How Do I Make A Settlement On A Debt?

[boosami]

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?

Just tell them you don't have a checking account.

[tripods68]

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."

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.

[disneysteve]

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.

[beta decay]

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."

[beta decay]

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.)

[tripods68]

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".

[red92s]

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.

This sounds like a darn good plan.

[disneysteve]

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.

[beta decay]

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.