We just discussed how to negotiate debts successfully on our own, but that doesn’t close the deal…yet. Negotiating debt and paying the new agreement requires a settlement letter. In the wacky world of debt collection, debt buying, and credit reporting, paying off a debt you settle without having a documented agreement, is a mistake. And one you will regret later on if the credit card you thought was settled (other types of debt too) resurfaces in a way where a written agreement to accept less could show the account was resolved, instead of the headaches you may go through without one.
NOTE: This post is part of our Debt Settlement Guide. If you’ve missed any of the previous content, or would like to start at the beginning, please see the links at the bottom of this page.
Reaching the point where you have a verbal agreement to settle and pay off a debt for an amount you can afford is exciting, and a relief at the same time. You must be careful not to lose sight of what are still critical concerns before celebrating your success. This information will help you focus on crossing the debt settlement finish line with confidence – when your success is documented.
A Verbal Agreement is Not Enough
When you’re negotiating directly with creditors, your settlements are generally going to be reached verbally first. The verbal agreement will be for a set amount of money either paid all at once, or paid by making several installments over a set period of time, until the settlement agreement is met. It’s important that you understand the deal is not done until it is documented and fully funded, consistent with the terms and payment timelines laid out in a debt settlement letter.
Verbal communication with creditors and debt collectors are a necessary part of the debt negotiation process. How and when to communicate with creditors and debt collectors to negotiate with them is covered extensively throughout this site. Ongoing communications over the phone with your original creditors and debt collectors can progress until you have the money you need to settle.
You should not attempt to negotiate an account, or offer a settlement amount, until you have the targeted dollar amount you need to fund an agreement. It makes little sense to start negotiating a settlement amount if you don’t have the money to pay. Just making calls to “feel out the situation” wastes everyone’s time and could hurt your efforts later.
Your targeted settlement amounts will be different from one account to the next. If you’re working with someone in the network, you’ll be able to set realistic settlement percentage targets, timelines, and goals using real-time data about your creditors and the debt collectors involved.
If you are a DIY reader, be sure to participate in the comment sections of relevant page topics in order to get feedback about timing and targeting for your debts you are looking to settle. The comment section at the bottom of this page is the perfect place to post questions about a settlement letter you have received, or what you could do if you’re having a hard time getting one sent to you.
Reviewing Your Debt Settlement Letters
Reaching a settlement agreement can take one phone call, or it may take several calls over a period of days, weeks, or even months. When a deal is struck, you know that no deal is a real deal until it is documented, and then paid in accordance with the agreement.
Debt settlement letters with original creditors and debt collectors are typically a standard form that will consist of the following:
- The creditor and/or debt collectors name.
- The date the letter was drafted.
- Your name.
- Your account number.
- Outstanding balance owed on the account (this is sometimes missing and is not a deal breaker).
- Amount that is being agreed to as settlement and satisfaction of the debt (less than the full amount owed).
- Terms and amounts of payments to be made – if you are settling the account over a period of time – instead of with one lump sum.
- Date your payments must be received by in order to have met the settlement agreement.
- The settlement letter must reference that the account being satisfied in full i.e. “settled”, “settlement of this account”, “accepted as settlement in full”, “paid in full”.
The letter will have other general information, such as disclosures about settling debt. Creditors and collectors put this information in to cover themselves. The bulleted items above are what you want to see in a settlement letter to cover yourself.
Settling with a third-party debt collector means you must get the above details documented before remitting any payment towards the agreement. If the above bulleted items are missing from your settlement letter, you should request a different letter be sent to you that meets the above specifications.
Watch this quick video about debt settlement letters:
Setting Up an Agreement Without a Letter
Some of the large banks will not release a settlement letter to you until your payment arrangements are set up in their computer system. They will request that you give them specific electronic or ACH payment information over the phone first. Should you agree to this? Yes, in some instances.
If you’re experiencing a creditor or collection agency holding back sending you a settlement letter, be sure to post about that in the comments below to get feedback about how each one of your creditors deals with this prior to settling, or negotiating your agreement and setting dates for payment. This way, you know what to expect beforehand, or can navigate the negotiation and settlement process of a specific account with more confidence.
Schedule your first (or only) payment for a future day that gives enough time for the settlement letter to reach you by mail. 10 days or longer would be best.
- Make payments on the settlement from your bank account that you set up specifically for saving and funding the agreements.
- If you do not receive the settlement letter within 72 hours of when your payment is scheduled for processing, you can call and demand the letter be faxed to you, or the funds will not be available in the account.
