Verizon Wireless settlement offer - Do I accept?

[verzondebt]

This is from Illinois. The account went chargeoff in Summer 2012. I've been willing to pay it for a long time so long as I can have it removed from my credit. Any advice on how to go forward? Thanks for any help! The text from the letter is quoted below.

 

 

 

Verizon Wireless realizes that sometimes certain events make it difficult to pay bills. Verizon Wireless would like to extend a one time offer to settle this account for only $xxx.xx. This limited time offer represents a substantial 50% savings off the balance you owe.

Continued collection efforts for the full delinquent balance can be avoided by accepting this offer and remitting a payment in the amount of $xxx.xx by [date].

Once payment is received Verizon Wireless will consider this delinquency resolved and all credit bureau information for this account will be updated as paid.

This One Time Settlement Offer to resolve your unpaid delinquent balance and avoid continued collection efforts, INCLUDING DEBT SALE, Expires within 30 days from the date of this letter, after which this offer becomes null and void.

 

[ProcessServer]

Sounds like they are offering to mark your collection account as "PAID" but won't remove the charge off and says nothing of them not reselling the exiting balance of the account to a collection agency.

[verzondebt]

What effect would having PAID on my credit score be? Do you have any experience with Verizon granting a PFD? Reselling the existing balance does sound like a problem.

 

Thanks for any other insight.

[LKH]

It won't be a problem if everything is done in writing and signed by an authorized agent of verizon. Make sure a statement about not selling, trading, transferring or conveying in any way, any info or unpaid balances to anyone at any time. If they can't convey any info about the acct, they can't verify it when you dispute it with the CRA's. If they do, you have a lawsuit against them.

 

A paid collection on your reports will do nothing for your scores. Just the fact that a collection is reporting, will hurt your scores.

[verzondebt]

It won't be a problem if everything is done in writing and signed by an authorized agent of verizon. Make sure a statement about not selling, trading, transferring or conveying in any way, any info or unpaid balances to anyone at any time. If they can't convey any info about the acct, they can't verify it when you dispute it with the CRA's. If they do, you have a lawsuit against them.

 

A paid collection on your reports will do nothing for your scores. Just the fact that a collection is reporting, will hurt your scores.

 

 

Interesting. So if I can get them to add that addendum I should go forward with it. Any quick tip on how to dispute with the CRAs? Certified letters? Wait a certain time period before doing it?

 

Thanks for your help and your site!

[dockworker]

Also keep in mind you will receive a 1099-C (IRS will receive a copy of this as well) and you'll owe taxes on the written off amount as the IRS sees the forgiven amount as income for the year that you settled.

 

The date of last activity will be updated most likely, which would case your score to drop a few points as the negative account is now recent.

[leolibby]

^{I got a letter from a collection agency saying I had a Verizon debt and they were willing to settle. But I've never dealt with Verizon and it is not on my credit report. I researched the collection agency. It was a fraud. Illegitimate.}

[verzondebt]

^{I got a letter from a collection agency saying I had a Verizon debt and they were willing to settle. But I've never dealt with Verizon and it is not on my credit report. I researched the collection agency. It was a fraud. Illegitimate.}

 

Was it with verizon letterhead?

[verzondebt]

Also keep in mind you will receive a 1099-C (IRS will receive a copy of this as well) and you'll owe taxes on the written off amount as the IRS sees the forgiven amount as income for the year that you settled.

 

The date of last activity will be updated most likely, which would case your score to drop a few points as the negative account is now recent.

 

So looking at my credit in the long term (1-3 years), what is better? To do as LKH said or to just ignore this and wait out the SOL?

[leolibby]

 

^{I got a letter from a collection agency saying I had a Verizon debt and they were willing to settle. But I've never dealt with Verizon and it is not on my credit report. I researched the collection agency. It was a fraud. Illegitimate.}

 

Was it with verizon letterhead?

 

If it did that would be a red flag because the letter was from a collection agency. I've never gotten any Verizon bills or collection letters. Scams are out there.

[dockworker]

 

Also keep in mind you will receive a 1099-C (IRS will receive a copy of this as well) and you'll owe taxes on the written off amount as the IRS sees the forgiven amount as income for the year that you settled.

 

The date of last activity will be updated most likely, which would case your score to drop a few points as the negative account is now recent.

 

So looking at my credit in the long term (1-3 years), what is better? To do as LKH said or to just ignore this and wait out the SOL?

