Whatsup people

Submitted by Anonymous (not verified) on Tue, 04/13/2010 - 03:52

Whats up guys,

I just settled a pretty big debt (8k), for about half price with a firm called John C. Bonewicz

I got a signed letter from them saying that the debt is clear now, I will get a "zero balance" letter in about 30 days, according to them.

Did I follow the right procedure, is there anything else I can do to make sure everything goes well and I'm not taken advantage of?

Thanks

Hi Someguy,

Pull a copy of your credit report and check the status of this account. Your account should get listed as "Paid as settled" and the account should show zero balance. However, your account may show zero balance after they send you the "zero balance letter". Can you tell me whether or not you had sent a "Pay for delete" (PFD) letter along with the settlement agreement? With the PFD all the negatives on the account gets removed.

If the creditor or collection agency fails to update your account, use these letters and your payment proof to update the account status and balance. Send a certified dispute letter to the credit bureaus, attaching the documents. After some days, again check the account status on your credit report.

Hope this helps.

Regards,

Aaron

Tue, 04/13/2010 - 05:34 Permalink

Usually a pay for delete is not possible unless you offered full payment.

Also look out that you might receive a 1099-C form, this means that you would have to pay taxes on the money you saved in the settlement. In your case this will be done, the rules are if the consumer saves more than $600, and you definitely did that.

Tue, 04/13/2010 - 22:39 Permalink
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