- You should be prepared to walk away from a deal if you do not have documentation in hand before the payment date. As a caution, be certain you don’t have the funds in your set-aside account on the date you set up a payment – if you are walking away from a deal.
Providing information and setting payment dates in advance of having received a settlement letter is usually only an option I consider when dealing with original creditors, and in some limited instances, debt collectors working for your original creditor.
Do not release payment information to debt buyers, or debt collectors working for debt buyers, without documentation in hand.
There are some instances where I will recommend you record a phone conversation about agreeing to settle a debt. I always encourage you to tell the debt collector that you are recording the call and why (they refuse to send you the agreement in writing before payment is set up).
Receiving Debt Settlement Letters Via Fax
Technology has provided many conveniences and cost savings when communicating important details that require documentation. Documents can be emailed with the click of a mouse. It may surprise you to learn that banks and collectors do not readily take advantage of technology advancements. You will find that many internal recovery specialists (bank employee debt collectors), and outside debt collectors working for collection companies, are not allowed to email anything to you. One way to work around the delays of getting settlement letters mailed to you is to get them faxed to you.
If you do not have access to a fax already, you can set up a virtual fax service. This would give you a 10 digit fax number that others can send documents to, and you can receive the faxed documents as attachments to an email, or receive an email notice a fax has been sent to you to log in and download, or print.
One of the services I recommend to receiving debt settlement letters via fax is eFax.com. The cost of an efax account, or similar virtual fax services is low. Setting up a way to receive faxed settlement letters is worth the cost when dealing with time-sensitive communication and funding of settlement agreements you’ve made. Getting the settlement letter faxed the same day is especially handy if you follow some of the “end of month”, or “end of collection agency contract” strategies that I lay out on this site, and other personal finance sites.
Working with a debt settlement company, or a professional negotiator, should not mean you let your guard down about getting settlement agreements documented and in your hands. Just because someone else is handling the heavy lifting doesn’t mean you should not be concerned about having copies of all settlement letters. Be sure to get a copy of all debts that have been negotiated and funded from any professional you work with as each of your debts are being settled.
With business trends for electronic data storage, and the fact that computer systems can crash, physical documents this important should always be in you possession.
Conclusion:
Negotiating and agreeing on an amount you will settle a debt for is primarily going to be done over the phone. Once you have a verbal agreement, it must be followed up with documentation. The settlement letter should meet certain requirements before you remit payment in full, or make a partial payment. If you do not receive a settlement letter, or a letter does not include what is standard information to protect you, it’s okay to walk away from the deal. You can receive settlement letters via fax and mail (sometimes even email). No settlement letter means you don’t have a deal. Keep all settlement letters in a safe place with all of your other important documents.
Almost done. The final step in our Debt Settlement Guide is paying debt collectors after the negotiations are done.
If you have questions about your settlement agreements, please comment below for dedicated feedback, or call 800-939-8357, ext. 2 to reach me directly.
This Debt Settlement Guide includes:
An Expert Guide to Credit Card Debt Settlement
How and Why Banks Settle Credit Card Debt with You
Types of Accounts to Include in Your Debt Settlement Plan
Why Settling Credit Card Debt is Like a Race
How to Settle Credit Card Debt Quickly
How to Talk to a Debt Collector
How to Negotiate Credit Card Debt Successfully Yourself
7 Largest Credit Card Banks and How They Settle Debt
Get Debt Settlement Letters and Agreements from Collectors (you are here)
Paying Debt Collectors After You Negotiated a Settlement
I am settling a timeshare account with Split Rock Resorts. We have an outstanding balance of $8,500. They have not sent the account to collections, but my account is delinquent over 5 months. I have been sending emails to them to reach a settlement offer. I received this letter from them “Once the $3000 settlement is paid in full we will be sending you a mutual release document for you and mr to sign and at that time once the settlement is completed it will then will be removed from your credit.” I told her a wanted a debt settlement letter like the one talked about above, but she replied, “You will not receive anything until the settlement is paid in full and at that you will receive the documentation unfortunately this is how the settlements work.” Should I pay the money? Is the email enough proof? The emails do have this at the bottom of each one, “This email is confidential and may contain information that is privileged, attorney work product and/or exempt from disclosure under applicable law and should be read or retained only by the intended recipient. Any review, reliance or distribution by others or forwarding without express permission of the sender is strictly prohibited. If you received this transmission in error, please immediately contact the sender and delete all copies including all attachments.”
