Settling Debt With Asset Acceptance
I have been to several places asking for advice and thought I would make this my last stop before deciding what would be the best option for me and my situation. I have accumulated debt from a Citibank card as well as a few other accounts totaling around $7000. Asset Acceptance filed against me this month November 2012 for $4,585. I am confused as to why not the entire $7000, but maybe that is all they could at this time. My main worry though is this $4,585! I found that they were suing me by Attorney’s who sent me notices in the mail that I was being sued. I’ve not gotten anything official from Asset Acceptance yet, however I can only assume they will be serving me soon. There is a case number, an event date of March 2013 with the reason they are filing against me which is BREACH of Contract. It’s in PENDING MODE. I don’t have the funds to pay the full amount but can definitely pay one lump sum payment of $2000 or possibly even a little more to make it exactly HALF of the $4,585. I’ve been told to wait for the docs and then go to court but really hate the idea of dishing out more money for an attorney!
Is offering that settlement amount a good idea based on the information I have given you? My other question is, do I let them know that I know they have filed against me for that amount and say I am prepared to settle now and send them a money order for $2000? Once they agree of course. Or should I just wait it for the papers first and see if they include which account and then write the letter asking to settle??
Thanks!
My response from 11/23/12:
jo – Thanks for recognizing your question as one that can only be answered based on the limited information given. My feedback is limited to what I would do if I were in your shoes, but with the benefit of generalization of my experiences.
I would do one of the following (or both) depending on how things shake out.
1. Attempt to negotiate a lump sum pay off of the purchased citi debt with Asset Acceptance. I would target a settlement of 40 to 60% in my efforts (starting with the low end, but prepared for the high).
2. If negotiations were not productive and no settlement reached, I would wait to be served, contact an attorney with debt collection defense experience, and spend the money to defend the suit rather than pay the junk debt buyer what I offered.
That is the short version. A longer version would be to ask you a litany of questions in order to better target my feedback. I would want to know what state you live in, who the other accounts are held by, why you assume all accounts are with Asset Acceptance, what your projected financial abilities are to tackle the other debts using lower pay off negotiations, and other assorted questions.
If you are interested in taking the discussion and feedback further by answering those questions, please create a new post by clicking “Ask Michael” in the upper right navigation at the top of this page. Include the current situation, and answers to my questions.
Jo response to my questions:
Hello Michael,
Thank you for taking the time to offer your expertise! I should have mentioned that I live in the state of Texas. As soon as I received these attorney notices I opened up an account at freecreditreport.com and discovered that Asset Acceptance have bought my old accounts that I owed money from. Now after viewing your questions I checked my report and it is only four accounts bought by them. The rest are other companies. I have not heard from any other company and have not gotten any notices about being sued by anybody but by Asset. I guess I would want to focus on them first.
My summary on freecreditreport says Installment Debt $7,521.00 which means they are only reporting what Asset is trying to collect. I totaled up the accounts bought by them and it does come to that anount of $7,521.00. However, the case they have against me sayings they are suing me for $4,585.00
All of these accounts last payments are from 2009. I need to look at my old statements to gather more information because they only list the account numbers on my credit report. From my memory though I know I still owed money to HSBC, Citibank, Care Credit and Express.
Financially I have about $2000 I can pay right away in one payment. I could possibly increase that $2500 within the next month or so…If they demand more and will not settle with that amount, then I would need to make monthly payments for the remainder of my debt. I could probably do about $200 a month, maybe $250.
I hope this new information helps more. I’ll look through my old statements this weekend. I kept a lot of them.
What can I do with the petition filed against me by Asset Acceptance?
—Jo
Settling with Asset Acceptance Corp after they bought your Citi bank credit card accounts is not complicated. Debt buyers like Asset Acceptance purchase defaulted and charged off credit card debts for a steep discount in order to turn a profit. They know they are not going to be able to collect on all of them. But with the discounted rate they get when buying up bad debts, they do not need to collect on all of them to turn a profit.
How Asset Acceptance Goes About Collecting Debts
Debt buyers tap into the huge debt collector infrastructure spread out around the nation. Some of the debt collectors Asset Acceptance may send debts off to for collection will be collection agencies that simply chase down payment by:
- Sending collection letters through the mail
- Ringing your phone with a persistent barrage of debt collection calls
Asset Acceptance, like other debt buyers, has developed relationships with a network of debt collection attorneys across the country. They will generally place accounts with collection attorneys when they have targeted accounts that have been identified for potential collection lawsuits.
Asset Acceptance is a large participant in the debt collection and debt buying space.
Debt collectors, debt buyers, even debt collection attorney firms that meet a certain size, will soon be under the supervision of the Consumer Financial Protection Bureau (CFPB) starting 1/2/13. Asset Acceptance would certainly meet the criteria of a larger participant set out by the CFPB (10 million dollars in yearly revenue).
Asset Acceptance earlier this year settled a complaint filed by the FTC. From the settlement with Asset Acceptance announced by the FTC:
The FTC’s nine-count complaint charged Asset Acceptance with:
- misrepresenting that consumers owed a debt when it could not substantiate its representations;
- failing to disclose that debts are too old to be legally enforceable or that a partial payment would extend the time a debt could be legally enforceable;
- providing information to credit reporting agencies, while knowing or having reasonable cause to believe that the information was inaccurate;
- failing to notify consumers in writing that it provided negative information to a credit reporting agency;
- failing to conduct a reasonable investigation when it received a notice of dispute from a credit reporting agency;
- repeatedly calling third parties who do not owe a debt;
- informing third parties about a debt;
- using illegal debt-collection practices, including misrepresenting the character, amount, or legal status of a debt; providing inaccurate information to credit reporting agencies; and making false representations to collect a debt; and
- failing to provide verification of the debt and continuing to attempt to collect a debt when it is disputed by the consumer.
I point out the CFPB supervision, and the FTC settlement with Asset Acceptance earlier this year to show that they have had issues with bad behavior in the past. If you experience any type of questionable collection tactics from Asset Acceptance, there are people watching for that and they do take it seriously.
