Charged off Discover card- need advice

[joeyb5980]

What is the name of your state? WV

Hi, I had a discover card charge off about a month ago- had the card for about 4 years- always made payments- even paid it off in full once (when it was maxed out). This is the 3rd card I have had charge off in the last two months- this one being the most $$. The balance is $3,200. I have just been overextended and behind on all my bills. Anyway, it is now with a collection agency called Encore, and they have offered a settlement of $1,200 which I know is good, but I can't pay that, or I could pay the monthly payment. Anyway, I told them that I could pay the settlement in February when I get my income tax return, but not until then. They said I could set up payments of $50 per month starting with Nov. 30, and then when I had enough $$ in February I could settle then. I have not received anything in the mail from this company although they claim to have sent me a letter. I asked for validation of the debt, and they told me to "call 1-800-DISCOVER, and they will tell you to talk to us." She also told my wife that my wages WOULD be garnished and my wife responded by telling her that thanks to the FDCPA, it is unlawful for her to even threaten that without making it clear that they can only do that if a judgement is obtained. Anyway for the most part they have been nice, and there is no doubt that they are collecting for Discover. They will NOT accept any form of payment though, except a check by phone, and I told her I wasn't comfortable giving her my account and routing information. Looks like there is no other choice. Sorry to write a novel, anyway, do you think I should set up the $50 payments till Feb then? Is Discover likely to sue?? My credit rating sucks... We have considered bankruptcy but are trying to avoid it. Thank you so much for any advice.

 

[joeyb5980]

Me again

I guess since noone has advised not to, I will go ahead and pay them $50 each month until I can afford to settle- should I ask for anything in writing? I also wanted to mention that my Chase card that was charged off is with Trauner Cohen & Thomas- total *******s. The amount is $1998. They haven't been very aggressive since we called them on some violations of the FDCPA Does anyone have any experience in dealing with them/ know how likely they are to sue?? Thank you for any replies...

 

[Lisabyday]

Prior to sending any payments, I would strongly suggest that you get written confirmation from the collection agency that your payments will commence on whatever date at the rate of $50 per month until whatever date you are able to make the balloon payment (which I believe you said was February). The confirmation letter needs to point out that you are settling the debt in ful on the account for a total amount of $1,200. Any payments you send them should probably be sent in the form of a money order. You don't want the collection agency to have your checking account information. Some unsavory collection agencies have been known to run payments for amounts that you have not authorized. I hope this helps.

 

[Ladynred]

Discover is VERY aggressive in suing and for almost any amount. So I would be VERY careful that you don't goad this lion in his den !! Do not send anything to the collection agency unless you get something IN WRITING and NEVER give them access to your bank account !!! They will ALWAYS say they can't take payments, but if you send them a check, it will get cashed. Oh yes.. do NOT send personal checks - send them money orders or cashiers checks.

 

[Logrus777]

Absolutely agree with Ladynred.
No personal checks!!! Period!
Start paying when you get something in writing from the bill collector, no sooner.

 

[joeyb5980]

Thank you guys so much for the advice!

She said that if I didn't pay by Nov. 30 that it would go back to Discover and they would take legal action, but I am going to tell her that I will make the payments and settle, but NOT until I have something in writing- and they will only be getting a money order Is there anything in particular that I should request/demand be in the written agreement? Anything about my credit report, etc.? Thanks again sooo much!!!

 

[joeyb5980]

Update:

Okay, well I just spoke with the lady at Encore again. Discover has approved a settlement of 30% of the balance (only $1146- entire balance is $3820) but I cannot come up with that amount until Feb (income tax return). I told her I wanted to pay the $50/month for them to hold the account and then pay the rest of the settlement in Feb. They won't do this. She said the $50 would just hold the account with their agency and would come off the entire balance, and then in Feb. I could settle for 50% of the remaining balance. The 30% offer is only good Nov. and Dec. She won't send me anything in writing except for a letter stating they are collecting for Discover- nothing showing the payment plan. She said once I had the funds to settle, they would send me a letter stating the settlement amount woud pay in full. But nothing for the $50 payments. If I don't send a moneygram or money order to them by Nov. 30, she said Discover COULD recall the account and pursue a civil suit, or it could remain with Encore for another month- she doesn't know. This is the first month it has been with this company, and this is the first company Discover has given it to. I would like to play hardball with them, but I am thinking 30% is a pretty darn good offer- I just wish I had it. What do you guys think?? I should go ahead and send them the $50 monthly and then settle in Feb?? Thank you in advance for any advice.