Ok, how's this for a settlement letter?

(Collection agency's name)

Re: Collection Account for Original Creditor: XXX
Amount: $1,732.00

Dear sir or madam:

Your company is reporting the above referenced account on my credit report as a collection account. I have disputed this item with the credit reporting agency and they reported you confirmed the account as valid.

Unfortunately, I am unable to pay you the amount I owe in full due to having recently escaped a situation of domestic violence with an alcoholic spouse.

However, in a good faith effort to resolve the matter amicably, I can raise $850.00 and would like to offer you this sum on the strict understanding that it is in full and final settlement of my debt and that neither you nor any associated company will take any further action to pursue this debt in any way whatsoever and that I will be released from any liability.
In addition, I would request that, if accepted, you contact both Equifax Canada and Transunion of Canada to amend any entry relating to the above account as "satisfied" in full.

I hope you will consider this to be fair and responsible settlement and on receipt of your signed acceptance, I will make arrangements for payment within the next 14 days.
Yours sincerely,

Debt validation was a US approach to getting rid of debt... and has been proven pretty ineffective in the states overall... the FTC has slammed, fined and shut down several companies that tried this angle to consumer debt relief.

IMO Writing letters to dispute/validate the debt is a colossal waste of time and paper; settlement is the best remedy if you want it paid and to drop off your credit rating. If its just one debt for such a small amount; you can do it with some persistence.

Hi Richard,
Thanks for your response.

What about writing them a dispute and validation letter? Would that help anything?

Pay for deletion doesn’t exist in Canada, you will get different opinions depending on who you ask but we have found it’s a pipedream in Canada.

Yes you can negotiate for less then you owe, if you decide to do it yourself make sure you get the offer to pay the settlement in writing and be sure to keep your receipt and pay by the due date when you do.

Have your initial talks on the phone but always get a written offer to pay less then you owe.

FYI $500 or 25% of the balance is possible but the original creditor will need to review the offer. The less you offer to pay the more difficult it is to get approved.

It will take some time and can be tough, but if its just one debt for such a small amount, just stick with it and it can be done. Use the search feature on the site and you will find tons of resources, be prepared and you will do fine.

Hello,

This is my first post on this board.

I have a few questions with regards to collection agencies. Subsequent to my separation with my husband, I obtained my credit report from Transunion and started paying off debts I owed.

There is a debt that appears in the Collections section of my report that was originally a debt to Telus, dating back in 2007, for $1,732.00. I know that the original amount of the bill to Telus wasn't that much but with interest charges, it grew. It appears first with an agency by the name of CBV Collections Services, but the account is marked as closed, probably because they weren't able to obtain anything from me (I was umeployed and preggo at the time). Then the same debt appears again under the name CBCC, as $1,970.00

My question is as follows:
-Is it possible to negotiate with this agency for a "pay for deletion"? I have researched online and have discovered that this option exists, but I'm uncertain if it's done in Canada.
- Also, should I attempt to negotiate for a lower amount (as in 500$)?

- Finally, should I call CBCC to negotiate with them or should I get things done in writing?

Thanks for any comments/input!