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| Debt Anything to do with debt including debt reduction, debt concerns, debt consolidation and how to get out of debt |
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04-11-2009, 12:49 AM
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How Do I Make A Settlement On A Debt?
My wife owes $4,000 on her Capital One card, and it's been about a year since anything has been paid on it. It's being handled by NCO Financial. They agreed to settle the debt for 50%. They told me I must give them my checking account information. I told them I don't want to pay by check. I don't want my account information to be available to them for fear that they take the entire amount. They said I could pay by Western Union, but only if I also gave my checking account information. I refused. They said the 50% settlement is a first come first serve thing, and they will give it to the next person if I don't agree to give my checking account information. That's rediculous. Someone would have to be very stupid to believe that.
So, I made no headway. I'm currently unable to settle without giving them the opportunity to charge the entire amount to my checking account. I tried calling Capital One directly, but they said I have to deal with NCO. 
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04-11-2009, 07:32 AM
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What you could do is open a new account. Deposit just enough to cover their bill and give them that info. As soon as they draft the payment, close the account.
Absolutely do not give them access to your regular account.
__________________
Steve * Despite the high cost of living, it remains very popular. * Why should I pay for my daughter's education when she already knows everything? * There are no shortcuts to anywhere worth going.
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04-11-2009, 08:26 AM
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04-11-2009, 08:38 AM
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Steve is right.
NEVER give them your checking account number no matter what. They will TRICK you! ONce they get your account number, they will try to recover the remaining 50% owed as conduit--forcing your account to draw "negative" even if the account was closed long ago. ACH is very hard to eliminate since it has to be closed by the originator/initiator, which in this case the collection agency who initiated it. In the end, the collection agency get their full amount owed to them drawing your account negative. You now owed the bank the remaining 50% plus NSF charges which you have to pay. If you don't, the bank reports you to "check-system".
__________________
Carpe Diem
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04-11-2009, 04:50 PM
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Opening a new account, as stated, would allow them access to the full amount. I would have to pay the bank back the remaining 50%. I'm only restating this because it's something I've gone through. 10 years ago I canceled AOL, and went right into the military. I didn't look at my bank account for 9 months, and when I got home I found a stack of letters from the bank saying my account was negative and I owed the bank the money that AOL took illegally.
(Since then AOL had a class action suit, and they settled. I was not included because they did it to me before a certain date, so I just lost out.)
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04-11-2009, 04:54 PM
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So, it seems there is no way to settle without a settlement lawyer. They wouldn't bother telling a lawyer that the 50% settlement will be given to the next costumer, or that my bank account information is needed to lock in payment even when I'm using Western Union. They wouldn't bother trying to trick the lawyer, and they would get on with things.
On the other hand, I could mail them a letter saying "I'll settle under these terms...and if you don't agree before such and such a date then this is notice to cease communication."
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04-11-2009, 05:03 PM
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I would definitely speak to a lawyer. I don't see how they can not accept any form of payment but a direct draw from your account. Why can't you just mail them a money order? If they won't allow that, get a lawyer.
__________________
Steve * Despite the high cost of living, it remains very popular. * Why should I pay for my daughter's education when she already knows everything? * There are no shortcuts to anywhere worth going.
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04-12-2009, 10:08 AM
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I don't think you really need spend time and money with a lawyer. I had a similar situation where I paid half of what its owed as settlement. My bank required it to be in writing from the debt collection agency to get my car loan approved. I then forwarded a copy to each credit agency that I paid my debt. In fact, it was my bank that transferred the money to the debt collection in order to get that letter. That's what you need; something in writing that "settle the debt for agreed amount." The letter has to come from the collection agency with their company letterhead. Work with your bank if you have too. Then fax a copy to each credit agency to update your credit history.
__________________
Carpe Diem
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04-13-2009, 08:10 AM
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05-05-2009, 10:21 PM
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I actually dealt with NCO before on the same situation. Ask them to fax you a written settlement agreement and written ACH agreement form with the settlement amount before you will give them the account number. If they balk tell them your next call is to the state attorney generals office in the state they are located in to file a complain for deceptive business practices and violating collections law.
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05-06-2009, 10:48 PM
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Hi,
I think What you possibly will perform is open a new account. Deposit presently sufficient in the direction of cover their bill and provide them so as to info. As soon as they summary the payment, secure the account.
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05-11-2009, 07:23 AM
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Get them to put thier offer in writing and pay be cashier's check. that's the only way you should settle.
Question - if you guys have the full amount in your checking, why are you not paying your debt in full?
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05-12-2009, 07:13 PM
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i wish i would have seen this before we went into settlement with an account, but i did receive a letter from citi with the terms, but i am thinking once the last installment is paid i should cancel the account and open a new one just to be safe.
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05-14-2009, 07:34 AM
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I'm confused... if you have the money... why don't you honor your debt?
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05-15-2009, 12:03 AM
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 Borrowing money from a friend to pay your bills can not actually help,rather you're just creating another gateway to financial crisis. Worse may come just buy a pain reliever if you do! Well, here's an ADVIL the fastest way to take your headaches gone... Seriously, whenever you have money pay your bills little by little but of course give a little consideration to yourself, leave a little amount on your pocket for your food allowance... Disregard the things you want for the meantime and breathe... breathe... sit down, be cool, so are you okay now?  Watch out!!! There are lot of beautiful dresses, computer gadgets, new style jeans at a very small price, in the mall, and hey! Hey! for credit cardholders they are giving 25% discount on each item!!! Come on let's buy!!! Wanna crave for that?! Hey! I'm just teasing you...Be Aware Temptation is everywhere!!! hehehe....
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05-15-2009, 12:56 PM
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Your wife spent the whole $4,000 right? She signed and agreed to pay it back?? Why do you think that it is your "right" to demand to pay only 1/2, and not a penny more?
I would pay off my debts. I am a grown up, and if I put something onto a card, I know I have to pay off said debt. It is called responsibility.
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05-15-2009, 01:12 PM
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People should feel bad about settling debts the moment the companies start charging them interest on the possibility that they might default and settle.
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05-15-2009, 02:05 PM
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Say you borrow $3k @ 29.9% and never pay any of it back for a year. If finance charges and late/missed payment fees accrue that entire time, your $3k borrowed has turned into nearly $4,500 owed. Throw an additional over-limit fee each month and now we're at almost $5k.
I wonder how much of OP's $4k is made up of fees and interest tacked on by the creditor? The creditor may not even be taking a loss by settling at 50%...
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05-15-2009, 02:33 PM
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I understand that the original amount may have only been $3,000 in purchases, or some other amount. I still say that when you sign on the dotted line, you are agreeing to pay. She hasn't made payments in a year - of course they add interest. If you have a mortgage, can you just decide not to pay the interest - or not to pay for a year, and then settle the mortgage for 1/2 (and still get to keep the house)? If you don't agree with paying back your debts, then don't use a credit card. Yes, credit card companies charge high interest (this is why I pay mine in full every month - it costs me nothing), but that is what you must deal with if you are someone who wants to have things now and not pay for them until later (or not at all in this case).
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05-21-2009, 11:54 AM
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Absolutely. Somewhere in the fine print it says, once they obtain that information you are in for a ride.
A lesson for all.
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