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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Im trying to settle an unsecured account. The company would

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I'm trying to settle an unsecured account. The company would not talk settlement until after 180 days then charged it off and sent it to IBM in India. I
BM says the original company still holds the account and interest is still accruing after charge off. Is this possible. They want me to pay 60%. I'm going to send other letter to the recovery dept offering under 50%. What should I expect?
Hello,

Thank you for your question. My name is Ellen. I will do whatever I can to answer your questions!

When did you last make a payment on this account?
Customer: replied 3 years ago.

May 2013

Thank you for your response Carol

In my experience there are 2 rules of thumb in negotiating collection matters:
1. The longer a debt is outstanding the better the settlement that can be negotiated; and
2. A better settlement can be negotiated when the contact originates from the creditor or creditors collection agent

In the situation you described, the collection matter is fairly new. Typically a collection agent would not extend its best settlement on a new matter. Therefore it may be premature to negotiate at this time. If it were me, I would not make any additional payments on the account and would wait until they make a more reasonable offer – 30 to 40%

Please let me know if you need any clarification. I would be glad to assist you further if I can
Customer: replied 3 years ago.

This creditor is non standard. They say they charged off the acct, but the collection agency said they are part of Key bank. They also say they are continuing to accrue interest. Is that usually the case. I was able to settle another acct, but it was a different company. They immediately offered 39% and I took it. The acct was $5700 last month and now they say it's $5800. I sent a settlement offer last month for $2400 and they called me and offered $3000 to settle. I told them I don't have that and will have to pay other creditors so may even not have that much later. Can I lower my offer this month? This company is strange and the collector said they can't send me any documents and communication must be with the original creditor recovery dept. I can send a written offer and offer less $$, say $2000

Hi Carol

This creditor is non standard. They say they charged off the acct, but the collection agency said they are part of Key bank. They also say they are continuing to accrue interest. Is that usually the case.
Yes typically interest continues to accrue. Also an "inhouse" collection agency is not unusual

I was able to settle another acct, but it was a different company. They immediately offered 39% and I took it.
First offers are not usually the best offers

The acct was $5700 last month and now they say it's $5800. I sent a settlement offer last month for $2400 and they called me and offered $3000 to settle. I told them I don't have that and will have to pay other creditors so may even not have that much later. Can I lower my offer this month?
Yes

This company is strange and the collector said they can't send me any documents and communication must be with the original creditor recovery dept. I can send a written offer and offer less $$, say $2000
Yes

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