If it were me, and I had that email exchange thread, as well as an established paid by date clearly identified, that I have proof I followed through paying by, I would consider making the payment. If they did not follow through I would use the thread of communication in regulatory complaints with the CFPB and FTC, and I would also consider hiring an in state consumer law attorney to pursue the matter if need be.
i want a settlement letter of my jetstore account i want to make a loan so that i can pay it i call so many time but nobody can help my is now three weeks i asking for the settlement letter
Is this a situation where you already paid them the amount agreed to and are asking the settlement agreement in writing after the fact?
I have settled a payday loan through a collection agency but did not receive a settlement letter or a payoff statement the company is Universal and their number is 855-248-9521 what can I do?
How long ago was it that you settled?
Is it showing on your credit reports today? If it is, does it show a zero balance owed?
Received a debt settlement letter in the mail. It reads:
Our records indicate that your balance with XXX remains unpaid: therefore your account has been placed with XXX for collection efforts. We are Authorized to resolve your account for less than the full balance by offering discount options. I have the option to go into CVS or & eleven to pay cash. But my question is by settling this debt by paying the discount amount how does that affect my credit score and how will it show up on my credit report?
Check out these 2 videos I have up on this topic: https://youtu.be/Q7nwb8PvzPk and https://youtu.be/Y7ymhn-26ps
I negotiated a settlement with Rausch Sturm which bought the account from Discover and got judgement against me. But they don’t want send me the letter of agreement. Instead they send me this letter below…….
This letter sets forth the payment agreement that you previously entered into for the above account pursuant to the attached payment schedule. Payments should be sent to our corporate office at 250 North Sunnyslope Road, Suite 300, Brookfield, WI 53005. Checks or money orders should be made payable to Discover Bank. Payments can also be made via our website at https://www.rauschsturm.com. If you have any questions, please contact our office Toll Free at (877) 215-2552 TTY: 711. In the event there is a default on the payment arrangement, the full account balance, less credit for payments already made, will be due and owing. Settling a debt for less than the balance owed may have tax consequences and Discover may file a 1099C form. Wecannot provide you with tax advice. If you have any questions, Discover encourages you to consult a tax adviser of your choosing. Thank you for your cooperation. Yours truly,
It looks unacceptable letter to me and I am about to walk away from the deal. If they send me a formal letter that States as you mention above. Satisfied the debt and agreed in full.
Any suggestion would be appreciated.
David
They are also send me this
PAYMENTARRANGEMENT: TOTALOF$4,063.99 PAID IN 1 PAYMENT: PAYMENTAMOUNT DUEDATE $4,063.99 June 30, 2019
The original amount was 9456.12 owed to discover bank. And they didn’t mention any of it.
David
Thanks. This is a judgment, correct? Is the case number identified in the letter?
Discover does not sell debt.
What is the payment arrangement for the settlement deal you made?
Yes it was identified. Shall I send them the payment ? Is the letter they sent me thru email legit? They gave me a date until june 30 2019.
Thank you
Yes it was identified. Shall I send them the payment ? Is the letter they sent me thru email legit? They gave me a date until june 30 2019. The amount was 4069.99 .
Raush Sturm is the law office represent Discover Bank.
Thank you
Like I mentioned, I would accept the letter if it were me.
I posted it in one of the reply I made to you.
A collector caught me off guard threat to serve me with papers the next day if I didn’t agree to a payment. I was scared and pressured into a payment I can’t afford. They had me give a card number even if $0 balance to secure the agreement but wouldn’t run unless it wasn’t received by mail. Then the day I’d told them I’d mail it out they tried to run the card and threat me again. I told them it wasn’t part of the agreement. Said they’d, “note the account”. They hadn’t send me a letter with the terms or validation,I had to call and ask. They emailed it. Has a different address , and company than what I was originally given. I don’t know what to do. I can’t pay the amount they want.
Check out this post on debt collection scams. What you experienced is what many posters share in the comments over there. I would file collection complaints with the agencies I mention in that article.
I a mess working with Synchrony bank and we reach a dollar amount that I want to pay but they are refusing to write a letter. They say that there’s no was possible for them to do that.
The typically do follow through with sending the letter after your payment is set up in their system. But you should protect yourself regardless. Call them back and cover the details of your settlement agreement again, but this time record that part of the call, and tell them why… because they will not send the letter before you pay.
Hold on to that recording until you get the letter.
My Chase account was charged off after 6 months on Nov 30th, 2016. Then, there collector – Allied Interstate and I – could not reach an agreement to settle on the $7,448 debt. I am unemployed, searching for work, and have other pressing bills to pay, car, utilities….etc.