Negotiating and Settling a Debt with Asset
Over the many years I have been working with people facing collections from creditors, debt collectors and debt buyers, my experience tells me the vast majority of people want to repay their debts. Sometimes however, people are faced with the inability to pay off debts for an extended period of time. This means resolving charged off credit cards with collection agencies and debt buyers like Asset Acceptance. Negotiating the lowest possible lump sum pay off is one way to get that done.
How to settle with Asset Acceptance is something to determine only after you learn more about whether you should settle a debt they bought. That is why I posted the excerpt above from the FTC settlement.
Jo, who submitted the questions above, lives in a state with a 4 year statute of limitations (SOL). A lawsuit brought by Asset Acceptance in Texas would appear to be within the time to sue because Jo recognizes the accounts were last paid in 2009. That may not be the case with others who read this page.
The main reason I asked Jo to start a new post with his issues that he raised on the other page about settling judgment debt, is for the purpose of drilling into whether settling debts vs bankruptcy made more sense. In Jo’s case, if Asset Acceptance can be settle first, followed by a realistic plan to save up and settle the other debts, I can see where settling to avoid bankruptcy makes sense.
Settling with Asset using the targets I originally responded to Jo with is doable given the available cash on hand. If settling an account that Asset Acceptance bought and responding to them directly, or to a debt collection agency they placed your account with, the lower 40% target is a reasonable settlement goal. When an account is placed with an attorney debt collector who has already filed suit, the higher 60% target would be a reasonable goal. In either case, hitting a lower target is not impossible, but it is not a realistic expectation for everyone.
Because Asset Acceptance placed the account with an outside collection firm, you will typically have to work with the agency or firm who is collecting for Asset in order to settle the debt. Settlement is generally instigated by a phone call. Not all settlement deals can be negotiated with one call. They sometimes require two or more.
The information you provide during a telephone negotiation should be limited to the hardships that created the inability to pay your creditors in the first place, and the hardships you experiencing today. If you want to settle a debt, rather than set up payment arrangements, you would not discuss the amount of money you can come up with each month. You would limit your discussion about money to the amount you have available in a lump sum right now, or can put together in the next week or two. For Jo this means sticking to the 2000.00 to 2500.00 available.
Once you reach a deal you can follow through with, follow the tips I posted about getting a settlement letter and agreement documented.
In Jo’s case provided above, after the priority debt with Asset Acceptance is settled, saving up 200 to 250 a month can be accumulated to settle each remaining debt one at a time. Jo could find the rest of the debts resolved in 2013.
Settle with Asset Acceptance or Fight a Lawsuit
Debt buyer lawsuits can be defended. Your best bet is to hire an experienced collection defense attorney. There are a few I can refer Jo to if that is requested. Hiring an attorney to defend a debt buyer lawsuit has a cost. For Jo that cost would probably be somewhere around what it would cost to settle with Asset Acceptance (or higher). While there is a whole lot of success out there with attorneys defending against debt buyer suits and getting them dismissed. There are no guarantees.
Settling in this instance, and having a plan to tackle the rest of the remaining debts systematically, makes sense.
If however, a settlement with Asset Acceptance at the targets mentioned above cannot be achieved, defending the suit would then make sense.
My opinion of settling credit card debts vs Jo filing for bankruptcy with what is known as of now?
With roughly $8000.00 of total debts known at this time, and an estimate of settling the debts over the course of the next year or less for about 4000.00, Jo would be filing bankruptcy (if a chapter 7) over 4k of debt. While there are situations where that will still make sense (when being garnished would be one), I can see a clear path for Jo to avoid bankruptcy by settling debts instead.
The national average cost for filing straight chapter 7 bankruptcies is roughly $1800.00. That includes attorney fees, court costs and all. Jo has the money on hand to file now and discharge all of the debts hanging out there. Bankruptcy is a fresh start, collection calls stop, and lawsuits are stopped in their tracks. It will be something for each individual to consider for their own set of circumstances. For Jo, another estimated 2200.00 would mean avoiding chapter 7 bankruptcy, which can only be filed once every 8 years.
Jo – I want to thank you for volunteering to move your issues to a new post. I wanted to focus on your questions and circumstances and build a post around Asset Acceptance so I could direct readers to the page in the future. That is why I outlined my responses so broadly above, rather than targeting them to you directly. Let’s take it from here in the comments below where my responses will be more direct to any follow up questions or concerns you may have.
Anyone reading with questions or concerns about resolving debt with Asset Acceptance is welcome to post in the comments below. You can also request a consult with me one on one.
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.
If my son was locked up since January 1st of 2007 I don’t know who opened his account and I don’t know who gave them permission to do that but my son has no knowledge of this account he’s been in prison since this time and he does not know anything about this account.
Sounds like ID theft. Check out this post: https://consumerrecoverynetwork.com/identity-theft-prevention/
Back in January 2005, I received a judgement against me from Asset Acceptance (original creditor Citibank) for a $2251.36 plus $180 in fees for a total sum of $2431.36 with the sum bearing 7% interest per year. I did not have the money to pay at the time. The judgement is no longer on my credit report but come to find out they are still able to collect on this debt in Florida (where I live and have lived) for 20 years. I received a notice for wage garnishment about a month and a half ago from Mcmcg (which I now understand is midland credit, which in and of itself is confusing because I thought asset acceptance was the collector) and claimed exemption as I am head of household. I went to court on the date given to find they had filed a voluntary dissolution of writ of garnishment so the judge sent me on my way and said I didn’t need to do anything at that point. I thought things were done, at least for now, but I have now received a fact information form dated 17 days ago and said to respond within 30 days, I do not own a home, I’m renting, and my car is a 2000. I have been trying hard to save money since April to buy a home for my family (basically I have money in my account that I don’t want to disclose, only about $5000 but I don’t want to give them all that.) I’m sure with the interest my amount is about $5000 or so over the last 11 years, though I’m not exactly sure because they don’t come out and say the exact amount of what’s owed just sent a copy of the original judgement with what I mentioned earlier. I basically want to know can I try to get a settlement to just be done with this? Like I mentioned I do not want them or anyone having all my information so I’d really prefer not sending in the fact form, Would attempting to settle for $1500 be too little or how much should I try for? Also to whom and where would I send a letter attempting to settle the judgement ( I sent the exemption to the attorneys for the plaintiff which seems to be Midland, in Tampa, Fl.; but the address on the fact form is warren, mi for the same attorneys listed previously)? Please let me know what you can as soon as is possible. I appreciate any help you can offer.
