Settle with CA (debt purchase)

[CX3265]

What is the name of your state? Texas

I recieved a call from a collection agency today and talked to them. I really want to get this thing taken care of. The original debt was to Providian for about $2800 and the CA purchased the debt back in November. When I talked to them today they told me I owed them $3250 because of interest. They offered to settle for $2275 if I could give them (started out at $500 at the beginning of the conversation and was down to $20 to $30 by the end of the conversation) by the end of the week. They tried to get a post-dated check from me and I informed them I did not have a checking account. They tried to talk me into getting account information from someone else (a friend, family member, etc..). I told them that this was not morally correct and if I sell my vehicle I can get about $2000 for them but would not be able to put up any money up front but possibly not have the money until after the 31st. They said if I could not give them any money by the end of the week, I would have to pay the full amount of $3250.

First of all, can the CA who purchased the debt charge interest and would I have to pay more than the original debt? A credit report I pulled showed that they actually purchased the debt in April of last year (I think).

They wanted me to provide them with a fax number so they could fax over the agreement, but I told them I did not have a fax number available.

What are my options? I want to get this thing taken care of ASAP.

Thanks.

 

[charliegussy]

Going throught the same thing

We seem to have a bit in common, I have going through the same thing except with medical bills. I to have posted for some advice. Going through this helped me learn a bit maybe I can ease some pain. If they offered you a settlement for less thats better than what I am going through. I tried to settle like that and they would not take it. If you want to get them out of your hair I would try like hell to get that settlement amount. Its less than what ya owed before. I have learned they can not make you sell you car if you need it to go to work to pay the debt off. If you can not work you can not pay the debt so tell them that. Yes its legal to buy you old debt. Its like legal loan sharking to me. Its like home mortgage. You borrow from the local bank and then they sell it. Credit cards are the worse it seems when those go to court you have to pay them. They always look at those like you used it to live it up. I am not sayin you did its just they way they look at it. Been down that road. Now I just have medical. They are blood suckers to. Charge you interst on it to. They act like they care when you half dead and when you can not pay the left over from the insurance they try to sue you. I had over 5 grand left over after my operation and now they are after me like a credit card. Anyhow look into paying that settlement off even if ya have to borrow it. Those are rare if you get one. Good luck

 

[Debt Guy]

The agreement you signed governs default. So, yes, the original creditor has the right to sell the loan. And, yes, the agreement provides that interest can continue to accrue until it is paid.

The amount of interest that can be charged is a function of the agreement and the laws of your state. The amount of interest the collection agency has added may or may not be correct.

Of course they are going to tell you dire things will happen if you don't do something today. That is almost always not true. They have only recently purchased the debt and just now contacted you, right? Then they are still "working" the deal.

In my opinion, you are agreeing to too much. If you don't feel comfortable negotiating this yourself, then either hire an attorney or hire a settlement company to help. Either will charge you for their services but should do a better job than you can do by yourself. Your statements are telling me you feel very uncomfortable and unsure right now.

Don't go sell your car. Right now, just be cool. If they call, say "I can't talk to you right now" and hang up. Do not give in to your urge to be polite and do not engage them in conversation. Don't be pressured into an agreement until you know what you want to do and know that you can deliver on what you agree to.

Once you know what you want, then make an offer and negotiate your position.

PM me if you want to discuss specifics.