Does an offer to settle a debt for less than the full amount validate the debt?
I received a letter from Cohen and Slamowitz, a law firm, notifying me that my creditor (citibank) has referred my account to their office for collection. They state that I have 30 days to ask them to validate the debt.
I am planning on sending them a letter to validate the debt, but I am considering offering them a settlement amount to clear the debt.
By offering them a settlement offer (a take it or leave it), does that in effect validate the debt and validate the fact that I owe this money? If we cannot settle, and this ends up going to court, will the fact that at one point in the process I offered to pay them a sum of money to settle the account hurt me and will they use this as evidence that I in fact owe all this money?
Any tips or answers to my problem will be appreciated. Thank you.
The debit is relatively new… it is credit card debt and I defaulted in April or May I believe….
Put in your letter that you dispute the debt and offer the compromise without admitting liability.
August 8th, 2010 at 7:08 amAmen to the above answer.
August 8th, 2010 at 7:08 amOf course it does. What attorney wouldn’t make sure the judge knew that you acknowledged the debt. You might try submitting a written deal denying the debt, but being willing to make it go away in lieu of a court hearing. I seriously doubt that they would accept it though, unless it was a substantial amount that you would settle with lump sum cash payment.
August 8th, 2010 at 7:08 amacknowledge the debt and who will accept less!!!!.
August 8th, 2010 at 7:08 amNo No
dispute and see if they will negotiate
get a letter saying debt satisfied in full afterwards