Midland Credit and Midland Funding are owned by Encore Capital. Encore Capital bought Asset Acceptance a couple years ago.
You can still settle. Fill out the talk to Michael form in the right column. I will email you to set up a time to talk on the phone when I see that.
Hi Mike,
Just came across your website as I found out my husband also has judgement from Asset Acceptance and just like BetsyO from 11/17/16 post we are in same situation….credit card company debt sold to Asset and now trying to buy a home. We are in AZ and did not show up on any credit reports. It dates back to 2011 and shows balance of $2804.89 and judgment since renewed in 2015. What is best what to resolve? Not sure if it’s higher than this now or not? What can we do? Any advice is appreciated.
You typically want to call and resolve it in order to reach your home purchase goal. Check out this video first though: https://www.youtube.com/watch?v=QpdDks73QUw
I had a citibank credit card and stopped making payments back in 2005. It was charged off and Asset Acceptance LLC purchased and they hired Emmett L Goodman Jr LLC.. They sued me ( don’t remember the year they sued me) I answered the suit and told them I was going to pay them 100 dollars a month.
I moved and heard nothing from them. They somehow obtained a judgement against me for 3821.17. I received a letter from them in 20015 but I didn’t bother to call them I just though it was a mistake because they had not served me any papers to sue me in the place where I now live. I just received a new letter from them stating that the account remains unsolved and if I don’t contact them by August 3, 20016 their client will proceed with further collection efforts. This judgement is not in my credit report and I am currently unemployed.
How can I resolve this matter. Should I call them to settle.
There are a number of reasons I would look at settling with Asset Acceptance.
1. In order to save the most money.
2. Stop the debt from growing with interest the court likely set.
3. Prevent the judgment from being domesticated in my new state of residence (further emboldening bank levy and other collection efforts).
Are you in a position to raise about half of the balance owed today in order to settle?
I can raise about 1000 dollars in 2 weeks.
I don’t think you have much of a shot of settling with Asset Acceptance for 1k. You will need closer to 2k as a realistic, and still optimistic amount.
The quicker you can pull the money together the better. They do have extra ordinary collection options available due to the judgment. Depending on the state you live in, this could include wage garnishment and/or a bank account levy.
HI Michael I just received a judgement today! From Assest Acceptance LLC. My credit union sent me the papers they are going to garnish my bank account. I have no money in there. My hours got cut back at work but just landed a new job. Should I contact the lawyers Daniel j Santucci located in Philadelphia to make payment arrangements or is to late I live with my sister is don’t own nothing the judgement is for 2600 thanks for your advice
You can call the attorney for Asset Acceptance and set up payments. I am a big fan of pulling together a lump sum to offer as a settlement for debts like this. In other words, coming up with, say 1,300.00 and negotiating that as the pay off.
How long would it take you to pull that kind of money together?
I reside in Texas.
I had a company credit card debt with Bank of America. The debt was offset by settlement of monies owed my company by BOA.
The last payment was made to BOA and the account closed in July of 2010. Despite the settlement agreement, BOA sold the account to Asset Acceptance. with no mention of the offset included.
Asset Acceptance sent collection letters and made calls. I hired an attorney and we asked for validation of the debt. None was forthcoming.
Despite my ongoing unanswered demands for validation of the debt,, for three years, Asset Acceptance kept the debt open on my credit files, showing an increasing balance each month.
The statute for collection in Texas is four years. That expired in July of 2014. For a valid account, the reporting could continue till July 2017.
Within the last 30 days, the Asset Acceptance debt was removed from my credit reports.
Any idea why that would happen?
Periodic review of files and something your attorney sent that had been ove3r looked before was seen by the right person at Asset Acceptance.
BofA somehow reviewed old portfolio files and caught a bad batch and recalled the debts from Asset Acceptance.
There are several plausible reasons the debt would come off early like this. It could have just been a glitch, and Asset Acceptance will not pop back on your credit reports, or it could pop back on. If it does show back up, post an update and I can offer some actionable feedback from there.
If i were to agree with the 1500 down and 6 mos of 333.00 payments, (i have 1500 available to me) due to the fact i cant come up with that much to settle (closecto the 3000) and they arent budging on their end. Do they have a right to any of the wage garnishment, bank levies, ect? While i am makingvpayments?
They generally are not going to pursue any other collection efforts when you have a written agreement with you that you are on time paying. If something like that did happen, post an update and there are immediate actionable steps to take.
Even though they have a judgement against me, do i have a right to request the original amount and how all the interest was calculated? And soppose they cannot provide that information, does that help my side at all as for trying to settle?
The time to address all of that was prior to the judgment being entered in the court. They do not have to provide that information, so it will generally not help you to focus on the issue now.
I can do the 1500 down and pmts of 333 over 6 months, i didnt realize that, and he made me aware that the total was 3700 with the interest. He said that they wouldnt even do half. Does mentioning bankruptcy a bargaining tool? Do i have any options of negotiating left? I was hoping tovhave better result than i did, was hoping that it was the start of putting it behind me
The results of settling these types of debts will vary. I have a large resource page for settling judgment here: https://consumerrecoverynetwork.com/question/can-you-settle-credit-card-judgements-like-other-debts-stressed/
There is another resource about using bankruptcy as a means to negotiate a better outcome.
Often the best strategy can be time. Letting some go by until you engage again in negotiations. The risk with letting more time go by when there is already a judgment is that you can end up with a lien, bank levy, or wage garnishment.
The court date for the motion tovrenew judgement is this april 15, so what do you suggest?
