~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Here is an example of some of the bad advice you will find on internet message
boards:

Motru makes a sound decision, (IMO) to settle an obligation for 38%.
http://consumers.creditnet.com/stra...8594#post288594
quote:

Originally posted by motru

Hello all, orig debt from loan was $4000, agreed to
settle for $1500 to gain title to car. CA says cannot delete. After I settle, would it
be a good idea to send nutase letter? CA says it will be on CR as "settled" --history of
lates, will this still affect my scores?

Motru describes a situation where it's wise to settle. Settling a $4,000 debt for $1,500 is a
good deal. For one thing, it won't be hanging over her head, so she can move on.
Sometimes however, the CA is belligerent in their refusal to delete in exchange for pmt.
As we've seen, especially recently, they simply will not budge. In these cases I might
suggest we shall have to attempt to FORCE them to delete.

Steps; 1) Open a separate checking account in which you place the amt. you will be paying
and walk out with temporary checks.

Here is the first mistake. Opening that checking account is going to cost money.
Banks want to be paid service charges on their checking accounts in most cases or
it costs on a per check basis. And then using temporary checks with low numbers
isn't a good way to get them accepted anyway.

2) Send them a letter directly to the attention of the lady with whom you made the
agreement. You don't want anyone else scrutinizing this endeavor. Send CRRR (CRRR
means Certified mail, Return Receipt Requested.)of course,
and include 2 checks, (one of which is postdated) each for 50% of the pmt. amt. But the
second check should be postdated for 2 weeks hence. (Since most people get paid every
2 weeks this will make the situation most believable). You do this by dating the check in
the "date" portion as the first check. Both checks should be dated the same in the "date"
portion. But in the "memo" portion or your second check you put; "void until xx/xx/xxxx",
[2 weeks later]. Here is the next dumb trick. Even if you put the future date in the
proper place and mark "void until" above it banks won't pay any attention to it
much less such a notation in the memo column. Many collection agencies would
just go ahead and send them both in at the same time hoping you had enough
money in the account to cover both checks anyway. If that happens and you don't
have enough money in the account you will end up with a NSF charge of up to $40
depending on what your bank charges and since it's a brand new account they are
likely to close it as well. Then they will turn the account over to Telecheck or
Chexsystems or whoever they deal with and you get another bad mark on your
credit rating and you can't open up any more checking accounts until you take care
of the bank's charges. This plan has an awful lot of pit fall in it just like so many of
the "great" ideas one finds on message boards.all over the internet. They sound
good but are usually pure poison.

3) WAIT, until your checks clear.

4) In Motru's case, she wants a CLEAR title to the car and will want to wait until she gets it.
Let's take a look;

1) Open a separate checking account in which you place the amt. you will be paying
Opening a separate account will disallow them from deducting any further monies from your
account without permission.
Quite true but it can run you broke trying to fight off the bounced check charges.
Not good advice at all.

This tactic will necessitate writing personal checks to clear the problem. We can't use
Money Orders. You wouldn't want to anyway. Using MO's implies that you know how
they operate.
So what? Who cares?

Most people pay by check. You don't want to make
yourself "stand out" any more than necessary.

2) Send them a letter and the 2 checks. Include the following language in your letter
verbatum;

Dear Ms. Collector,
Thank you for your willingness to help clear up this misunderstanding. As per your
request I'm enclosing 2 checks which total the full amt. we agreed to upon finalize this
account. The first is cashable now. The second will need to be held for (14 days) until
xx/xx/xxxx, which is when I next get paid.

Sincerely

_________________________

DON'T use the word "postdated". Include the verbiage exactly that way. It can be
construed legally as your having agreed to write a postdated check as per her request.
So what? There is nothing illegal about writing a collection agency a post dated
check. Its done all the time. That's why the courts won't prosecute on a post dated
check. If they accept a post dated check its an automatic admission that its just
another form of agreement to pay later.

3) Be patient. You're getting ready to kick up a fuss. Make sure the debt is completely
resolved before you do. In Motru's case she wants a clear title.
Now the fun part. Unfair practices [15 USC 1692f § 808.] ... the following conduct is a
violation of this section of the FDCPA:
(2) The acceptance by a debt collector from any person of a check or other payment
instrument postdated by more than five days unless such person is notified in
writing of the debt collector's intent to deposit such check or instrument not more
than ten nor less than three business days prior to such deposit.

If you do this, this way, I believe there is a slim chance that they will comply with the law to
the letter.
And if they do comply with the law to the letter then all of this guy's fancy ideas are
out the window and anyone using this sad advice would just be out of luck.

Once the entire account is resolved, and you're SURE you have all your documentation,
you'll be able to file an immediate small claims case for violation of the above section.
So if you follow this yo-yo's advice and go through all that trouble and nonsense the
best you can hope for is a small claims court case at the very best? WOW! You
need that like you need an extra hole in your head.

You're hoping they will either forget or just not bother with sending this reminder notice.
I think if Motru handles herself right and doesn't let on that she knows the law, the CA will
be too busy, lazy, stupid to comply.

As soon as your case is filed it'll be a simple matter of agreeing to drop your suit AFTER
the account is deleted from all 3 reports, with a letter that says they WILL NOT re-report.
Let's try it. :)

Let's just use some common sense and forget this nonsense.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


Creditwrench™ has lots and lots of resources available for you to learn how to
deal with your debt problems and re-establish your credit.
Our website is at http://www.creditwrench.com and we have a message board at
http://pub50.ezboard.com/bcreditwrench as well.

We also offer a great email short course to help you with your problems.
You can take our short course for free simply by sending an email to:
course1@autobot info.com
and you will start getting your lessons by email. There is no cost or obligation and
your privacy will always be respected and will never be given or sold to anyone.