What Kind of Settlement to Expect from Gurstel Law
I received a summons from a law firm Gurstel Chargo representing Barclays. I filed an answer, requesting proof that it is my account. They sent me the proof and say I owe them $2338 from a credit card I opened in 2012. The last payment I was able to make was March 2014.
The letter says that I can call and avoid further litigation.
When I call Gurstel Chargo, what kind of settlement could I expect? Should I start at 50%?
—JG
Settling a debt with Gurstel once you have been sued is going to be different from one account to the next. There are different stages to legal collection. Here are some things I want readers to think about.
You are generally at more of a disadvantage when Gurstel has served you the legal papers, but you have not filed an answer or a defense.
You are at even more a disadvantage if they get a judgment against you.
Given the choice, you will typically want to be negotiating a settlement with Gurstel Law when they first get the account, or have not started the lawsuit yet, or when you have filed an answer and appear to be digging in to fully defend against them. The reader that submitted the question is in the latter category, which is not a bad place to be.
How Low You can Go Depends on You
I am generally a fan of single lump sum settlements, and not just when negotiating litigation files like you have going. But even more so when dealing with debt collection law firms like Gurstel.
The main reason I favor lump sum pay offs is not just because you can often get a better deal, but because life happens. If you make the first payment, but fail to make the next, or a later one, any deal you made is usually void, and you are back to square one.
It is worse than life happening when you are settling active court situations where their has not been an outcome yet. That is because collection attorneys are typically going to ask that you sign off on a stipulation or consent to judgment in order to agree to the monthly payment terms. And this means not just losing out on savings you may have negotiated, but could mean you have a judgment on your credit reports too.
I know there are times where monthly payments are worth setting up. Avoiding wage garnishment, bank account levies, or property liens are BIG motivators. And when that is all one can do, it just is what it is. I do encourage people to look at all options to avoid that happening.
How low will you be able to get Gurstel to go? It can depend on how collectable you look to them. I cover this aspect a great deal more in how to settle when sued. And I just did a video interview with a former debt collector about the different ways debt collectors see you:
How you fit in to what Jared and I talked about in the video is just as applicable when you are dealing with collection lawyers.
My general feedback when trying to negotiate collection lawsuits that are still open is that 50 percent settlements are optimistic, but still realistic. Would I start with a 50% offer? No, I would start lower. But I would also be prepared to pay more than 50% depending on how the negotiations develop.
You do not need to negotiate the whole deal in one phone call. It is okay to go back and forth, but I would not counter offer in tiny dollar increments. If settling is your goal, and you are not under a time constraint of having to file an answer to avoid default judgment, or a week from the judge ruling on their motion for summary judgment, or some other formal court calendar event, you can incorporate time into your negotiations strategy.
Defending a Lawsuit from Gurstel
Much of what I posted above is for general information that people can consider when they first set out looking for information on how to handle being contacted or sued by Gurstel. You have already done enough research and background information to have filed your own answer and be preparing to negotiate the best outcome.
If you have just been sued by Gurstel you may want to consider your options differently depending on who hired them. The reader that submitted the above issue is dealing with Barclay bank as the plaintiff. Being sued by an original creditor is often a different animal than when Gurstel is suing on behalf of a debt buyer.
Strategies used to defend against a debt buyer are better (in my opinion) than when dealing with an original creditor.
You also may want to consider your options differently depending on what state you live in. Gurstel has offices in Minnesota, Arizona, Iowa, Nebraska, Utah and Wisconsin. It can be harder to defend against debt collection lawsuits in one state compared to another. Some courts, and some state laws, are just more friendly to the consumer debtor.
What you do from the moment you are aware that Gurstel is collecting on a debt can make a big difference on the outcome. Anyone that wants to discuss your options and strategies with me can reach me at 800-939-8357, option 2.
Anyone with questions or concerns about resolving a debt with Gurstel is welcome to post in the comments below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
I am currently being sued by Gurstel on behalf of Capital One. I had a credit card with a max of $4,250, but that number is now closer to $5,500. They came to my house, knocked on the door, and tried to serve my wife. She declined to accept it. However, the server just clipped it to my front door and left. I am considering settling for 50% if they’ll take it. But do I have a case since I was never properly served?
I should add that I have already filed a response with the court and have a meeting slated for next week. Also, should I seek moderation if they won’t accept 50%?
Talk to an experienced debt collection consumer law attorney in your state about whether they effectuated service, or if your filing your answer may make the proper service question moot.
I do often see settlements range from 50 to 80 percent in this situation, and sometimes the deal is made in mediation through the court.
