Bad Credit Agency

Does one agree to Settlement offer from Collection Agency on existing debt?

There was a credit card chargeoff in 2005 and now the collection agency is willing to offer the settlement below. Any thoughts? ------------------------------------------------ Account Information: Our Client: TBD Client Acct: TBD MRS Acct: TBD Account Balance: $2,600.00 Settlement Amount: $1,000.00 Dear Client, Pursuant to our telephone conversation of Wednesday, April 25, 2007, TBD INC., has been retained to serve as agents on behalf of Pallino TBD INC. Effective immediately, TBD. has been authorized to accept $1,000.00 as settlement in full on the above referenced account if consummated on or before Wednesday, April 25, 2007. Upon receipt of $1,000.00, you will be released of any further obligation to TBD INC regarding the above referenced account. Settlement is to be paid as follows: $1,000.00 is to be sent to the above address on or before Wednesday, April 25, 2007. via Credit Card By Email.

Public Comments

1. What is your question? Get the $1,000 and pay them off! You ran up a bill of 2600. and only have to pay back 1,000. What's not to like about that? Except you never should have made that debt in the first place. This will be on your records a long time and you will not get any other credit for years.
2. Do not pay them anything unless they agree in writing to completely clear your credit report of owing them anything. It should show as being paid in full regardless of what you really paid them.
3. yes make sure you get this agreement in writing stating that the account will be satisfied in full and will be reported as so to the credit agencies. Also since they are comming at you with a settlement offer that is lower than your debt they obviously want something rather than nothing so maybe they are willing to negotiate contact them and tell them that you have $700 and that you can only come up with $700 hundred and are willing to settle the debt for $700. but make sure you have the money because many agencies only will make the offer valid for a set amount of time and get the new offer in writing. They may or may not come down so if they don't you will have to pay the $1000 which already is a nice reduction. Good luck! Many of these companies will negotiate you may get your offer or something in the middle or may just have to pay the 1000. I have had luck negotiating with some companies and none with others but asking is worth saving a few hundred
4. It's a steal! Abide by their demand and have them ensure that your credit report will reflect as fully paid.