If it were me, it would not be about the judgment renewal. That is a forgone conclusion even if you agree to the payments, as they will do it to protect their interests.
It would be more about affordability or maximizing savings from settling, or whether I am exposed to extraordinary collection activity.
You have time to work with the less exposed you are to lien, levy, or garnishment. With your stated goal being to avoid garnishment or bank levy, you need a lump sum amount to counter with, and that is close to the 3k already on the table.
I had a judgement in 2008 by asset acceptance for sams club credit card. I got certified letter from muni court that they are renewing judgement. Then got a letter saying there is a hearing, i want to avoid bank attachments or garnishment. The amt is 2600, shall i call them direct to negotiate a settlement.? And request in writing before paying agreed amt. Thank you.
You can call Asset Acceptance directly in order to negotiate the pay off you can afford. Be prepared to get routed to an attorney that may be handling the collection for them.
Use what I touch on in getting what you negotiate in writing as a reference for what to look for in what they send you.
I am in ohio, does the statute of limitations apply to my situation, at all?
There is an SOL for how long a judgment can remain collectable in Ohio, and I think it is over 20 years with different renewal times (which they are unlikely to miss).
The date set to renew judgement is april 15, how far ahead should i contact them, and upon agreement of settling, do i contact the court to inform them ofvit?
You can contact them anytime. I would make sure that any agreement you make to settle includes their updating the court that the judgment is satisfied. That will save you time and potential costs.
The funds i will be using for the. Settlement will be available to me around april 15,
You can usually set a specific date for the settlement funds to be in hand when you are negotiating. It is not uncommon to get debt collectors like Asset Acceptance to agree to a 2 week lead time for the payment date.
I called to the attorney office to negotiate to settle the debt. The letter states 2593.85 plus post judgement interest of 8%, he told me the lowest they would go was 3000.00. Payment plan would be 2,000 down, three pmts of 333.00 to settle. I said what about 1500 then 6 payments, i then said i would need to seek advice from an attorney. He said fine, let me know. I spoke as carefully as possible after reading through your do’s and don’t s, of negotiating with the creditors. Tell me your thoughts on it.
A settlement is only as good as your ability to pay it. Can you afford the 3k now or totaled over 3 months?
I have an outstanding debt for around $3,800, it was sold to Asset Acceptance, which is being very aggressive in collecting their money, first let me state, this debt appears no where on my credit report, it is from 2011, I offered to pay the credit card company , years ago, when I settled with many other companies and they were not interested in doing so, now the third party company is calling my mother in law, and sent papers to my husbands place of employment for wage garnishment, in my name, they must assume, that I work their, because it is in my name not his, this account also has my name, but the wrong SS number, I told them this in the beginning, but the place it was issued from, Walmart, insisted that it was not a big deal. I do not work, and we are all ready being threatened with foreclosure on our house, because we do not make enough cash to pay all of our bills. I currently stay home and take care of our three children, as well as serving as their leading coach for online schooling, and helping to take care of my dad, who has Alzheimer’s. My question is can they garnish my husbands wages, he is listed no where on any of the court papers, it only has my name, and frankly we can’t afford to have less coming in, when we aren’t even treading water right now. Is there anything I can do about this?
Thanks,
Jamie
What state are you in?
Ohio, this is an individual account, it does not have my husband listed on it, and they think I work where my husband does.
I do not see them being successful with garnishing your husbands pay. He is not you.
What was it that was said to your mother in law? Is it a collection law firm out of Ohio trying to collect on behalf of Asset Acceptance? If so, what is the name of the collection firm?
It is a law firm out Of Cleveland Ohio, it is Javitch,Block and Rathbone. They gave my mother in law the account number and told her that I needed to contact them about a money matter, and wanted my contact numbers. She gave them the info and then they told her to give the information to me too in cause they couldn’t get a hold of me.
Ah, I see. Good to know.
Thank you for the helpful link. That was very helpful.
And Thank you so much Michael for all of you help.
Carlos
Yes I agree. My apologies, I have one last question that resonated in my head. Would I have to request a 1099-c after my payment is submitted? Not sure how that works, but I was told by my older sibling that just because Asset sent a settlement paid in full letter, doesnt mean they cant report the remaining balance to the IRS. My brother states I will end up being taxed for the remaining balance somehow. Nevertheless..(sigh) if you have time to answer this question, then thank you. Either way, if that comes up, I will deal with it, if and when that should arise. I sincerely thank you for all of your time. It was much appreciated.
Carlos
Whether or not you will owe taxes on forgiven debt when the amount forgiven exceeds 600 dollars, is an exercise you can walk through right now by following the outline and IRS links in this article: https://consumerrecoverynetwork.com/debt-forgiveness-taxes-settled-credit-card/.
Not everyone winds up owing tax when they settle debts with creditors, or debt collectors like Asset Acceptance. If you do end up owing the tax, be ready to calculate and pay that the following year after you settle, whether the company you settle with sends the 1099c or not.
And do not worry about additional questions. That is the purpose of the site.
Hi Michael,
I’ve been paying 50 bucks installment payments to Asset Acceptance for about 2 years via certified mail. My balance was 3500. I recently stopped paying on time about 6 mos ago and I sent them a certified letter as to why I stopped (temporary layoff) Now im back at work, and get a letter from Asset asking if I’d be able to pay 1530.20 on a 2620.00 balance. They issued a discount and in the letter it states by accepting the offer a zero balance with the creditor and a paid account letter upon request. I have the funds to pay the discounted offer. My question is this: Is it better to write a check or to get a money order? I will send via certified to make sure it reaches them before the expiration date noted in the letter. Thanks for your help. Carlos
You are paying Asset Acceptance the full amount in their settlement offer. Either method of payment will work. I would choose the payment method that is easiest form me to track now, and later if I ever needed to. That will often be payment direct from your checking account.
Using your personal checking account in this instance is not a problem. If it became one, it would be a quick fix.
