Collection settlement offer (bankruptcy lawyer, BoA)

Collection company gave me an offer to settle with Bank of America. $15,000-pay $3,9050.00. He said he could put it on my Visa card (I don't owe any other debts) and I would make payments to them. Does this offer seem ok to do? How should it be written up so they can't come back to me ever again? He said on my credit report it would be cleared up and marked settled. I read somewhere that I should have them put "paid in full" and not their way. Would that be a better idea? Did contact a bankruptcy lawyer and he said the offer would be ok but I need your second opinion please. Thank you very much!

[AFFA]

I wish to inform you that you can enter into a settlement agreement in writing and mentioning that Bank of America agrees to the terms of the settlement as full and final settlement of the loan and further that as the present debt is finished therefore you cannot be made liable on this debt again in future. These terms will protect you from any liability in future. Settlement agreement should preferably be in writing and signed by all the parties including Bank of America.

AFF

A resounding NO. Do not make any deals, agreements, or promises to any collection agency. They are not who is owed the loan and they are not collecting on behalf of the original creditor.

Have you sent them a letter requesting they validate the debt? You have the right to do so, even if you know or believe the debt to be yours. If you send them a validation letter, do not acknowledge the debt is yours. Ask them to validate that the debt is actually yours.

If you pay via your visa card, you'd be making high interest payments to your credit card company, NOT the collection agency, as if you paid via your visa card, you'd be giving them the entire lump sum they are greedily asking for. They paid pennies on the dollar for the debt and will make a huge profit if you are naive and gullible enough to pay them.

Collection agencies are notorious for telling people their credit report will be "cleared up". This rarely, if ever happens. What they do is insert that the debt has been paid, and the item remains on your credit report from DATE OF LAST ACTIVITY. This means that if the debt was calendared to fall off your credit report this coming October, and you paid the collection agency today, the clock would start from today's date (activity, as you paid it), and it would stay on your report for 7 years from today's date. Bad idea.

Do NOT communicate with ANY collection agency over the phone. Send them a debt validation letter (google for samples on how to word it), and in your letter, give them notice that as of the date of their receipt of the letter, all phone communications must cease and desist. By the Fair Debt Collection Practices law, they must comply with your request. Also include that no third parties are to be contacted in any way either.

I urge anyone who is having to deal with collection agencies to research Fair Debt Collection Practices Act, and the Fair Credit Reporting Act.

It is very surprising (and a little alarming) that a BANKRUPTCY attorney would have given you such horrible advice. Those types of attorneys are supposed to also assist consumers in CONSUMER PROTECTION. Unfortunately, there are many green lawyers practicing who don't know their ass from their elbow. Ignore his "advice". Look for an attorney who specializes in Consumer Protection.

If you send the validation request letter, the collection agency has 30 days from date of receipt to respond, and in the meantime, they must remove the item in dispute from your credit report. If they do not respond within the 30 day period, they must remove the item from your credit report permanently.

Send your validation request letter via USPS, certified, return receipt requested. This will present you with proof they received the letter, and on which date they received it. It also provides you with a signature.

If B of A signs and agrees to settle, you can settle it.

But all parties must sign and have the collector and bank send an agreement signed by B of A.
Then have a lawyer review it.
Banks do settle debts these days but as the poster above noted, you have to be VERY careful.

Bank of America, most likely, does not even know of the collection agencies communications with the Original poster. Collection agencies lie, and word things to be intimidating, give a modicum of plausibility, and pose statements to be deliberately misleading.

Don't take stock in Bank of America having any knowledge of this "settlement offer".

Any company who fails to utilize the courts to retrieve their money, and instead, hire bottom feeder collection agencies, is a sleazy company to do business with.

if B of A signs you are fine

many collection agencies do a great job

A great job at violating the Fair Debt Collection Practices Act. That is about the only thing collections agencies are "good" at. Most employees of collection agencies are people of ill repute, minimally educated, and possess no real life set skills.