The collection efforts were then handed over to a SECOND collector, Nationwide Credit, on 12/03/2016. They made an initial offer of 46% of the $7,448 outstanding debt for $3,426. I still couldn’t pay this. Their latest offer came today on 2/24/17 for $1,250 down and $125 per month for 11 months for a FINAL settlement total of $2625.
I hate to say it, but I am still not in a position to move with a settlement. They claim if I don’t move on it, it can be taken off the table, and quite possibly returned back to Chase, perhaps within a month’s time. So apparently they did not buy the debt.
I have until Monday, 2/27/2017 to give them an answer. I know I won’t be able to meet or make those terms. If I can get them to come in lower, and give me an added few months to make the initial down payment, I may be able to move on this. But, hey, how far are they going to bend? Especially when it’s likely to go back to Chase.
I don’t think it’s a scare tactic, I think they are serious. Again, they did not buy the debt.
Any advice you can offer me base on your industry knowledge would really help. Thank you Michael.
Chase stopped selling debt in 2013 and has not started back up again. They also stopped suing people in 2011, and have not started that back up again.
The best settlements on Chase credit cards typically come from these third party agencies they send your account to. Done well, and when it is clear to the collector the situation meets the criteria, you can settle for 20% of the balance at the time. I generally do not encourage monthly payments on those deals, as that can make them harder to get, but I do still see terms with settlements that low too.
I would not be overly concerned with the account going back to Chase (based on trends today). It will go to another debt collection agency and you can settle with them. I would still try to get a deal done with Nationwide that you can commit to though.
Hello,
I have a letter from FCO, with an offer to settle my $5,339.40 debt for $2,669.70. The letter says, “This office agrees to accept 50% off the amount due as settlement in full. Pay $2669.70 of your debt and it is gone! Call by 03/17/17 to take advantage of this offer.”
So, I did…and because I did not have the entire amount I offered $2,500. Well, they called me today saying that now the client wants $3,400 and the previous offer is not longer valid.
Can they do that? Any help will be most appreciated.
Thank you!
Can you come up with the little bit you are missing a few days before 3/17/17?
Hi,
I found an account in collections the other day because of bailing someone out 7 years ago. I called the collection agency, and we agreed upon me paying 1700. After paying the balance of 1700 they would go after the other 3 parties for their portion of the debt. They stated that they would not send me any Deletion Letter until the payment was made. I took notes on who I spoke to and when, but I don’t have anything in writing from them other than the phone calls being recorded on their end. I made the payment, and they said that as soon as the payment posts they would send my letter. Now they are stating that their “client” wants more money, or for me to help them get into contact with these people. I don’t know how to contact these people, they are also a part of a time in my life that I don’t want to go back to. What can I do? I’m out 1700.00 dollars at this point and I’m no better off than I was.
I would make a courtesy call to the collection agency and run the whole thing by a supervisor and ask what they want to do about it before you file your complaint with the CFPB.
Let me know how it goes.
Hello.
I need some help. I been sued by midland funding for 1700$…they sent me a summons and I have written back with a response denying it.. I have now received a request for admissions, request for production of documents, and first interrogatories pronounded to defendant by plaintiff. It’s been a about to weeks since received..
I would like to reach a settlement with them but I need help on how to go about it.. Should I call them? What to say? How much should I offer? When to do it? .. Any input is great appreciated! Ty in advance
Check out this post about settling when sued. It will prep you for making the first and follow up calls, realistic expectations for making an offer, etc. You will have to deal with the attorneys for Midland Funding.
Good day,
I need some help. I owned a business with 2 partners that went south. We closed the business and sold all assets. I decided to attempt settlements on the 3 credit cards we had with Chase, Capital One, and Home Depot. I have called every possible # for Home Depot and can’t get through to someone who can settle this debt with me. I sent a letter on 12-6-16 and still have not received any communication from them.
I followed the recommendations with 2 other accounts and had excellent results and both are settled and closed out.
Here is the letter I sent:
“Start”
Date:
12-6-16
To:
Home Depot Credit Services/The Home Depot Commercial Account
PO Box 790-340
St. Louis, Mo. 63179
From:
Account Holder Info:
Louisiana Lagniappe Developments LLC
Sean Dxxx
2080 Xxxxc
Bxxxx, La. 71cxx
Account #:
6035 3225 3750 1219
Previous Ref # 1227687 (from a previous phone call debt collection attempt)
Personal SS# xxx-xx-xxx (Sean Dxxx)
Outstanding Balance:
$7,670.07
Re: Debt settlement for Account # 6035 3225 3750 1219
Dear Home Depot Credit Services,
I am writing about an account that is in collection/charged off with your company. The account # on my statement is 6035 3225 3750 1219. The account has not been paid on in some time and I want to correct this matter. I have made several attempts to contact someone by phone to settle this debt but with no success. I finally had someone help that suggested I send mail communication.
