Question by knowledge: Should i take a settlement opportuity for a bad debt on my credit report at 75% off the entire balance?
The debt is a checking accout from 2005 where I allowed someone to rent a car in my name using my checking account, and i didn’t receieve the money from the person to deposit into my cheking account. The negative amount is $ 2042.00 and the RJM Acquisition LLC comapny is offering me a settlement of $ 612.87 to settle this account.
Best answer:
Answer by CatDad
It depends on the type of debt and how old this debt is….please clarify. If this is for a charged-off credit card, then you need to understand that paying back in full or settling the account won’t repair your credit…I would offer 25% for an old charged-off account.
The older the debt is, the less you should pay for it. Unless this debt is under a year old, then 75% is too much to pay.
- 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 “paid in full” upon receipt of this amount from you. Keep the letter in a safe place. 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. This is like giving the keys to your front door to a burglar. Once they have this info they can attempt to withdraw any amount from your checking account at any time. Pay only via USPS money orders.
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