Thank you Michael for your response. I prefer to write a check as well for better tracking purposes. I was a little hesistant on sending a check due to various sources stating that collection agencies can tamper with your account once they have your account number etc. Nevertheless, thank you again. It feels good paying off my last outstanding debt. I’ve learned a lot through this ordeal and i’m more keen to adhering to better money management choices.
Carlos
Great work getting all of your debts put behind you. Best of success to you as you move on to a better financial future.
As far as payment to debt collector warnings, the concerns were far more valid in years past than now. And especially with larger debt collectors like Asset Acceptance.
I get the reason for caution, then and now. At the end of the day, people should pay in a manner that:
1. Meets the requirement of the agreement you negotiate.
2. Makes you feel the safest.
Hi. I received a settlement letter from Asset Acceptance. It states that due to my debt being so old, they will not be sueing me and are interested in settling for 90% off the original debt. I live in Washington D.C.
My question is, I heard that if you pay off a debt through a settlement agreement, the collection agency can sell the remaining balance, in this case 90%, to a new collection agency and then I will still be pursued for the balance by a new collection agency. Is this true?
Also, I sent them a “pay for delete” letter in hopes if I pay the debt, they will delete the entire tagline from my credit report(s). What are the chances of this happening?
There are some past instances of debts being sold off again after a settlement was already reached and paid. If that were to happen, it would be by mistake and extremely easy to correct nowadays.
I do not think you have good odds of the pay for delete working with Asset Acceptance. But getting the collection shown as paid and zero balance owed is a gimme.
What are your credit and financing goals over the course of the next 12 months? Do you have other unresolved collection debts showing on your credit reports besides Asset Acceptance?
Sure I am up to it. Let me know what time will work for you tomorrow.
Thanks so much,
Esmeralda
This past Tuesday I explained the situation to Asset and made them an offer of $2,000.00 but they said the least they could take is $5,700 at this time. They told me maybe I could go to a credit union and borrow the money. I did call Citi to ask them when was the last time I made a payment to them and they said it was April 2010. I think you mentioned that the SOL in Texas is 4 years. Would the situation be different had I not paid anything to Asset in the first place.
Your options would likely be more flexible had you never made a payment to Asset Acceptance. But do not dwell on it.
How much closer can you get to their 5700? How much time would it take to raise the money?
I really do not have room right now so it would take me a long time to raise that money. I barely came up with the 2,000.
Right now Assett is saying that my balance is 11,840 but with interest its saying 19,000 and in my credit report it says in collections 19,000. Is it true if I stop paying them that i would really owe them 19,000?
I would like to get a better sense of what is happening with your situation. I do not offer many one on one consultations these days, but I can offer better feedback if we spoke on the phone. I can be available tomorrow or Monday. If you are up to it, we can coordinate a time to talk that works for both of our schedules (I am in Idaho, and on pacific time).
Michael – I forgot to mention the name of the company: New Age Marketing Solutions from Arizona.
With New Age Marketing Solutions gone, and your having already made payments to Asset Acceptance, there is not much else to do but work out the most affordable arrangement possible with Asset.
I think you could explain things patiently, and honestly, to Asset Acceptance, and stand a chance at getting a better deal than the 5700 on the table to settle right now.
What amount of money can you raise? And how long will that take?
Michael – I was naive and thought that i had to eat the charge. I was embarrassed thinking the credit card company would tell me it was my fault for falling for something like this so no I didnt dispute. I have looked and google that company I do see many complaints of others that were taken like me from them, some posted that they asked for their money back and never got anything back so I probably would have not had any luck is my guess.
thanks,
Esmeralda
I live in Texas. My situation is the following I had a Citi card and I had a balance of 1,900.00 when I fell for what I found out later was a scam. This company charged on my Citi card 7,200.00 dollars for services they never provided. It was months later after repeated attempts to get a hold of them that I realized that I had been had. My Citi card monthly payment went from like $60 to $210 dollar which at time i could not afford such a big monthly payment. Being naive I didn’t think I could do anything and with not being able to contact the company anymore since they the telephone number was no longer a valid number. Assett Acceptance collection agency had set up a payment plan of $50 a month back in Jan 2012 last year it went up to $65.00. They offered me a settlement offer of $5,740.00. I stopped paying in Sept 2011 and started paying Assett Acceptance in 2011. They told me that when they acquired my account the balance was $10,875.00 but they are saying that my balance right now is $11,480.00 to settle and if i do not settle by actual amount with accrued interest is $19,377.24. I offered a settlement offer of $2,000.00 to settle by they said they would not be able to take anything less than $5,740.00, which I do not have. I am so close to just letting this debt go and do nothing about it.
Since a few years have gone by since I got scammed and i didn’t know what my recourses were at the time, is there anything else i can do to not pay for something i never received? Also, i have paid Assett Acceptance around $1,500 since 2011 to now and today they are saying it will take $5,740 to settle the debt of $11,480 but they also said when they took it in 2011 it was $10,875.00 i am curious as to why back in 2011 the total was 10K after paying 1500.00 its now 11,480.
Since a few years have gone by since I got scammed and i didn’t know what my re courses were at the time, is there anything else i can do to not pay for something i never received? Also, i have paid Assett Acceptance around $1,500 since 2011 to now and today they are saying it will take $5,740 to settle the debt of $11,480 but they also said when they took it in 2011 it was $10,875.00 i am curious as to why back in 2011 the total was 10K after paying 1500.00 its now 11,480. If I end up letting it go and cannot come up with a settlement with them, what is the worst they can do to me?
Thanks in advance,
Esmeralda
Esmeralda – Did you ever dispute all or a portion of the charges on the Citi card that turned out to be a scam? If so, to whom, and when? What were the results of those disputes or complaints?
I am enrolled in a credit repair program. I had an issue with an old account with Dell computer in which I had an unpaid balance. Dell is no.longer coming up in my report however a new collection agency has my account now and it is reflecting my credit report. the original debt was from 2002. I live.in texas and statues of limitations has exceeded. the credit repair company mailed a validation letter on my behalf, however it has been over 45 days with no response from the collection agency. I called Dell requesting records of last acivity and they state they no longer have access to records. what can I do to get this off my report as they have not responded to my certified letter with the request of validation nor have I recieved anything from asset acceptance? Can they file a suit against me? I am.worried because I am in the middle of getting into a home and I’m still working with the credit repair company as my loan is in the underwriting process.
