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Home > Reader Questions > Should I Settle a Debt The Creditor Has Not Proven I Owe? – Peter

Should I Settle a Debt The Creditor Has Not Proven I Owe? – Peter

I have a collection agency – Palisades- that wants me to pay about 28,000 in CC debt. They are oferring me a 40% discount.

Should I take the 40% disc. or not? They have not been able to produce a credit card agreement with my signture on it. They have only shown me statements. Can they still sue me? Will it hold up in court?

Any help would be great – Peter

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  • Doyle Brueckner

    It depends on several things… What are your goals? Is this debt yours? How old is the debt? As far as the 40% off, this isn’t a real good settlement offer, I think you could do much better. Especially since this is not the original creditor.

    I would be happy to discuss your situation more in detail if you would like. I run a no upfront fee settlement company. My number is 970-946-6942.

  • Doyle Brueckner

    It depends on several things… What are your goals? Is this debt yours? How old is the debt? As far as the 40% off, this isn’t a real good settlement offer, I think you could do much better. Especially since this is not the original creditor.

    I would be happy to discuss your situation more in detail if you would like. I run a no upfront fee settlement company. My number is XXXXXXXXXXX.

  • Damon Day

    Hello peter

    As far as whether our not you should settle the debt, i don’t know enough about your situation to tell you one way or another. Regarding whether or not they can sue without a signed agreement, the answer is yes. As to whether or not they will win the suit, the answer is probably. Every state has different rules of evidence, but the reality is credit card suits are often rubber stamped through the system and heavily lean for the creditor.

  • http://DamonDay.com Damon Day

    Hello peterAs far as whether our not you should settle the debt, i don’t know enough about your situation to tell you one way or another. Regarding whether or not they can sue without a signed agreement, the answer is yes. As to whether or not they will win the suit, the answer is probably. Every state has different rules of evidence, but the reality is credit card suits are often rubber stamped through the system and heavily lean for the creditor.

  • Robertplattbell

    A recent article about debt collectors in the New Yorker talks about the industry. Buffalo, New York, apparently has the largest number of debt collectors, per capita, in the nation.

    One issue they raised was that some debts are fraudulently “sold” off to multiple debt collectors, such that you pay off one collector, and then another surfaces, claiming to own the debt. This is, of course, illegal.

    And they also noted that some debtors fail to get documentation that they paid off a debt, so they end up having to pay over and over again to different collectors.

    They should have some paperwork indicating that they purchased the debt, and should be able to show it to you. Have you called the credit card company? What do they say? Perhaps they can tell you who they sold the debt to.

    Also, if you do pay them, make sure to get paperwork showing the debt was satisfied, or you’ll end up doing it all over again.

    Fraudulent debt collection is an interesting industry. I received a robo-call from a “law firm” in the Carolinas or something a few years back, saying that I had an uncollected debt and to call a certain phone number.

    Robo-calls like that are, of course, illegal, so you could see where it was going.

    I called them and they tried to convince me that I had some debt that I had “forgot about” and owed them $275 or some such nonsense. Nice Try. Apparently, this ruse works, as some people are so afraid of authority figures that they will just pay the first person who claims they owe them money.

    I Googled their name and came up with hundreds of hits from people who were snookered by these folks. Some people, believe it or not, said “I didn’t remember incurring that debt, but I paid it anyway.” Can you believe that?

    I would ask for more documentation before sending them any money – talk with them in person. And bear in mind that even if it is legitimate, they probably paid less than 40 cents on the dollar for the debt, so you may be able to talk them down even further.

    You have a right to be skeptical about debt collectors. The sorts of people who get into that business are often shady characters, and many of them often cross the line. There is a LOT of abuse in the industry.

    So verify, then negotiate, and get documentation. But don’t just hand over money to a stranger because he claims you owe it to him.

    As for the legal issues, talk to an attorney, perhaps there is a legal aid society in your area.

    Good Luck.

    P.S. – link to the New Yorker article at:

    http://www.newyorker.com/repor

    It requires a subscription to read online. You should be able to read the whole article at your local library. Fascinating reading!

  • Robertplattbell

    A recent article about debt collectors in the New Yorker talks about the industry. Buffalo, New York, apparently has the largest number of debt collectors, per capita, in the nation.

    One issue they raised was that some debts are fraudulently “sold” off to multiple debt collectors, such that you pay off one collector, and then another surfaces, claiming to own the debt. This is, of course, illegal.

    And they also noted that some debtors fail to get documentation that they paid off a debt, so they end up having to pay over and over again to different collectors.

    They should have some paperwork indicating that they purchased the debt, and should be able to show it to you. Have you called the credit card company? What do they say? Perhaps they can tell you who they sold the debt to.

    Also, if you do pay them, make sure to get paperwork showing the debt was satisfied, or you’ll end up doing it all over again.

    Fraudulent debt collection is an interesting industry. I received a robo-call from a “law firm” in the Carolinas or something a few years back, saying that I had an uncollected debt and to call a certain phone number.

    Robo-calls like that are, of course, illegal, so you could see where it was going.

    I called them and they tried to convince me that I had some debt that I had “forgot about” and owed them $275 or some such nonsense. Nice Try. Apparently, this ruse works, as some people are so afraid of authority figures that they will just pay the first person who claims they owe them money.

    I Googled their name and came up with hundreds of hits from people who were snookered by these folks. Some people, believe it or not, said “I didn’t remember incurring that debt, but I paid it anyway.” Can you believe that?

    I would ask for more documentation before sending them any money – talk with them in person. And bear in mind that even if it is legitimate, they probably paid less than 40 cents on the dollar for the debt, so you may be able to talk them down even further.

    You have a right to be skeptical about debt collectors. The sorts of people who get into that business are often shady characters, and many of them often cross the line. There is a LOT of abuse in the industry.

    So verify, then negotiate, and get documentation. But don’t just hand over money to a stranger because he claims you owe it to him.

    As for the legal issues, talk to an attorney, perhaps there is a legal aid society in your area.

    Good Luck.

    P.S. – link to the New Yorker article at:

    http://www.newyorker.com/reporting/2010/10/11/101011fa_fact_halpern

    It requires a subscription to read online. You should be able to read the whole article at your local library. Fascinating reading!

  • Craigarbour

    Do you have any reason to believe the debt is not yours? If there is any doubt then you should get verification. If the debt is yours, you should attempt to make good on the debt through settlement.

  • Craigarbour

    Do you have any reason to believe the debt is not yours? If there is any doubt then you should get verification. If the debt is yours, you should attempt to make good on the debt through settlement.

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