I finally did it!!! Is this settlement offer legit?
Spoke with Discover yesterday. I had a 5K balance that turned into a 7K balance (thanks, James) with fees, etc. that I think I have managed to settle for $3200. Thing is, I have never done this before (James screwed me and stole thousands, having done nothing to earn it while wasting months and months doing jack) so I am a bit skeptical that I will be in the clear once I pay it.
If they provide me a letter that states that my obligation to Discover will be settled-in-full upon receipt of the funds, does this mean that they will not attempt to collect the rest of the debt? Or sell it to a third-party? Originally the rep tried to get my bank account information BEFORE agreeing to fax the letter, which I vehemently opposed (as my trust is now non-existent, after the Lombardo fiasco.) I finally convinced her that in light of what I had been through with James, I needed something official in writing. She agreed.
I then asked the (very nice) manager if they could add something to their settlement letter detailing that Discover will not sell the remaining debt, and she said that all letters are standardized and that while it will state that my debt to Discover is satisfied, it will NOT specifically state that the debt will not be sold, etc. She said I will be 1099 on the forgiven amount, which makes me feel a bit better for some reason (since maybe they can't collect on a legitimately forgiven amount).
She did say that Discover is a reputable company and they "don't work that way," meaning that I have nothing to worry about regarding further collections activity.
For those of you who have settled successfully, can you shed some light on this? The reps also stated that the account was going to be turned over to an attorney at the end of the month if it is not settled before then, and obviously I want to make sure that this does not happen.
I wish I had tried to do this on my own before hiring James. The companies seem much more willing to negotiate with me than I had thought they would be, which is probably why I feel so suspicious that once settled-in-full, my accounts will actually be satisfied.
I hope James gets what he deserves--but in the meantime, he lost out on another $5K in fees that he could have earned from me if he had just done his GD job.
Thanks for any advice.