Attempting to Settle

I have an outstanding student loan through CIBC that is going on it's 5th year now.  For the past year I have been worked over by NCO Financial in every way imaginable.  It has been a nightmare and I finally wrote a letter of complaint to my MP and CIBC student loan center stating that if the harrassment did not cease I would take my documented complaint case to the media.

Anyway, I have recently had an acquaintance step up and offer to help me out.  My total loan with interest now comes to over $9,000 and this acquaintance has offered to put up $4000.00 to settle the loan.  I have no savings and very little that could be put toward payments at this time.  I have provided NCO financial details to substantiate this fact.  I have put forward the proposal to settle the entire debt for $4,000 and am waiting to hear back.  Is this a reasonable move on my part?  If they refuse the offer the money will not be given to me for payments and I will be starting from square one.

If the offer is accepted is there something that I can have added into the agreement that will help in repairing my credit (which is in dismal shape).  I recall hearing that upon settlement you can request a certain terminology that will give the credit report a cleaner look.

Any advice that could be provided would be greatly appreciated.

When sending in financial/expense details to NCO Financial is it safe to send a copy of one of my paycheques? 

If I am putting forward a proposal to settle (for less than the amount owed) and have already faxed them a copy of my emplyoment contract detailing my annual salary should this not suffice?

I am concerned that they are using the settlement proposal as a ploy to gather private details on me.  for example my employee number, HR department information and company address etc.?  During the same conversation they asked my offical title at work.  How is this relevant to a settlement?

If anyone has any advice on this I could use it ASAP.

Thanks

You need to get a document that states that X-amount is the total debt and inclusive; if they are settling then this is the final and inclusive amount.  If that amount is disputed later, you have the letter that states the amount in black and white.  Anything more they can go fish in the sea.  Then, when you pay it off, you have to badger them for the release of debt letter - that the debt has been paid in full and you are absolved.  Make sure they write that in.

But Withnail, I cannot strees this enough - DON'T SEND THEM ANY PERSONAL INFORMATION! What the foo are you sending them your paystubs for???? Don't.  They don't need that information except to harrass and snoop on you.  It is TOTALLY irrelevant to a settlement.  With them this information is completely insecure and you have no idea where it will end up.  Hunter is right. Just state your business firmly and see what they say. 

Take care.

Thanks for all the advice...I have contacted John and will hold off providing any information to NCO.

When I initially argued against providing any information like an expense list they said that they required justification that I could not afford to pay the entire amount when taking my proposal to CIBC.  This seemed reasonable to me.  However, I am fully aware of the tactics that these people use to gather information and am again becoming increasingly nervous.

If I tell them that I refuse to provide a copy of my paycheque it will likely be met with a hang up.  I want CIBC to at least hear my proposal.  when I tried to contact them directly they said all communication had to be done through NCO Financial.  It is like being caught in a trap.

I have played everything up front and honest....these people do not play by the same rules. 

I just spoke with John at the CFW Group and you are all correct!

He immediately collected the basic details of my case...directly called the representative who I have been dealing with and worked out where I stood.

I am still in the negotiation stage of the settlement but John's help and advice have taken an enormous weight off of my shoulders.  I feel like I am on the right path with some qualified, informed and honest backup.

What a bloody relief!

dazed&confused wrote: How did you bring it up with the CA?  Did you just flat out offer? Or did they mention it to you?

I propsed the offer myself.  They never asked for anything less than payment in full...for a year and a half of negotiations.

Johnny sugessted I send my paycheque.  He said they need this as proof of salary to show CIBC why I am having to settle for a figure smaller than the amount owed.  I do not want them to have any details on me but his reasoning seems just.  There is also no information in particular on the paycheque that they couldn't find out themselves with a little searching on their part. 

Still unsure but forging ahead

D&C

After sending in partial payments to NCO for four years, they started in on the whole "we cannot allow you to continue to give partial payments, we require resolution of this debt speech". The fact that I was giving them partial payments is probably important due to the fact that it shows an attempt to pay the loan. I found out at the time that the resolution speech was not entirely true but I did not tell them that fact.

I responded very nicely that of course I wished to resolve this issue but unfortunately I did not have the money to pay off the loan. NCO immediately responded with the "do you have any friends or family members that can loan you the money to pay off your loan". I responded that I did not but that I would continue with my partial payments.

They then came back at me with the "can you secure a loan at a bank in order to pay off the debt" question. My obvious response was that, due to the damage to my credit rating, I could not secure a loan. They then brought up the idea of a co-signer for the loan. This is when I stalled. For 3 months I kept telling them that I could not get a loan large enough to settle the account. All during this period I continued with the payments. As frustrating as this gets, never stop sending them monthly payments. They will use any stoppage of payment against you.

Then, like the hand of God parting the Red Sea, emerged the settlement offer. It goes something like this....."Mr/s insert name here, we have gone back to your creditor in order to discover if there is any room for compromise. Your creditor has agreed to settle the loan for insert percentage here. Can you secure a loan for that amount?" At first I was amazed. It was if my reality had somehow been altered. One minute they're calling my family (even though they had my number), threatening legal action, and doing everything except threatening to tar and feather me and run me down Bay Street, and then it's all about working together and compromising......

A couple of quick details:

1. As mentioned before on this site....get a letter in writing from your creditor, not the CA, before you send money.

2. Do not send a cheque or a money order. Arrange an appointment with the bank that gives you the loan. Sit in front of your loan officer. get the NCO rep (or whatever CA you're dealing with) on the speaker-phone, and have them do an electronic transfer. They can verify the transfer of funds almost immediately.

3. Get another letter from your creditor indicating that the monies have been received and that the loan has been paid in full.

CA's will infer that settlement offers are unique or special. Although I have no hard evidence to dispute that assertion, I find it hard to believe. I firmly believe that they have a pre-existing magic percentage from the banks. Do we honestly believe that the CA's go to the banks every time a settlement offer is discussed. Think of how much work that is and how much that would cut into their productive day of calling us 5 to 10 times every day. Obviously they want the money but the CA's main goal is to close the file. Closed files mean commissions. Secondly, the banks do not go to CA's to secure partial payments. They go to the CA's as a means to clear up the file. If the CA's can't close the files, they have to answer to their clients....the banks.

CA's want our files closed as much as we want them off our backs. If you're going to settle.....never tell them you have the full amount. They will settle. Just my opionion.