How to discuss an agreement with the collection agency?
I have a credit card that was with Bank of America. The balance is about of $ 14,000.00 and because of the difficult times I've fallen so far behind. The account is now a collection agency, National Action Financial Services. I wrote and offered to settle the account of $ 2,500.00 is denied. I explained in the letter that BOA was willing to settle for $ 1,500.00, while still had the account but then I was unable to come up with that money in the short period of time they gave me. Can anyone suggest ways to address agency collection and discuss payment of the debt? I really want to do this on my own instead of hiring a debt settlement company.
You have a set of problems with this situation. 1) If B of A fee of $ 14,000 on their books, under IRS regulations must send both the IRS and a 1099C that has to be told by you on your tax return. So watch out for this. 2) NAFS was hired or purchased the debt. They are bound by this law will send a notice written validation of the debt. This is to include the amount owed, the original creditor, any charges that may be added and what evidence they can have done along with the documents that have debt or were hired to collect the debt. They are also required to inform you of your right to dispute the debt and what their rights under the FDCPA. (See source) If they decide to stay, then here is a pattern of what the average prices paid by collection agencies are to purchase debt portfolios. In general, the debts that have recently been accused of: 6-7 cents. Accounts that are a little older and in which a collection agency or two has already taken a hit: 1.5 cents to 2 cents. Years old, outlawed debts: A penny or less. If you agree, try to get a written "payment for disposal" them to withdraw their entry in your credit report. Get in writing signed by its registered agent. However, the original creditor (B of A) will not remove your entry your credit report, you will have to wait for age (7.5 years from the date of last payment was lost with the original creditor). You might want to check to see if this debt has prescribed in your state. Use the following link to find your statute of limitations in the states of credit card debt. If the debt has prescribed, then the collection agency has no right to any civil action through the courts. SI http://www.bcsalliance.com/statute_of_limitations_on_debt.html barred, DO NOT PAY ANY Thus SOL return to debt and then can seek full restitution through a wage garnishment (if allowed in your state). NOTE: This communication is not intended to be or should be construed as legal advice. It is intended solely as a general discussion of legal principles or definitions of FDCPA and FCRA. Always consult a lawyer if necessary.
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