HI back in 2021 I borrowed money from Upgrade. THen i got divorcred, had to fight in court for custody, had to pay bills, rent, help my sick mother financially and i have a problematic car that i missed payment. When i called upgrade they told me that they sold my account and to wait for them to contact me. As soon as I received a letter from Gurstel law firm i contacted them and begged them if i can make a payment arrangemet in lower amount. They refused. I spoke to anothe lady and she told me to make a payment at arsigroup.com when i went to the webiste it does let me make payment or payment arrangement. so I emalied arsigroup.com 2x and i never received a reply. Today, i received a summon from Gurstel law firm? i really do not know what to do, where to start. I am scared. I have no money. What should i do? i still work but my bills and child support is just too much for me. Please help. Lutchie from California
What is the amount Gurstel is suing for?
What do all of your other unsecured debts add up to?
May I contact you, I have a certain issue with this law firm. my husband is active duty and they they in not so many words told me they would contact his command
i am in a payment agreement, but i need to settle. I am close to bankruptcy
You can schedule a phone call with me here: https://calendly.com/debtbytes/15min
I am in collections with Gurstel Law Firm but it is only in the pre-legal process. I owe around $4000 from a capitol one card but want to settle and get my credit back on track. This is someone I have avoided over and over but finally called in and I explained my hours and wages being cut with the pandemic and since I got my stimulus check I was hoping to use that as a starting point in negotiations to settle. They countered 1400 with 3100. When I said I couldn’t they just said okay and to call back when I can afford the 3100 or when I’m ready to settle… I want this done with. I don’t want to call back over and over to negotiate. Am I expected to do that? Or is settling on one call reasonable? Any suggestions at this stage in my collections process?
Settling on one call is possible, but typically not for the optimal savings.
Settling with a collection law firm like Gurstel is often going to be between 50 and 80 percent.
I just became aware of a lien out against me because of a default judgement from an ax count opened in 2004. They supposedly served me in 2013 but to an address I no longer lived at. Therefore I had no idea about any of this until now. They are now saying I owe $13500 due to interest. I tried to settle at 50% and they said No. the worst part is they say this account was opened in 2004 and I Know I did not open any accounts during that time. I believe it was my ex husband that did some dirty work. Can you give me some advice as to what I can do next?
I would look into whether it makes sense to try and get the judgment vacated. You were never served, and did not live at that address. You would have caught the fact that this was not your account, or one you knew about, had you been served.
Talk to an experienced debt collection defense attorney.
What state are you in?
My wife has a summary judgemnt against her that was dockeded April 2015 and recorded April 2018. The creditor was Capitol one Bank in the anount of $4200.. Attorney is Gurstel Chargo, Scottesdale, Az I wish to get a lump sum settlement of the debt. Not sure if I should be doing it my self or thru an attorney.
Existing judgments do not settle all that well. You are likely looking at settling with Gurstel for between 50 and 100 percent of what is owed on the judgment as of today (courts often grant interest on judgments).
You can call yourself, or hire someone to negotiate for you.
When negotiating a debt before it ever goes to a collection law firm, like Gurstel, you can often try, and hire a pro if things are not going well. With lawsuits I would pick the negotiation path and stick to it.
I received a letter from Gurstel law firm stating my debt of the original creditor but the current holder of my debt (debt buyer) has never sent me any correspondence regarding the debt. How should I proceed with this one?
What is your goal for resoling this?
I received a summons via mail from Gurstel Chargo/Cavalry on a Citibank card I stopped paying a few years ago in the amount of $1,300. I also received a claim/notice of being sued for another Citi card in the amount of $7,100.
I responded to both asking for debt validation/chain of custody. I seem to recall both being sold to at least one other debt collector in the past (Northland Group) who obviously failed to collect.
I am currently trying to rebuild my credit so I do have open and current credit cards. I have one student loan and a joint mortgage as well. There is no equity in our home and it’s currently being rented out in Mississippi and we live in Minnesota now.
I am not currently working and do not plan to go back to work anytime soon as I have two young children at home. I have no income. I’m married but the debt was prior to our marriage.
What are my risks? I’ve already filed answers because I was scared to ignore or let the window pass. Should I get an attorney? Should I try to settle?
I’m only worried that my husband can be brought into this. Am I wrong in thinking that I’m “judgement proof”
Northland Group is a contingency debt collection agency, and typically does not buy debts.
Can you pull together half-ish of what is owed in order to settle? Are you more motivated to do that than to defend the suits? If you are more inclined to defend the suits, I can email you a list of experienced debt collection defense attorneys in Minnesota. Two that come to mind are Blake Iverson and Pete Barry.