The following is an e-mail trail between a debt collector and a debtor. As you can see, the debtor got the deal in writing, and was even able to settle on the account--even after being taken to court. I am not saying everything that was done could have turned out better for the debtor, but given what they had at the moment, this is how it turned out.
The debtor, after going to court, wrote a letter to the creditor asking to settle the $2300 debt for $1000.
Friday, 27 Apr 2012
I am in receipt of your $1,000.00 offer. However, since it is
considerably lower than my settlement authority, I would need
complete the attached economic profile so it can be reviewed
A. S, Attorney
Monday, April 30, 2012
In speaking with my financial counselor, I will not be filling out
any of your attached paperwork. It is completely unnecessary in this
process because you know just as well as I that there is no review
process. In researching debt collection companies such as yours,
and in speaking with former debt collector employees, I know you
purchase these debts for pennies on the dollar. In many cases you settle
for 25% of the total debt. With my $1000 offer, it is around 40% which
is more than generous.
Let's play this game, shall we? What is the lowest offer you are
supposedly "allowed to go"? I'm sure you'd like to get
off your plate, so it better not be much higher than my offer.
Tueday, 1 May 2012
In response to your allegations, our law firm does not buy debt and
did not buy your account. Rather, we are the attorneys for Megabank,
who is the original creditor. Megabank did not sell your account.
Rather, it is merely trying to collect on the debt that you have
failed to pay. I am able to offer settlement in full in the amount of
$1,605.62 so long as it is received by my office no later than noon
on May 31, 2012. I will note your refusal to complete the economic
profile to have your low offer reviewed and considered.
I await your response.
A. S., Attorney