If anyone wants to get a low settlement, you will have to write to the creditor’s collection department. The collection agencies are in the business of make money and they hate giving anyone a settlement below 50%.The main thing is to remember, when a collection agency or creditor agrees to settle on a certain percentage or amount, make sure you get them to fax you the agreement before you hand over your money. Once you make the payment, have them fax you the release letter which should only take five business days at the most. After you receive the release letter; I would go into the credit bureau if you have one in your local area or fax them the release letter so your credit file can be updated. The debt settlement process is that simple.

The reason I am active on the site at the present time; Monty asked me if I could help him out till he gets the site upgrades completed. If you settled your debt the release letter should be in your hands within five business days if you requested to be faxed to you. If it's going to be sent by mail it can take up to a couple months. If a collection agency or creditor sends you an agreement to settle and you pay by the agreement date the creditor or collection agency is not going to come after you years down the line. I would make sure on the settlement letter and the release letter the account number is on there. I would also keep the release letters for years or forever if you can.

Hi Reg,

We have settled thousands of clients accounts and almost every offer to settle mentions "Without Prejudice" on the top of each letter. To date nobody has been sued or owed the difference.

Remember every settlement requires two things to make it binding on both sides.

1) an offer
2) acceptance of the offer

As long as you keep your offer and receipt for proof of payment you will be fine.

My understanding is - "Without Prejudice" just means it can't be submitted as evidence against that person in court.

If you need any futher clarification, you should discuss it with your laywer as I am not qualified to give legal advice.

Yes, we made the payment

average joe, u seem very active on these forums. I wish I had the time and brave enough to settle my own debts but I have acquired someone else's help and paying their fees but ofcourse this is business

Can you clear a doubt with me, I was told my that Release Letter can take time, even couple of months - how true is that?

( So what exactly is the reason for W/o Prejudice on a settlement letter - they agree to a payment, I make the payment )

If you get the settlement agreement in writing and faxed to you, they will not turn around and sue you years down the line. If you make the payment by the due date you agreed, you will be fine.

reggie2828,

Without Prejudice

A reservation made on a statement or an offer that it is not an admission or cannot otherwise be used against the issuing party in future dealings or litigation with any determinative legal effect.

Hi Richard, I took your recommendation ( /threadview/1971.html )

She has settled 2 debts for me till now and I wanted to confirm on 1 point with you

When the collection agency sends a offer letter like below

http://img6.imageshack.us/img6/2054/94627401.jpg

( I have removed personal info )

When it says "Without Prejudice", does that mean even after settling the debt and the letter stating that once the agreed amount is paid, it will be considered in full; they can still come after me

I read something about this here,

http://www.creditinfocenter.com/debt/CanCreditorSue4SettlementDifferences.shtml

It says the following, however its for US only

I negotiated a settlement with a creditor for less than I owed. The creditor is now suing me for the balance. Is this legal?

Yes! You need to read the following information carefully.

Some collection agencies will agree to settle with you for far less than you owe and then turn around and hire another collection agency to collect the difference. However, in many states this is illegal. Once a creditor deposits or cashes a full payment check, even if she strikes out the words payment in full or writes "I don't agree" on the check, she can't come after you for the balance. The states in which this law is enforced:

* Arkansas
* Colorado
* Connecticut
* Georgia
* Kansas
* Louisiana
* Maine
* Michigan
* Nebraska
* New Jersey
* North Carolina
* Oregon
* Pennsylvania
* Texas
* Utah
* Vermont
* Virginia
* Washington
* Wyoming

Some states have modified this rule. In the following states, if a creditor cashes a full payment check and explicitly retains his right to sue you by writing "under protest or without prejudice" with his endorsement, then he can come after you for the balance. But those exact words must be used. If he writes "without recourse," communicates with you separately, notifies you verbally or writes on the check that it is partial payment, it is not enough.

* Alabama
* Delaware
* Massachusetts
* Minnesota
* Missouri
* New Hampshire
* New York
* Ohio
* Rhode Island
* South Carolina
* South Dakota
* West Virginia
* Wisconsin
=========================

I am kind of worried about this - whats your opinion