Any leads on how to approach and what exact language to use in the letter of the agreement. Should I just repeat the original wording? And if they say now what are my options, and possible consequences for each option? Also, how do I make sure that the original creditor (Wells Fargo) still truly owns the debt and it was not sold to a collector?
I was wondering if you can comment/advise on this:
Wells Fargo responded and wrote that they are ready to settle my loan by me paying the lump sum and wrote also:
"In accepting this settlement, we intend to discontinue collections, Upon receipt of valid funds, we will update our records to indicate that the account is settled, including in most circumstances reporting to consumer reporting agencies this account was settled and charged off for less than the full balance. Your payment(s) are confirmation of this arrangement."
My letter to them had this text in it:
Dear Collection Specialist:
I am writing this letter in response to your recent correspondence related to the account number I referenced in the subject line above. I am considering the possibility of settling this debt.
I accept no responsibility for ownership of this debt. However, I'm willing to compromise. I can offer a significant settlement amount in exchange for the following:
You agree, in writing, to designate the account as "payment in full" once you are in receipt of the agreed upon payment amount. The account will not be designated as a "paid collection" or "settled account." You agree, in writing, to completely remove any and all references to this account from all credit bureaus to which you and all debt collectors you used in connection with my account report.
I am willing to pay the amount of $8,036.54 as per your letter to me dated 5/6/20 is an available settlement option. I am willing to pay $8,036.54 as settlement for this debt in exchange for your agreement to remove all information regarding this debt from all credit reporting agencies to which you and all debt collectors you used in connection with my account report within fifteen calendar days of receipt of payment.
When I am in receipt of a signed agreement with the aforementioned terms from an authorized representative on your company letterhead, I will pay $xxx via your preferred payment method, including cashier's check/wire transfer/money order.
Thank you very much. I appreciate your time! If you have a moment to comment further:
is it safe enough to call the number in the letter and ask for that or write to them with this pay for delete? and what kind of written commitment from them should I believe is strong enough to count on pay for delete will happen?
I was unable to start paying off my 20k educational loan with Wells Fargo for 4 months after the start date arrived. By the time I tried to arrange a plan they wrote it off. I started paying 500 a month and stopped with this crisis for 3 months as they were not sending me any written communication and I was not able to reach them at all since they also closed my web account on their portal that I had for years. This delinquency came up on my credit which previously was excellent and brought my score down a lot. Today they sent a letter offering I either pay monthly my entire balance or pay off the whole thing by giving them a lump sum of 8K.
Can anyone help with good advice on how to approach so to not make my situation worse and if possible recover my credit reputation?