I was in business with 2 partners and the business relationship began to take a downward spiral in around January of this year (2016). I haven’t had the money to make payments on this account until now due to the process of shutting our business down and stopping all projects. I began to sell all of our assets in June of this year (2016). After closing on our final asset this past week, we are left with a small amount of money to settle all outstanding debt. I only have $2100 left to work with for this account. I am willing to receive a 1099C in the amount of the difference if you agree to my settlement attempt.
Upon your approval, I will immediately release the funds in the amount of $2100 and settle this account (to the address given to me PO BOX 900-1043 Louisville, Ky. 40290-1043). I would appreciate your response including specific instructions as to the quickest way to expedite this settlement. Please contact me if you have any questions. I can be reached during the day at 318-xxx-xxxx, please leave a message if I miss the call. I look forward to resolving this matter.
Sincerely,
Sean R. Diel
“End”
At this point I have prepared a 2nd follow up letter but I want to make sure I use more deliberate wording for increasing the odds of a response.
Any help would be great.
Are you the personal guarantee on the Home Depot account?
I would not send letters. I would call Citibank and negotiate the settlement with them, or with the collection agnecy they tell you they sent or sold it to. Once you get the verbal agreement ask for that to be faxed or mailed to you in writing before you pay.
Hello, I received a settlement letter from National Credit Systems for 60% off the original amount they claim I owe. When I received that offer back in July 2016 I was not financially able to pay. I just recently called them to try and settle with the amount they offered and now their telling me that was a one time offer and I must pay the total amount. Any advice? I am trying to get a new place to live and have been saving up the amount they offered but can’t get into my new place. Ughhh… please help
Who is the original creditor? When did you stop making payments? What state are you in?
I’m dealing directly with comenity capital bank regarding a settlement over the phone.
I am 4months diliquent on payments and looking to settle.
They gave me verbal confirmation for settling 40%, and I gave them my checking information with post dated payment on 01/20/17.
However, they will not release any written settlement agreement or letter of agreement until the payment is cleared.
They claim that they’ll send me a hard copy of the settlement agreement via mail within 7-10 business days after 01/20.
I did receive a letter via email regarding that they received verbal confirmation to process payment on 01/20 but there’s no wording stating the account will be settled after they process the payment.
Please let me know if I should proceed with this or should I continue to be diliquent until they send me a settlement proposal.
I would appreciate any advice since I’m dealing with the creditor directly.
This is a credit card settlement.
The amount has been increasing monthly because of interest.
I am having a hard time to get any settlement letter or agreement in writing. They keep insisting that I’ll receive the letter after payment is cleared
It is not how I would have handled it, but you should be fine if you call back and record the call and go over the details of this being a settlement in full. Keep that recording until the letter comes (and Comenity does send your debt is resolved letters).
There are free apps you can use to record from your smart phone.
Be sure to tell them you are recording the call and why (they will not release a letter before hand).
Hi Michael,
Thanks for the reply.
I am afraid they will just subtract the amount off my balance and not settle anything. Since they did not send me any letter stating the amount will be settled after they receive my payment.
I did recorded all our conversations.
Than you should be good.
If anything screw up on the deal like you fear (but is highly unlikely), you can share the recordings and proof of payment in a complaint and get any error immediately corrected. If something like that were to occur, post an update about it and I will help you.
If I received a letter stating a lump sum amount and it states my file will be updated as satisfied for less than full amount due and RTR will not pursue the remaining balance, can the remainder be sold to another company or is that debt clear?
Done correctly, that debt would be clear. Who sent you the letter?
I settled a debt with Midland Debt for 50% of the original debt. I didn’t get a letter. They took my money and did not live up to the agreement. They subtracted the amount I paid and left the rest on my credit. . I’ve never been in this situation and was completely naive. What is my recourse, if any,
Can you provide a play by play of what happened? I can offer more specific feedback that way. Include dates and names.
