Settlement Strategies With JDC's

[I_Suck]

In the past, I have always dealt with the OC or a CA that was retained by the OC. I now find myself in a situation where the OC has written off the debt and sold it to a junk debt collector.

Can I still negotiate a settlement?

Should I include a line in my DV letter I plan to send, something that says....

If after this debt has been properly validated, I will consider settling this debt for 20% of the original value....

Or would putting something like that in the DV letter just assume they can get a lot more out of me?

Are there any good settlement strategies to deal with JDC's and avoid a lawsuit? I really don't want to try to go through this until the SOL runs out.

[AngelinaCatHub]

If the debt was written off does not negate your debt. Sold to another party, it is still due. I assume you are not going to bk, so stalling them is all you can do. However, be careful of what you write them as any action upon this debt will start the SOL back to zero. Even an acknowledgment of the debt could do this. A payment or partial is 100% that the SOL is started over. 'Hub

[I_Suck]

I will probably just leave that off the DV letter that I plan on sending. The DV letter does not have anything about acknowledging the debt.

I guess there is a reason (not sure why) AMEX didn't sue in the last 2 years since defaulting. I am hoping it is the same reason this JDC will also not sue now. Hopefully after receiving my DV letter they will want to entertain a settlement.

[CompTweaker]

Please go visit these sites:

http://www.debtconsolidationcare.com/forums/debtbuyer-myths.html

http://www.creditinfocenter.com/legal/ive-been-sued.shtml

http://www.debtorboards.com/index.php?PHPSESSID=c0965a292d3689c6d241adc00160e642&topic=2365.0

And this site/forum can be your best friend when it comes to dealing with a JDB lawsuit. Pay special attention to the stickys and plan on spending a lot of time reading and understanding things. Also, familiarize yourself with your own state's rules of civil procedure.

http://www.debt-consolidation-credit-repair-service.com/forums/forumdisplay.php?f=177

[I_Suck]

Hmm. I have read that first link before. He is basically saying that DV'ing a debt is a bad thing because it brings your account to attention and you will be more likely sued.

Not sure how I feel about that statement.

[ForumReader]

Ok back with more abbreviation questions--what are:

JDB
JDC

?

Thanks

[backtoschool]

I think it all depends on the JDB on how quickly they will sue you. Asset Acceptance sued me IMMEDIATELY upon buying the debt. And since they bought my debt from the original creditor under a year after charge off, I had no way of riding out the SOL.

Asset Acceptance, as an example buys the debt to settle, and they sue to try to get you to call them and settle. Other JDB's buy the debt with the intention of garnishing paychecks. I did not settle with Asset, (I let them get a judgement and then I filed chapter 7 several months later.) but I have had friends who have settled for as little as 30% with them. Most people I have talked to have settled for the customary 50% with them. They buy the debt as you know for 5% to 10% of its face value.

I think any contact with the JDB raises you to the top of the pile in terms of them trying to shake you down for cash. Remember, a lot of the debt they buy is out of SOL, or totally uncollectable with bad addresses and phone numbers, etc. If you are contactable then you have just risen to the top of the pile, and if you are contactable with a desire to settle then you are in the very top category of people they will shake down in my opinion.

[BigJohn]

Ok back with more abbreviation questions--what are:
JDB
JDC

?

Thanks

JDB means Junk Debt Buyer

JDC means Junk Debt Collector

[BigJohn]

I think it all depends on the JDB on how quickly they will sue you. Asset Acceptance sued me IMMEDIATELY upon buying the debt. And since they bought my debt from the original creditor under a year after charge off, I had no way of riding out the SOL.

Asset Acceptance, as an example buys the debt to settle, and they sue to try to get you to call them and settle. Other JDB's buy the debt with the intention of garnishing paychecks. I did not settle with Asset, (I let them get a judgement and then I filed chapter 7 several months later.) but I have had friends who have settled for as little as 30% with them. Most people I have talked to have settled for the customary 50% with them. They buy the debt as you know for 5% to 10% of its face value.

I think any contact with the JDB raises you to the top of the pile in terms of them trying to shake you down for cash. Remember, a lot of the debt they buy is out of SOL, or totally uncollectable with bad addresses and phone numbers, etc. If you are contactable then you have just risen to the top of the pile, and if you are contactable with a desire to settle then you are in the very top category of people they will shake down in my opinion.

I agree.

I had one JDB (Junk Debt Buyer) calling me asking for somebody else. I am sure they were trying to see if there info they have on me is correct.

They can't contact me directly because of the bankruptcy, but they can call asking for somebody else and see if I will tell them who I am.

Clever on their part in my hunch was correct.

[ForumReader]

JDB means Junk Debt Buyer

JDC means Junk Debt Collector

Great, thanks BigJohn I think I am getting the hang of what these abbreviations on this forum stand for now

[I_Suck]

To me, the SOL clock is really hard to verify. Isn't it a he said/she said kind of thing? Too bad it's not kept track of somewhere.

Given this scenario...

-debtor last payment to OC is in 2007
-debtor last payment to 1st CA in 2008
-debtor did not pay 2nd CA ever
-debtor did not pay 3rd CA ever
-debtor did not pay 4th CA ever
-OC charges off debt and sells to JDB in 2009

According to the JDB and their CA, what is the SOL clock set at? 2008 or 2007?

[optimistic1]

Hmm. I have read that first link before. He is basically saying that DV'ing a debt is a bad thing because it brings your account to attention and you will be more likely sued.

Not sure how I feel about that statement.

In my experience, DV'ing has halted all activity, and all the creditors have done is started to farm out the accounts to new Collection Agencies, to restart the clock so to speak, and start the harrassment again. I just DV again and live life.