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  1. #1
    Join Date
    May 2008
    Posts
    4

    Default Is This Debt Settlement Letter Safe To Agree To?

    My question involves collection proceedings in the State of: FLORIDA

    Here is my settlement letter. I would like advice as to whether there are ANY possible problems with it.
    In a couple of days I will go for my appointment with a Bar referral Consumer Contract attorney (for $25).
    (I am also wondering if the transfer from credit card bank to collection agent/attorney, back to credit card company, back to (another) collection agency, etc… will cause an issue with using this letter)
    This is the first time I am seeing either of the names “ABC Recovery Service” or “XYZ Capital Services”
    I am going to try to call the bank of the original credit card account and see if they have XYZ or ABC listed as the entity that the debt was “transferred” to.
    .
    .
    .
    ABC Recovery Service
    Street Address
    City, State
    (123) 456-7891
    .
    May 8, 2008
    .
    My Name
    My Address
    City, State
    .
    Client: XYZ Capital Services, LP
    C/O: JKL Bank
    Original Account # 4321123443211234
    Original Balance: $24,600.00
    Current Balance: $26,100.00
    ABC Recovery Service Account # ________
    .
    SETTLEMENT OFFER
    .
    Dear My Name:
    .
    ABC Recovery Service, Inc. acting as agent for XYZ Capital Services, LP Will agree to the following terms for settlement of your account. We have received approval from our client to accept $7,956.55, via certified funds payable to ABC Recovery Services, Inc. to be sent for receipt no later than, May __, 2008, by 12 noon EST. You may choose one of the following methods of payment:
    .
    * If using Money Gram, you will use the blue Money Gram Express Payment form. The receive code is 3531. Please make payable to ABC Recovery Service, City, FL. You will need to include your reference number XXXXXXXXXXXXXX in the appropriate section on the form. Once you have made payment, if using Money Gram, you will need to call me back with the Reference Number that the Money Gram agent will give you so funds can be applied to your account.
    .
    * Wire funds to ABC Recovery Services, Inc. in care of BAY BANK, Main Street, Bradenton, FL 33613. Our account information is as follows: ABA Routing Number XXXXXXX Account Number XXXXXXX. Please fax a copy of the wire transaction to me at (123) 456-7890 once the transaction has been completed.
    .
    * You may send a money order or bank check overnight mail or Federal Express to us a ABC Recovery Service, 123 Broadway, Dunedin, FL 94609. Please call me with the tracking number for your express package.
    .
    * If using Western Union Quick Collect, you will need to use the blue and white form. Please make payable to ABC Recovery Service. You will need to include your reference number XXXXXXXX in the appropriate section on the Quick Collect form. The Code City for Western Union is ABCCBA. Code State is FL. Once you have made payment, if using a Western Union, you will need to call me with the Money Transfer Control Number so funds can be applied to your account.
    .
    If funds, described above are not received on the date specified on the above-mentioned account, the settlement agreement will become null and void. Upon successful completion of this agreement, there will be no further obligation on your part for this debt to either, ABC Recovery Service, or XYZ Capital Services, LP. Upon completion of this transacation, all collction activity will cease on this account and the client will be notified to update the settled status to the appropriate credit reporting agencies. Should you have any questions, feel free to contact us at the above mentioned telephone number.
    .
    Sincerely,
    .
    Rex Robinson
    Recovery Specialist
    ABC Recovery Service
    .
    Protocol Recovery Service is acting in the capacity of a “Debt Collector” in this matter. This communication is an attempt to collect a debt. Any information obtained will be used for that purpose.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    95,641

    Default Re: Is This Debt Settlement Letter Safe To Agree To?

    What problems are you worried about?

  3. #3
    Join Date
    May 2008
    Posts
    4

    Default Re: Is This Debt Settlement Letter Safe To Agree To?

    That there is no proof that this letter compels anyone to clear the debt from my record.

    I called the Bank that the credit card was originally issued through and the customer service person only would say "ABC Recovery Service is collecting on 'our behalf' for the JKL Bank account". They had nothing that they could fax to me. I have not received any letters from the bank that stated that ABC was authorized to settle the matter, zero the account, or remove the obligation.

    I have heard too many stories on the radio about people who pay on a debt without specific enough of a written obligation on behalf of the collection agency, where the agency agrees to the Reduced dollar amount....and find their payment been applied to interest and "costs" - they have to start all over again to clear the rest of the original debt.

    I showed the letter to an attorney today who said "agree to the following terms" is all about what I will do and nothing about what they will do.

    Also, there is no wording like on an offer that a previous company sent me:
    "as settlement in full of the above-referenced account"
    as opposed to ABC's more general-
    "settlement of your account".

    The other company's wording had
    "Upon receipt of cleared funds, (our service) and our client will consider this account settled with zero balance. We will issue a release letter stating this account is settled with no further obligation due".
    ABC says "We have received approval from our client to accept $_____, via certified funds payable to ABC Recovery Services", but the other collection company came right out and specifically said
    "Your JLK Bank account has been purchased by our client, XYZ Capital Services....Our client has authorized (us) to accept $_____ as settlement in full of the above-referenced account".

    ABC does not say what they do in obligation after they "accept $_____".

    Actually, the attorney suggested finding out if another working credit card of mine will guarantee it's use for a payment on this, and therefore guarantee the payment will go to zeroing the settlement. .....Find out first from my remaining credit card company, if I use my saved up money to prepay them and their account, then can I use the balance to pay ABC on behalf of their client or JKL Bank.

    I'm just worried about a wording technicality causing me to throw away all my hard-earned overtime, and tax rebate.

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,899

    Default Re: Is This Debt Settlement Letter Safe To Agree To?

    Quote Quoting debtdebt
    View Post
    That there is no proof that this letter compels anyone to clear the debt from my record.
    Creditors will rarely agree to do that. If that is your agreement, you do want it to be explicitly included in the document.

  5. #5
    Join Date
    May 2008
    Posts
    4

    Default Re: Is This Debt Settlement Letter Safe To Agree To?

    aaron - Sorry about the double posting.

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