Recently i came to a agreement to settle my defaulted car loan with a third party debt buyer. Loan was purchased from a Major sub-prime lender to a crooked debt buyer by way of a forward flow agreement ——llc Address is a small condo down town. The loan was purchased out of a chapter 13 bankruptcy before it was confirmed then never was. Finally came to agreement with 3rd party servicer for a amount 10k less than what I owe and what the car was worth. The debt buyers servicer provided me with the Foward flow agreement, guarantee of title and a copy of the title that was not signed off. And a power of attorney paper. They put settlement in writing but never were able to produce a release of lien which was promised in the guarantee of title letter. so i ended communication with them. Luckily I didn’t send them any money. I Still have the car . I guess I’ll keep it and drive it till the wheels fall off.
Hello, I’m having trouble receiving a satisfaction of debt letter from MIdland LLC.. I’ve placed several calls, gave them my email addresses and my fax and still no luck. How should I proceed?
Was it a lawsuit that you settled? How old is the debt you settlement with them?
hello i just found out two weeks ago that I have a debt from 6 years ago with an apartment I lived in. I have agreed to pay them and make payments but they will not give me a receipt or an agreement letter. This company has several complaints which are all the same stating they have made payments and it is still on their credit report and they cannot get receipts. I need this letter in order to get my new apartment which the state is helping me with and without this letter I will be homeless and I don’t know what to do I’ve literally tried everything. I even went to the previous apartment from 6 years ago and try to pay them but I’m no longer in the system. Somebody please help me thank you so much
the collection agency is ncc business company out of Jacksonville Florida
In situations like this I would recommend filing a debt collection complaint against the agency with the CFPB. The collector may be more inclined to do the least amount of work that way, which they do not seem to be up to that task currently.
I went ahead and did so. thank you so much for your help! glad to see good people still exist:)
I have been on monthly payments with Portfolio Recovery since 2014. Today I received a letter in the mail stating that I owe way less than what is owed.
However, the letter they sent is different than the one I usually receive from them stating that my payment was made.
How do I know what amount is right if they claim I owe the bigger amount but the letter they sent says otherwise?
I mean if it was up to me I would fight them if they said otherwise because it was their screwup.
Call in and get clarity from them. This could be sent in error, or they may have had to go back and make adjustments to your account. I would want to know what is up and why.
I have settled my account with Discover Bank in full. I have gotten a settlement letter with the payment date and amount on it, as well as the bulleted information in this article. The only problem is that I need it with a letterhead and not the attorney’s who I settled with. They are telling me that I won’t get it for 21 days after the payment is received, which is the 19th. If they have my money, can I demand an official settlement letter with a letterhead be faxed to me?
If Discover is who sent the account to the attorney for collection, it is normal for the collection attorney to use their letterhead. If it were me, I would not request a different letter. I already have what I need.
Now I am needing a receipt of payment. Zwicker is refusing to send it to me for 30-60 days. Is this unreasonable since they have my money and I have settled the account as paid in full?
It is just their standard lettering process, and is fairly consistent with not just Zwicker and Discover Bank. Are you trying to get a mortgage loan approved? Is there some other need for expediency?
I am trying to get a mortgage loan approved. I am without a place to live come February, so time is of the essence. I have submitted my settlement letter as well as an ACH receipt of payment. The amounts all match up, but my broker is saying that the credit bureaus won’t accept it.
Your mortgage broker should be able to work with you to do a rapid rescore. If they are not familiar with that than you may want to work with a different bank or loan officer. You can also dispute this with the credit bureaus directly. Check out that article for the details.
If your DIY dispute with Discover – to update the credit reports as paid – is not successful, post an update and lets go from there.
If it were me, I would give them a few weeks after payment is received for the credit report update. It is standard to have it take that long.
I did not read your article before I settled my debt. The collector has promised after 4 phone calls to email me my settlement letter and they haven’t. What can I do? Money was already taken from my account.
Who is the collection agency you are dealing with?
Thanks for all of your helpul information! I’m dealing with a debt collector who’s claiming to be an attorney for the original creditor, an apartment complex. They are claiming I owe 3200. This debt was originally with another ca who has since given up collecton efforts. I abready have sent my letter if validation. I also know that I don’t owe that money, but have no way of proving because I do not have my documents (debt is from 2013). I would be interested in settling for 1000, as that’s what I could pay in full. Verbally, how would you word this when calling so not to admit to the debt? Also, is 1k “doable” in your opinion? I would like to really nail what to say and what to be prepared for before calling. Thanks!!!!
Check out this video about what not to say to a debt collector.
You are dealing with an attorney collecting. It would be a good idea to review this page about settling when sued, even though that has not occurred. It helps to have that same awareness when you are dealing with collection attorneys.