What does the credit report you are looking at say is the estimated time for the Asset Acceptance collection entry to remain on the credit report?
What is the balance owed?
If you cannot get it removed in time to accomplish your home loan goals, what amount of money can you pull together to offer as a settlement?
Hello Michael, I am contacting you in trying to get some legal advice. I am all over the place but ill try to explain my situation as best as I can. So in 2008, I had to relocate to another city due to educational reasons and hiked up a bank of American credit card. Although I was making the monthly minimum, my credit never went down due to interest rates and a program that was suppose to help me. After a while, I stopped the payments because I felt like I was getting nowhere and was only working part time due to going to school. After a while, I got creditor after creditor calling me, sending things in the mail, etc. At the end of last year, I got served with some papers saying that asset acceptance, llc was suing for an amount I know I didn’t spend. In the beginning, I believed I owed 1,900 and some change. But asset acceptance is saying I owe close to 3,300! I tried seeking advice at a local law library and they told me to let the company go to court and wait until I hear from them. So, just recently I received an envelope from my director at work and it is some kind of garnishing papers. I have wanted to settle this debt for the last couple of years now. Waiting until the debt was low enough for me to get rid of, but this one seems different. I want to call and see if they could settle for half or more, but I’m afraid. I am easily intimidated and don’t want to feel bullied into anything.
should I call to see if they would settle? should I write a letter saying this? can I hire someone to help me with this situation; any references?
lashanna – With the garnishment already being instigated, calling Asset Acceptance to negotiate a settlement could mean paying a premium over what would have been available just a few weeks ago, or the amount you could settle for if you meet garnishment exemptions due to income limits.
Before you call Asset Acceptance yourself to negotiate, or hire someone to resolve this for you, what amount of money can you come up with? Can you pool together half, more than that?
I can come up with about half. I also just realized that they have started deducting from my paycheck. How can I go about hiring someone? Should I send in an exemption form stating my status (I work but help my mother out with her rent and bills; and I don’t really have a place to stay in the city I’m working so I have been renting expensive weekly rooms just to work)?
lashanna – Now that the garnishment is started, you will want to request a hearing from the court about exemptions you qualify for, if any. Until you establish full or partial exemptions, or leave your job, settling with a judgment creditor will not be at much, if any savings. How much was garnished from your check?
They are taking 25% of my paycheck. I have tried to fax a hardship letter to the garnishing unit that is associated with my case, but they told me that it’s nothing they can personally do.
Asset Acceptance being the ones garnishing you are not going to go out of their way to help you. You will want to contact the court clerk where the judgment is entered. Ask about what steps you can take to get a hearing to contest the garnishment, and show any hardship the amount being taken (even if it is all of the amount) is creating.
Hello, I have been served papers that Asset Acceptance is suing me for a very old, charged off debt. I have the intent of answering the suit, however, I can not find any instructions on how to respond. There was nothing included in the papers to complete and send back. I have no intention of settling with them. They are not the original creditor and I do not owe them anything. I am concerned about the amount of time remaining to answer. I did receive a copy in the mail after one set of papers werenleft in my front door. They included a credit card statement from the old account. They also included a copy of a statement of another person. I don’t have the money to pay for an attorney. The suit is for $1800. I know you are not able to give me any legal advice but would you be able to point me in the right direction to find out how I go about answering the summons? Any help would be much appreciated. Thank you very much!
Andrea – Do you receive any state or federal benefits, or currently receive limited income? You may qualify for legal help from a low income legal aid office. You can also look to local law school programs that have faculty/student clinics that help out their communities with issues like this.
Thanks for the quick reply! I don’t receive any government assistance and I am employed full time. I am a single parent and I have a son. We are making it on my income, but just barely, hense no extra money to hire an atty. I think I have decided to head down to the court house tomorrow to see if I can at least file an answer so they know I have no intention of paying them anything. I think I might also try contacting the local bar association, i believe they also had a program that might help me. Reading some of the questions and answers on this site has been helpful. I appreciate what you do!!
I am also in a similar situation. I was contacted by the Friedman law offices stating that they were representing Asset Acceptance on a Dell Financial Debt that is over 5 years old, I live in CA. I called them to verify the debt but got no response. My husband called me this morning stating that someone dropped off papers stating that I am being sued by them. Thoughts?
Ivy – You should request a debt be verified by sending a written request if something like this were to come up again. Was it over 5 years since you last made a payment to anyone on this account?
I was sued by Asset Acceptance in 2011 and the case was dimissed 9/23/2011 in Florida court ; and now 28 April 2013 I find my Bank acct. has been garnished by Fulton Friedman Gullace who represents Asset Acceptance; but they told my bank the garnishment was on behalf a Citi Bank. I have NO judgements listed in Fl. nor any other state to my knowledge. How can they collect on a debt that was dismissed by the court? From what I have found this Law firm has some shady activities. I have not recieved any documentation from the lawyers as of yet. Should I contact my State Attorney’s Office in this matter? THANK YOU IN ADVANCE
debbie – Have you looked up the court record for the Asset Acceptance Corp lawsuit for any new activity? Have you searched the court records for additional cases involving you?
I would check the court records first. Post an update with what you find there.
You can also call Fultan Friedman Gullace and see what they say about the bank levy. Post an update with what you learn from them.
Yes, you should always look to contact consumer protection departments in your state, even at a federal level. It is usually better to be armed with all of the facts before you do, so that your communications are as detailed as possible. You will get better more meaningful results that way.
I found nothing in the state records of a judgement; but the clerk at the office where the suite was dismissed found that the lawyers had refiled the same case in another county which apparrently was accepted. I am awaiting a copy of the court paper. I was never served a summons to appear but I’ve been told this law firm has away arround that.