 

 

 

The more I think about this, the more I would actually pay it off, here is why:

 

It may make sense to settle now if this is actually from Verizon (call them and confirm). The logic being that if you don't, they may sell to a JDB who in turn will post a collection account on your report.

 

If the account charged off in 2012, meaning the last payment was made then, it (and any future collection account associated with it) will remain on your credit reports until 2018 at the earliest if you're unable to dispute it off. The sooner a payment is made, the less recent the DOLA is later down the line. If you get a summons you will have to pay it off, if you want to buy a house you will have to pay it off. Any score that drops now will eventually recover over time.

 

I don't know what Verizon's policy is regarding PFD, but you can try that first. Make sure you have money in the bank to cover it you are going to attempt to dispute it and not pay/settle.

 

Knowing what your score is and any future plans for a vehicle/mortgage would be helpful.

[verzondebt]

Score is about ~560, I also have $5kish chargeoff from a major bank credit card and $750ish from a specialized doctor. All from the same time period. Had about an 800 score before I hit some really rough waters in 2012.

[dockworker]

If the balance is small, I'd just pay it to guarantee that you won't get hit with a collection account. If Midland gets it, no way it's going off and they might even sue for smaller balances.

 

Getting it marked as 'paid' now won't put you any worse than you already are since you have those two other negatives. I had a $5k-ish charge off with Amex and I ended up paying it off because 1) I had the means to do so and 2) it guaranteed that I didn't get another collection account (it also helped I was eligible for the Optima program and got back in with them).

 

If that CC debt you have already has a collection account I'd not bother paying it and wait for SOL to expire, otherwise, you might want to consider paying that too. For me, the value is in avoiding newer collection accounts even if it means updating date of last activity on an account, and paying it.

[verzondebt]

Should I be concerned about calling them to ask these questions? Will it restart the SOL or anything by contacting them regarding my account?

[ProcessServer]

Should I be concerned about calling them to ask these questions? Will it restart the SOL or anything by contacting them regarding my account?

 

No.

[jonson]

If the account is still with Verizon, you may want to consider paying the account in full if there's a chance you will want to use their services in the future.

 

I once had Verizon, and after I ported out my number, they shut down my online access and sent me a bill with no details on the charges. I demanded to see all charges contained in the last bill. By the time I actually received the documentation, the amount due was delinquent and their collections department offered me a 50% settlement (on a bill of around $70). A friend of mine who worked at Verizon at the time informed me that if I accepted a settlement, they would likely require a large deposit if I ever decided I wanted service with them again. So I paid the amount in full. Even though I will probably never go back to Verizon.

[Leykis101grad]

VZW was a real PIA to dispute off my reports. Lots of time & lots of complaints to regulatory agencies.....

[BRBiz]

They are known to be very difficult to deal with and you will seldom to never see a PFD. They know they have superior cell service and people who need it will be back. I know a few people who moved up to NH and at some point owed Verizon money and to get cell service set up had to pay large deposits. They really had no choice it was either pay a deposit or no cell phones since Verizon was the only company that had service in that area.

 

I had used Verizon for years for my business and I must say from a small business stand point they sucked. Customer service sucked, prices sucked, you get the point. But the service is great so I dealt with it till recently I got lured over to AT&T and I very happy with the pricing and service I get. The cell service has been excellent also.

[verzondebt]

VZW was a real PIA to dispute off my reports. Lots of time & lots of complaints to regulatory agencies.....

 

So given the choices what would you do? Take the settlement while getting them to say they won't contend or sell the other half of the debt or just wait out the SOL?

[CG in TX]

 

This One Time Settlement Offer to resolve your unpaid delinquent balance and avoid continued collection efforts, INCLUDING DEBT SALE, Expires within 30 days from the date of this letter, after which this offer becomes null and void.

The way I read this, if you pay the settlement they won't sell the debt. I would pay the settlement and hope they sold the debt to a JDB. You would then have 2 entities to sue, Verizon and the JDB.

[Leykis101grad]

 

VZW was a real PIA to dispute off my reports. Lots of time & lots of complaints to regulatory agencies.....

 

So given the choices what would you do? Take the settlement while getting them to say they won't contend or sell the other half of the debt or just wait out the SOL?

 

In hindsight I would offer to pay the full amount if they would remove from report...Have you asked about that scenario? Maybe some kind of GW request. Malenurse has some contacts high up at VZW on the West Coast. I would try a GW request via email blast and see if you get any bites.

 

I am surprised I didn't get a restraining or no contact order during my dispute with VZW.