Question about settlement letter from cc company

[captain149]

What is the name of your state (only U.S. law)? Kansas

I have received a settlement letter. Lists the name of the debt collection company. Reference number. acct number for cc. Total Balance due. Below it says.

In an effort to resolve the account, your creditor has authorized our offices to extend a reduced settlement offer on the above balance due. The current settlement offer is outlined below. To accept this settlement offer, please make the initial payment by the date listed bedsides payment 1. This offer is contingent upon timely receipt of all 7 payments.

Reserving the right to negotiate, your creditior will accept the following Payment Installment Settlement:


Payment 1 $$$
Payment 2
etc.

My question is this a legitimate offer? If I accept and send in payment and complete the terms will I be done. The second paragraph concerns me where is says "reserving the right to negotiate,"

I just dont want to send in the payments and then have them come back and want more. I want to know if this is a legitimate offer?

 

[cosine]

If ...

1. You have this written proof of an offer ... and
2. You keep documentation proving you sent the payments in a timely manner ... and
3. This is a legitimate collector with legal standing to collect on this debt

... then paying this should "git 'er done".

Well, almost. They can and probably will send you a 1099-C which represents them "giving" you the difference between what you paid and what they paid (this is what the creditor declares as a loss for tax purposes). You have to pay tax on this amount because it is technically your income. It's as if they gave you a gift for that difference amount and you used it to fully pay off your debt.

If you have a reason to believe the amount they claim as the debt is in error (their collection costs, legal costs, and interest, can be added to the debt), then now is the time to dispute that.

 

[captain149]

Thanks

So the "reserving the right to negotiate" is ok and not a trick?