agency or junk debt buyer needs to supply more then just the name and address of the original creditor. Specifically, how did they come to that total. Yes interest can still pile up, but almost doubling the debt? Give me a break..

Good luck, don't get railroaded. Good advice on the FDCPA violations, but the rest....suspect at best.

TiredOfAbuse

An afterthought:



Wrong! In paying a past debt of mine that went to a debt collector, they chose to work with me through the US Postal Service!! I worked out a deal and got it in writing. This is a debt I paid to a collections agency IN FULL. Each agency is different, and most break the law. Best advice I can give you, take the words of a debt collector with a grain of salt. Find out your rights, and read up on your state and federal consumer protection laws. No, I'm not a dead beat or a professional debtor. I am a consumer that knows his rights.

Above all, if you are confused by this stuff and can do so, talk to an attorney!
~~Thank you for your advice.....I was not able to speak to my designated person today so I will have to let you know tomorrow what has come of it. And yes, the debt is very much mine and I have no problem paying what is mine yet cannot pay when given insane terms.
 
~~So LVNV and Resurgent are one and the same?? That would make sense as I already knew that the prior, sleazy, break-the-rules CA was National Enterprise Systems who is also owned by LVNV. I did not/do not trust NES b/c that is who I first began dealing with nearly two years ago who agreed on bi-weekly post-dated payments only to try to run them through WEEKLY for THREE TIMES the agreed upon amount! When I called, I was told that there was nothing I could do that they already had my banking info and I had to let them....what really happened is that they let me credit union make some money via NSF charges and they (and me) got nothing. That was in the very beginning.~~
The Resurgent group has a lot of companies under their umbrella. I am not even sure of how many, but it's my understanding there are quite a few.

Each CA that has been hired by Resurgent/LVNV to collect on my debt has broken federal and state laws. If they ever do hire a reputable company and works with me, I'll get this last debt of mine paid. But morally I will not work with a company that violates the law when dealing with me.

I am starting to think the one CA I did work with and paid in full was a fluke. It really does appear the whole industry is corrupt, but that is just from my perspective. I'd like to hear how this goes for you!

Again good luck!

TiredOfAbuse
 

TigerD

Senior Member
Each CA that has been hired by Resurgent/LVNV to collect on my debt has broken federal and state laws. If they ever do hire a reputable company and works with me, I'll get this last debt of mine paid. But morally I will not work with a company that violates the law when dealing with me.
It's your debt they don't have to work with you -- you have to work with them. Get off your high horse and just pay your bills.

DC
 
It's your debt they don't have to work with you -- you have to work with them. Get off your high horse and just pay your bills.

DC
Thank you for your input DC in addressing my debt. It is my debt, they do have to work with me AND stop breaking the law. Debt collection involves the agent and the consumer. If both parties work together in a fair way then the issue can be resolved. It's not my fault they break the law. I'm sorry you see cooperation between both parties as the consumer being on a high horse.

I do not see how addressing my debt helps the OP.

TiredOfAbuse
 
Then stop bringing up your long history of refusing to pay your bills and answer the OP questions with something resembling accuracy and common sense for a change.

DC
I was posting to the OP as the OP and I have something in common. This helps break the ice with the poster, in a friendly manner and was used to assure the OP that the OP is not alone.

You decided to post about the debt I had mentioned. My saying "I do not see how addressing my debt helps the OP." was directed at your abusive post about my debt.

If you still do not understand, then let me rephrase: I do not see how YOU addressing my debt helps the OP".

Now do you understand, or should I draw a picture?

The day you can post and debate my advice is a day I will mark my calander. Until then, just keep up the person attacks - reminds me what CA phone calls are like.

TiredOfAbuse
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top