Please look at my settlement offer letter, I think something is up with it, no joke

[Shell6974]

Please take a look at this settlement letter because I do not think it is legit. I have settle with two previous companies and both of thier letters have stated that the account will be settled in full and this one does not. It is from URS.

March 2, 2012



My name United Recovery Systems
My address PO Box 722929
My address Houston, TX 77272-2929
888-793-6186

SETTLEMENT!!!!!!!!

Our client has agreed to accept your offer of payment(s) totaling $2800.00 as settlement for monies owing on your account. Please make your check or money order payable to our client. The terms of the agreement are:

Date Amount
3/06/2012 $2800.00


This settlement off is void if the agreed payments are not made as stated above.

Chase Bank USA is required by the IRS to provide information about certain amounts that are discharged as result of a cancellation of a debt on a form 1099c. If Chase Bank USA is required to notify the IRS, you will recieve a copy of the form 1099C that is filed with the IRS.

Any payments or credits in excess of the agreed settlement amount will be applied against the account's outstanding balance.

This communication is from a debt collector. We are required to inform you that this is an attempt to collect a debt, and any information obtained will be used for this purpose.

Sincerely,

Cheresse K Blount
888-793-6186 ext 4448



Now the money will not come out of my account until the 6th, but I am prepared to cancel the check I gave them or go and withdraw every penny out of my bank account if they do not email or fax me another letter stating it is settled in full. Now she did tell me that is was settled in full over the phone, but I want it in writing. I am going to take this letter to a Consumer Credit Counseling Service in the morning and let them check it out. Look this is the 3rd collections agency I have settled with and the other two letters state that the settlement is in full and this one doesnt. What do you think.

[justbroke]

I would make sure that it is in writing (period). The following statement which follows is VERY scary. In essence, it makes it appear as though it is NOT a settlement in full.

payments or credits in excess of the agreed settlement amount will be applied against the account's outstanding balance.

[keepsmiling]

You are smart to be wary.
Just curious, what percent is your offer? How many other accounts still need settlement?
Good luck.

[Shell6974]

They settled for around 33%. They are the lowest settlement yet. I was expecting around 38-40% so that much lower of a number did catch my eye. I am going in the morning and seeing about withdrawing every penny out of my account. But I will give them a call at 8 am on Monday giving them a chance to fax or email me another letter. But this I really think is left open for them trying to recoup the rest of the balance. I will go see CCCServices tommorow.

[shark66]

Not to rain on your parade, but 33% settlement is nothing to write home about.

Are you really certain you want to do this?

Do you have any creditors left if you settle this one?

Good luck to us all.

[keepsmiling]

I am regularly getting offers of about 13%.
Just FYI.

[HHM]

What a waste of $2,800.

[mizg]

I agree that it was a waste...there was a third party collector that was busted for taking the money from people using a the same type of letter...don't trust them..stop payment on that check...quick

[DYLAN150]

I suppose when you settle with one creditor the rest of your creditors will be all over you? They will see the settlement on the credit report correct?

[Shell6974]

Well I did take the letter to two different banks today and both of the bankers I talked to said in their opinion it was legit and that was the "settled" amount. But on Monday morning around 8 I am going to run it by the Consumer Credit Counseling agency.

[malf1204]

And this will reset the Statute of Limitations on the debt.

[justbroke]

Well I did take the letter to two different banks today and both of the bankers I talked to said in their opinion it was legit and that was the "settled" amount. But on Monday morning around 8 I am going to run it by the Consumer Credit Counseling agency.

Why would you ask a bank? That "settlement" letter has all sorts of problems. If a settlement amount is X and you send X+Y... they don't get to keep Y. Sorry, but that letter does not spell out the details properly for a settlement letter.

Personally, I would not settle with that type of agreement in place. A settlement agreement should be very very specific. It should also specifically indicate that it would not be resold It should contain a clause that binds both parties to the agreement including their assigns and successors in interest, to the amount and that it is a final settlement of the debt.

You would think that Chase had better settlement agreements than what is posted here.

[DYLAN150]

Shell: Just wondering how many payments you are behind to Chase?

[Bell30656]

If you decide to reneg on the agreement that you made with the collection agency. For future food for thought, NEVER and I mean NEVER give your banking information to a debt collector. Pay them only by money order or cashier's check if you make an agreement. You need to make certain that you actually STOP PAYMENT on the check. While simply withdrawing the funds may keep them from getting the money, it could also cause you to have an NSF check. In Georgia, that amount is a felony. (OCGA 16-9-20) You could wind up with a new debt of $2800 plus fees if you don't get that STOP PAYMENT in. If your bank is a major bank, you can usually do the stop payment over the phone or internet.

[justbroke]

One caution on the "bad check" laws. Presenting or causing a check to be presented for anything other than "current consideration" or wages, is not a criminal offense in Florida or Georgia. In other words, unless you are issuing a check for payment of something that you are getting in exchange for the check, at the same time (present consideration), there is nothing criminal. I don't know of any State where presenting a check to pay a creditor is criminal. (Although some laws related to gambling and markers seem to make this a criminal offense in that context.)

However, presenting a check and stopping it after presenting it to your local grocery store or other merchant, would be criminal.