Debbie – Do you now live, or have you lived in, the county where Fulton Friedman Gullace refiled the previously dismissed lawsuit? Has your address changed since the other lawsuit was dismissed? Were you served at your current address for the lawsuit that was dismissed?
My address has been the same since the 1980’s; which is serviced by the Post Office in Volusia Co where the first case was heard; and where I was served the first time. This new case was filed in the actual county wear I live and was not served. The first case was dismissed by the arbitrator because Goodyear damaged my engine by faulty repair and I had to by a new vehicle; this service and contract was signed & performed in Volusia Co. which where it was dismissed.
debbie – It would be a good idea to connect with a consumer attorney with experience in this type of thing for a free initial consult. With you living at the same address, and the law firm Asset Acceptance hired knowing that, but then not serving you, I would want to pursue unwinding this judgment.
Post the name of the nearest larger city nearby if you would like me to email you contact info for a few attorneys that have experience with something like this.
Deland Fl Daytona beach Fl
The following comment was submitted as a reader question from Danny:
“Hello and thank you for taking the time to answer my questions.
My situation: I am being sued, and was served about 10 days ago. The amount I owe is $3160. I would prefer to settle this out of court. The original creditor was Dell financial services/CIT online bank. The plaintiff is Assets Acceptance, LLC and their attorneys are part of Fulton, Friedman & Gullace, LLP What would be a realistic settlement amount?
What would be a reasonable settlement amount? Should I file an answer even though I will attempt to settle?”
Danny – Settling with Asset Acceptance LLC can often be done around the 50% mark without there being a lawsuit filed. Settling with them after a lawsuit can mean having to come up with more, but not always. Often enough, settling with a debt buyer who is suing you is better done after you have filed an answer to the complaint. About 95% of these types of collection suits go unanswered or unchallenged by the consumer being sued. You separate yourself as someone who is not just gonna roll over, or ignore the issue, by filing an answer to the Asset Acceptance lawsuit, and taking a good defensible position. I would recommend you consult with an experienced collection defense attorney about this.
If all you are looking to do is settle and avoid all of that, what amount of money can you come up with quickly?
Hello and thanks again for your time. Well I Can come up with around $1600 by the 9th of April with is when I get paid(I get paid once a month) and I can borrow around $200 from family members. Is $1700 a bit low? Will they try to push it up to $2000? Is a payment plan a better option? E.g 4 payments of $450 or something like it.
Danny – Get in touch with the Fulton, Friedman & Gullace, LLP and let them know you are considering your options and will likely consult with a collection defense attorney, but you are curious before doing so if the matter can be resolved for 1700.00. I think the collection attorney firm for Asset Acceptance will decline that amount to settle at first. They may change their tune if you filed a well prepared answer to their complaint.
I am not a fan of payment plans when you are being sued. It often means you leave the impression you can come up with the 450 a month until the full amount is paid, even though you are having to borrow to make it work. It usually also means (because there is already a court action), signing off on a stipulation or consent to judgment.
Post what you learn in a comment reply and lets go from there.
Michael –
I was just served papers this morning by the same attorney for Asset Acceptance LLC for a debt to Dell Financial Services for 1916.48. I would like to settle the debt for as little as possible prior to having to show up to court. I will call the attorney and ask to settle but when you say “file a well prepared answer to their complaint”, I am confused. Do I do that only in the event they refuse to settle? Is my only option then going to court? It seems like too small an amount to hire an attorney to defend the suit. Please help
Ginny – Settling smaller balances can mean comparing the economy of time and your approach. Spending even a few hundred dollars to defend the suit in order to get it settled for a better amount is money that could have funded the settlement. When you call to negotiate with the attorney Asset Acceptance placed the account with, a realistic target will be between 60 an 80%. If they can see other creditors are being paid on time via your credit report, they may not be as open to reducing the balance in a lump sum settlement.
Yes, filing an answer would be a good idea if you cannot settle. And you will certainly want to participate in the court process until you work out the settlement, in order to avoid any judgment.
Make the call and post an update of that experience. I can offer more feedback from there.
Hi Michael –
Thanks for your help thus far. I want to make sure I do this right so that a judgment does not show up on my credit or with the courts. I called the attorney for Asset Acceptance and offered 60%. The attorney said that was too low but they would accept 1,500.00. I agreed to that amount. Now I want to make sure I follow the right procedure from here. He said if I made the payment then he would send a stipulation agreement for our records and one to sign and file with the courts. I asked to see the settlement agreement prior to sending the money and he said he would fax me the settlement letter after receiving payment and that we would sign the letter. That would bring the account to zero balance. He then said the support MAY (since the lawsuit has been filed and we have a court date) send a Stipulation Agreement in which their attorney would sign and then I would sign and would be filed with the court to stop the lawsuit.
Michael – I don’t want to end up paying twice because this attorney is not giving me all of the information. How do I make sure that once I pay the settlement amount that the lawsuit goes away and I don’t have to show up to court?
Ginny – Are you agreeing to make the payment in one lump sum, or over a series of months?
Michael –
I agreed to the lump sum because he said if I picked payments I would have to pay the full amount and I would still have to go to court because the payments would go past the court date.
Thanks Ginny. My issue is the words used in your comment. A stipulation agreement usually outlines an agreement to judgment and is used when there are payment plans. If you were to receive an agreement to dismiss the suit upon timely payment of the amount agreed, that would sound about right. I do not understand the “MAY” part of dismissing the lawsuit. Your agreement and payment is for the express purpose of dismissing the suit.
I want to be clear about what has transpired so far before offering more feedback. If you are up to it, send me an email in reply to this comment notification you get. We can correspond through email and set up a time to talk on the phone.
The following was submitted as a reader question. I am posting this as a comment followed by my reply in order to consolidate similar content.
“I was recetly served a summons on a 5 year old debt in the state of tennessee bought by asset acceptance. It is for 3300. The account has been closed for several years and shows as a charge off on my credit report. Is it more reasonable to call and try to settle this debt or to fight it?”
