Debt settlement agreement

Debt settlement agreement

I just received a fax letter from BoA for $.20 on the dollar. To be paid over 6 months. They are demanding a check over the phone for the first payment. Should I pay this? Is this settlement a binding agreement? I dont want them to come back and say I owe the full amount.

well .20 cents on the dollar isn’t bad and paid over six months that is good too most people want it paid in 30 days. I think i would do it. tell them to send the agreement in writing.

NEVER, NEVER, NEVER, NEVER, NEVER (get the point?), give a creditor on a cc, mortgage, etc. a check over the telephone. Then you have given them all you checking info and they can and sometimes will tap into your account for more money, whether there is money there or not.

Here is the catch, they take another payment, what do/can you do? Take them to court? You owe them anyway.

Send money order, cashier’s check or regular, but do not give someone that kind of access. It is paramount to danger.

Just my advice.

I agree about your bank account; but also consider this … if you can find a local bank that offers free checking, open an account there and use it for times like this. It works well, that way you only have to put the exact amount needed in at the time it is needed. They can’t get money via wire if the money isn’t in the account; so don’t keep extra there (just enough to keep it open)

They can’t get money via wire if the money isn’t in the account; so don’t keep extra there (just enough to keep it open)

Actually they can. Certain banks offer “courtesy” overdraft on your account. The “courtesy” overdraft amount varies from bank to bank and does not necessarily have to be applied for.

Your account can be overdrafted even if you don’t have the money. Similar to making a purchase at a merchant, some banks will allow you to overdraw your account.

Anytime you give out your checking account info you put yourself at risk. I have done check by phone but before but as Deb suggested, I keep a very minimum amount in there. If a creditor tries to access my account it’s very easy to close that and open a new one. I use one account just for my pro rata plan and all other funds have been moved to an account that is not affiliated with any of my creditors.

Anyway, I never thought of the “free” checking account idea but I really don’t think it’s a necessity. There aren’t any “deals” that are honestly only good for “today”. They will always accept a money order unless their intent WAS to clean out your account electronically and the good deal was just a ruse.

Be wise and remember that all they want is their money…anyway they can get it.