HELP with settling a debt to collections?
Sara asked:
Hello, I co-signed on an ex-boyfriends truck (stupid, I know) and he never ended up making payments. I have been receiving calls from a company called Syncom and they are willing to negotiate a settlement to help repair my credit. The balance is $4700, but they sent me a fax that said if I pay $1400, they will settle this and report it to all three credit bureaus. Has anyone else been through this-does it help out your credit a lot? Any info would be greatly appreciated!
Thanks, so far. His truck was repossessed, and this was only 4 years ago. I am looking to buy a home with my now husband, and my credit score is so poor because of this. What they sent me in writing (by fax) is that “Upon receipt of the settlement, which is $1400, our client will inform the Credit Reporting Agencies that the account has been settled in full”. I really want to work on fixing my score and I feel like this is the best option, so I don’t have to wait the 7 years.
Charlie
Hello, I co-signed on an ex-boyfriends truck (stupid, I know) and he never ended up making payments. I have been receiving calls from a company called Syncom and they are willing to negotiate a settlement to help repair my credit. The balance is $4700, but they sent me a fax that said if I pay $1400, they will settle this and report it to all three credit bureaus. Has anyone else been through this-does it help out your credit a lot? Any info would be greatly appreciated!
Thanks, so far. His truck was repossessed, and this was only 4 years ago. I am looking to buy a home with my now husband, and my credit score is so poor because of this. What they sent me in writing (by fax) is that “Upon receipt of the settlement, which is $1400, our client will inform the Credit Reporting Agencies that the account has been settled in full”. I really want to work on fixing my score and I feel like this is the best option, so I don’t have to wait the 7 years.
Charlie
Sue
Was your ex-boyfriends truck repo’d and how old is this debt? If it was…the repo notation will stay on your credit report for 7 years…regardless of whether the account is paid in full or not paid at all. It will state paid/settled…which looks better overall…but in terms of your credit score, it won’t make much of a difference.
If you pay this, offer to settle @ $300 and go from there..
- Get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. This letter should state the settlement amount and that the account will be settled/paid in full upon receipt of this amount from you. Never accept settlement deals over the phone that are not backed up in written terms. If you don’t, the debt collectors will deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money from you.
- NEVER give out your checking account/bank routing numbers to debt collectors for making electronic debit payments. Pay only via USPS money order. Photocopy and keep in your permanent records along with the settlement letter.
Jessica
First of all, co-signing isn’t stupid, it just shows that you trusted him. Secondly, if the loan is over the statute of limitations in your state, (7-10 years in most states) just tell the debt collector to stop calling you, and deny the debt.
If you’re still within the SOL, and you do wish to restore your credit, make sure than anything you agree to is IN WRITING. Make sure they send you a letter stating that the account will be removed from your credit report as soon as it’s paid in full. I have seen a lot of debt collectors try to collect debts more than once, even after it was paid.
A lot of times you can negotiate with debt collection agencies, including payment arrangements, and full settlements.
On a side note, NEVER pay any company for “Credit repair.” It’s bogus.
Robin
Ok what the other two people didn’t tell you was that when you settle an account if you settle for anything over 600.00 which you will be in this case you will be sent a 1099 for 3300.00 that you will have to file on your taxes it will be considered extra income. You might have to pay back money to the irs when you file your taxes. Also if you settle any other accounts that 600.00 is for everything you settle. Also settling looks almost as bad as a bankruptcy but it’s better than file for bankruptcy.
Lydia
First of all, this sounds like they purchased an old debt portfolio.
If he had missed payments, the vehicle would have been repressed and they would have sued him in court to obtain a wage garnishment (if allowed in your state) for the remain balance of the debt. If they could not collect from him due to being unemployed or just his ignoring them, they would then take you to court to seek a judgment to make you pay since you co-signed.
If you have not been served papers, then this collection agency is just trying to make a buck.
Since they are offering such a low settlement amount then no doubt this debt is way past your states statute of limitation. Check your states SOL at the following site
If this debt (written contract) is time barred, DO NOT PAY ANYTHING as that will reset the state SOL and then you would have no defense if they did take you to court to collect.
If the debt is not time barred, then they must under the FDCPA send you in writing a collection notice and it must include specific information and what your rights are. It also informs you that you have a right to dispute the debt and request validation that they legally own the debt.
So for the time being, make them prove you have to pay it.
Even if you paid in settlement, it will still be reported as a derogatory on your credit report and keep your score low for a period of 7 1/2 yrs from the date he last missed his payment. (see source)
NOTE: This communication is not intended as or should be interpreted as legal advice. It is intended solely as a general discussion of legal principles or definitions of the FDCPA and FCRA. Always consult an attorney if needed.
Marjorie
Right now it is showing as an uncollected debt on your credit.
That not only looks like you don’t pay your bills but can stop you from getting another loan in the future if you need it. It can also stop you from being approved for a credit card or being able to open accounts for something as simple as a cell phone in your name.
So yes, it would be better to pay the $1400 to settle and get it turned in as paid than to not. Although it will still show up on the credit report that you settled on a loan instead of paying in full.
Why are they hounding you and willing to settle with you instead of your stupid ex-boyfriend. The debt is actually his.
I would take him to court and get my money back. Or make him give me the truck.
Peter
How long has it been since the truck was repossessed? Automobile repossions fall under the UCC. The statute of limtation under UCC is 4 years. If it has been longer than four years, you no longer have a legal obligation to pay.