Fighting off a debt buyer collection lawsuit takes a large commitment of your personal time if you are going to answer the complaint and defend the suit yourself. If you hire an experienced debt collection defense attorney, it will be a financial commitment. Choosing to settle with Asset Acceptance instead of fighting the suit can also be measured in time and dollars. Lets say you can settle the debt Asset Acceptance Corp bought and is suing you for at 60%. That will run about 2k. If you hire an experienced attorney the cost could run that high, but it might be significantly less.
If it were me in your shoes, I would first consult with an attorney who defends against this type of suit (who probably already has experience defending against Asset Acceptance Corp and the attorney Asset hired). Find out what the cost for their assistance in defending the collection suit are, and then make my decision based on that information. If you would like for me to email contact info to you for the type of attorney you should look to consult with, let me know the name of a larger nearby city with a comment reply.
Thanks Michael. No it’s perfectly ok. I still plan to call Asset to settle. I want to avoid the court thing to be honest and put this behind me as fast as I possibly can. That just threw me off, but I realize those questions won’t matter if Asset will take my offer…. Either way I will try and just get this paid off and move on! You’ve been wonderful!
Hello Michael! I have been served with the legal docs for the citation against me. There is a page with a series of questions that I am to answer and mail back to them with my written response. Most of the questions are asking do I admit I owe this debt to the plaintiff. I was going to put “I never owed Asset anything and they never sent me any letters about the above debt… but I do agree that yes Citiback is who I owed debt to. Is that okay? I wanted to be careful and not get tricked into saying yes to everything and have them use it against me. Thanks!
Jo – I cannot give you legal advice. Yes, you do need to respond to the Asset Acceptance lawsuit, as it would likely provide the best opportunity to settle, though reaching out now to settle for a reasonable amount is still an option. Answering the complaint establishes that you are not one of the 90 plus percent who get sued and do not respond, or respond poorly, which result in default and summary judgments.
Post a reply and let me know if you would like me to send you some contact info for an experienced debt collection defense attorney nearest you. Working with an attorney has a cost, but I have seen many of this type of debt buyer case defeated by experienced attorneys, or settled for a much lower rate than typically targeted. The balance that Asset Acceptance is collecting on is high enough where working with an attorney to accomplish your goals makes sense.
Well you see this is why I am glad I stopped by here because I have learned about an alternative solution or solutions that I didn’t know existed. Thanks again. I will be working out a plan soon and will follow-up. 🙂 -jo
Hello! Interesting how I read in some places online that calling them was not a good idea. I guess maybe some people do or say things that ruins their case. Iam going to trust your advice on this and do it the way you suggested. I will continue to refer back to this site for your expertise. Thank you so much!!! I appreciate the post you’ve opened up here to help folks in the future too.
kind regards,
jo
Jo – I know what you mean. There are many different opinions out there. It is hard to know the perspective of the person providing their feedback. Someone may have wrote in rather than call to settle a debt and had a great result. But their perspective was one of only having the one debt, and the one letter writing experience, and may have been used to resolve a debt that was uniquely situated to a letter. But letter writing in general, as an attempt to settle a debt, like with Asset Acceptance, become ill advised nearly a decade ago.
One of the reasons I started posting to other debt related sites and joined as a member in some discussion forums was to add my voice to situations just like what you have observed.
When it comes to saying something to shoot your settlement efforts in the foot, there is not much to it. The facts of a situation for someone who cannot afford to pay a debt do not change in the span of a conversation. There is an amount owed, an ability to come up with something less than what is owed in order to settle the debt, and a willingness to accept the offer on the part of a debt owner like Asset Acceptance. A short conversation about this where you may take the time to briefly describe the financial hardship you have that supports them accepting less than the balance owed, followed by working out a settlement number, and then requesting a written settlement agreement be sent – can be done in less than 5 minutes. There are times where approval is needed, so a follow up call. There are times where an offer you make to settle is just too low to be accepted at that time. You can time your efforts for another call the next month, about 4 to 7 days before month end. There are times where what you can afford to pay as a settlement will be too low and never accepted.
None of that changes between writing a letter or speaking about it on the phone.
Now, if a debt collector is on the other end of the phone probing for more financial details, like what do you make, what kind of tax refund do you normally receive etc., than people just need to be on their tows enough to know not to go into any more detail than is necessary to get the settlement offer in and keep the conversation limited to “This is the amount of money I can get my hands on if the offer is accepted” and leave it at that.
I look forward to your updates.
Hello Michael!
This is Joleen. Wow where to begin! First let me say thank you so much.
Your advice is not only the best I have received, but the most informative. I appreciate the time you put in to break down each possible option I have here. And I am sure this will help those in a similar situation!
I think I will start with the 40% to settle. That way like you said I have room to aim higher if they come back with a big no. I will have to hire an attorney if they refuse to settle, but I am hoping it won’t come to that. Big attorney costs on top of owing Asset will probably be too overwhelming for me. I might consider filing for bankruptcy. I mean $1800 VS paying the full debt plus attorney fees? The notices sent to me in the mail had some figures that were around $1000 for attorney, but perhaps they aren’t giving me the full spiel in order to get in on a consultation. And if I did settle with an attorney I still don’t know how good of a case I have with the overwhelming evidence that yes this is my debt.
I will be rereading this over the next few days so that way I make sure I am smart when sending my letter to them in hopes to settle. Is it still okay to mention when I write them that I am aware that they filed since I have not gotten any court docs yet? I guess it wouldn’t matter because the debt will not go away not matter what unless I act and do my best to decrease it!
You are welcome Joleen.
You mention writing to them. I would suggest instigating your communications with a phone call. Our members over the years, and us as professionals working for our members, have often been able to come to an agreement to resolve debts such as yours with Asset Acceptance in one or two phone calls. Anything in writing is to formalize the deal and allow for payment to be made.
Bringing up the fact they filed suit, but have not served you yet, wont change your ability to pay, or consideration for bankruptcy as an alternative. It is up to you whether to bring it up.
It would be great if you post follow up comments here with your progress and decisions, or additional questions and concerns.