Legal Question in Credit and Debt Law in Oklahoma

Debt Collector Settlement Reduction

I wrote to you in Oct 2004 regarding my ex-wife's bankruptcy in 2003. We both signed for her vehicle in Oklahoma in 1999(I now live in Texas), she was awarded the vehicle in the divorce in 2000 then filed bankruptcy which included the car. Her last payment was around Oct 2002. The CA purchased the debt, contacted me to pay $13,500, then reduced it to $5,700 in Oct 2004. I requested proof that I signed the contract, they sent it to me. No contact from them until March 7, 2005. They sent a letter offering me a settlement of $3,480 if paid in full by 4/1/2005 and they would update my account status to ''PAID IN FULL'' or they will be sending it to an agency in my area. They are from New York. The collections is on my credit. Should I try to get it further reduced? I don't have the money; however, I could pay it out over time. Would it be wise for me to negotiate further or continue to wait. They are legitimate because I researched their company and they have been following the laws. If I agree how do I insure they will clear my credit? I would like to buy a home within the next year and this does affect my credit score and the loans I can secure. Thank you for your assistance.


Asked on 3/07/05, 11:07 pm

2 Answers from Attorneys
Sharon Campbell Sharon K. Campbell

Re: Debt Collector Settlement Reduction

First, I recommend that you try to settle this matter. They are offering you a pretty good deal, it appears. As a general principle in negotiating, creditors will accept a lesser amount if it can be paid in a lump sum than if you have to make payments. What is being offered to you is a lump sum payment. If you cannot pay the lump sum, they will not settle for that low of an amount. If you do reach an agreement, make sure it is in writing, including the agreement to report your debt as paid in full. You might even make it a requirement that they send you a copy of the document they send to the credit reporting agency (ies) with the report of "paid in full."

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Answered on 3/08/05, 12:31 pm
Peter Bradie Bradie, Bradie & Bradie

Re: Debt Collector Settlement Reduction

While there are no sure guaranties, the best approach is to get their agreement in writing. Keep negotiating as best you can. They probably bought the claim for pennies on the dollar, so they may be amenable to a time payout, so long as it isn't too long.

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Answered on 3/08/05, 10:21 am


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