A friend of mine settled his debt with Chase just following the regular DIY tips. The problem was that he tried the exact same thing with two other banks and they simply refused to talk about a settlement.

From what I've heard and read, if you follow the strategies and the creditor/collector is willing to consider a settlement then you should be fine. There have been some changes to the laws about debt settlements and the industry is closely watched by the government http://debtsettlement.com/_blog/Debt_Articles/post/exceptions-in-the-amended-debt-settlement-laws/.

As I mentioned in my previous post, I've done a settlement before so I'm aware of the procedure (getting the settlement in writing etc).

I was just looking to hear if anybody out there ran into any problems where the collection agency did not honor the settlement letter after the fact... or applied the funds to the balance of the account... basically... anybody who followed ALL the right steps, but had a negative outcome.
Thanks

Surely the WU comment was in jest.. We both know if the C/A request's one's funds be transferred via WU, they should then be told to go and take a swim with the sharks. Certified Cheque or Money Order with a clear notation of what the funds are for is the only way to go.

Fortunately, I know you we're just kidding around. But, in case this chap doesn't... ;-)

If the offer states that funds MUST be sent by Western Union, DO NOT send them a cheque or do a bank transfer, otherwise the offer will be negated.

< the agency really didn't change my credit report...still shows derogatory but has a note on it that it's settled > ........ and they won't. The "collection account" will stay on your credit record until it is purged................6 years from the "date of last activity".

< I've been dealing with collection agencies for years now and I've talked to all kinds of agents.......bottom line, I don't trust them! >

I'm shocked to hear this statement. I always thought that they were the nicest, honest, trustworthy, "God-fearing" and sympathetic people always willing to listen to your "hard luck" stories and suggesting easy payment plans................only, of course whenever you have the money, even if it is just a token payment. This comes as a total revelation to me and in my wildest dreams, I could not have imagined it. This information is really good to know.

I might suggest that after you negotiate a settlement offer with those "buzzards", that you request that they send you the agreed settlement offer in writing over the signature of a person who has authority to sign on behalf of the collection agency. Make sure that you do exactly as they request, otherwise the offer is NULL AND VOID. If the offer states that funds MUST be sent by Western Union, DO NOT send them a cheque or do a bank transfer, otherwise the offer will be negated. Be sure to also request a Release Letter after they have received the funds. After you receive this letter, take a copy of it and forward it to the credit bureaus so that they can show this account as being paid. The collection agencies are supposed to do this but they have been known to overlook this part of the arrangement.

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Educating one Consumer at a time

All my debts are stat barred.. but having a hard time getting collection agencies to do a below parameter settlement even though I well qualify for it.

I've gotten one collection agency to settle one debt..I was nervous as hell but it worked out somewhat ok (the agency didn't really change my credit report.. still shows deragatory but has a note on it that it's settled) and now i'm working with another and am pretty close to settling .. but the same feeling is creeping up on me again that I had the first time around.

I've been dealing with collection agencies for years now and I've talked to all kinds of agents... bottom line, I don't trust them!

I have this bad feeling that I send them the money and they don't follow through with their end of the bargain, or somehow the settlement letter they send is not valid for whatever random reason I may have overlooked.

Has anybody ever had this happen to them? Where they've done their due diligence and properly negotiated a settlement and it didn't work out for whatever reason?

Is it important to verify with the original creditor that the collection agency is authorized to act on their behalf?

Is a faxed version of a settlement letter sufficient enough? or should you demand they mail you one? Does the Settlement letter have to be signed? by a manager? anything particular to verify?