Legal Question in Credit and Debt Law in Virginia

Settling A Debt...

What is the correct way to settle this debt? My husband has a debt owed to CACV OF COLORADO for $1394.47, we've been actively paying this debt for a year. In 8/07, it moved to a different law firm, and we having communication issues. We offered a settlement $1150.00 on 9/6/07, week later, it was accepted. We simply wanted written verification of this debt settlement, and the faxes we've received have been incorrect to the terms. Either the balance is monstrously inflated, $2,234.98, two weeks after submitting settlement, or the settlement offer itself is incorrect. We verified during our first phone call the interest accrual is monthly, 6%, so the inflated amount in 2 weeks is unrealistic. When communicating we want the $1394.47 stated as the claim owed, and settle for $1150.00, they (collection reps), respond by saying the balance stated doesn't matter, as long as the settlement offer is correct. Why are they being so difficult? We want to settle this debt, we are able to offer the said amount, but how can they inflate the original amount so grossly? Should we contact CACV? Or send the letter with our stated terms, and then pay? What is the best way of handling this situation? We don't want this to haunt us in the future.

Thx!


Asked on 9/30/07, 2:55 pm

2 Answers from Attorneys
Eugene Policastri Bromberg, Rosenthal, LLP

Re: Settling A Debt...

Send them a letter with your terms and ask that they countersign and once they have signed then you pay.

Read more
Answered on 9/30/07, 9:03 pm
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Settling A Debt...

Send the letter spelling out your terms of settlement with your check to the predatory collector with a copy to CACV. On the front of the check on the memo line, reference the dentifying information for the debt such as name of creditor, loan number, etc.,; on the reverse side under the endorsement line, write in capital letters: PAYMENT IN FULL FOR LOAN REFERENCED ON REVERSE (or something similar).

Read more
Answered on 9/30/07, 9:07 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Virginia