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I have an old debt which is out of SOL with Midland the current CA for Providian card. Debt has been validated. They have sent a letter that offered 40% off of nearly $3000 debt. If paid the amount, they said they will make the account "paid in full" on my credit report. It's a normal CA letter with that offer, no signature of any kind, just their name and phone number.

What do you think about this offer? Should I take it? What are the consequences?

Don't jump the gun just yet.....have you spoken with the CA yet or just gotten a letter? I would expect to see something a little more formal...however, I have a debt with a CA/law firm that I pay $100 per month on. Every few months or so they will send a letter offering me a payoff amount reduced by xx%. It is usually just a copied letter and very informal. They sent one at Christmas and around tax time and then one again about the time people were getting their stimulus checks.

Sub: #1 posted on Sat, 07/19/2008 - 08:44

Lorri Lorri
(Posts: 1721 | Credits: 224.67)

Since the account is out of sol, the only reason I would consider paying it off would be to receive a full deletion of their collection account on your reports. A paid collection is scored exactly like a unpaid one. In letter make sure the letter states paid in full with conditions stating any remaining balance is not to be collected on or sold.

Sub: #2 posted on Sat, 07/19/2008 - 17:55

cajunbulldog cajunbulldog
(Posts: 4859 | Credits: 425)

Is this still reporting on your CR's? If it's out of statute and beyond federal reporting period, I'd FOAD 'em.

Sub: #3 posted on Sat, 07/19/2008 - 18:35

Moderators Cum Industry Expert
(Posts: 4665 | Credits: 308.23)

Yes they are still reporting on my CR's. I am not srue if I can get them to delete this as I've herad they are one of the worst to deal with. Is there any settlement ompany who can get this done for me?

Sub: #4 posted on Sat, 07/19/2008 - 21:03


What is the Date of First Default on the account? Reporting period is 7-7.5 years from DOFD. Are both Providian and Midland reporting? If both are reporting, call the CRA's and get the DOFD as reported by both Providian and Midland. Those dates should be exactly the same. If they differ, dispute them both in writing.

Sub: #5 posted on Sat, 07/19/2008 - 21:20

Moderators Cum Industry Expert
(Posts: 4665 | Credits: 308.23)

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