November 4th 2004

Received a letter from Alliance One giving the debt total ($4389.18) and a new name - Dave Barron at extension 248

November 20th
And another letter from Alliance One with a formal offer to settle with RBC - amount (the original amount sans interest I beleive)

This offer will be null and void after November 29, 2004.  Upon receipt of funds, a second letter will be issued as an unconditional verification that the total amount was received, cleared and accepted as full and final payment of the above noted account. Upon satisfaction of the above terms, your account will be settled in full.

But the letter also says at the top WITHOUT PREJUDICE

I think I've read that any settlement offer with the phrase Without Prejudice on it actually voids the offer, is that correct?

We're ignoring this because, as usual, we simply don't have $4000 to pay.

Cesca,

There are a couple of things Alliance is not telling you:

1. Most CA's are given blanket authorization by the chartered bank client to offer a settlement, at any time, to a student debtor, provided that settlement entails repayment of the loan at no less than 80 cents on the dollar. So the deadline they have set is a tactic CA's use to try to get you to pay right away. I got about 4 or 5 of these letters until I settled with NCO on my terms in September 2004. So disregard this offer cause your are bound to see similar offers to settle in the near future 

2. Alliance has not told you of the consequences of settling in full. Settling in full is not equal to paying in full. This makes a huge difference on your credit rating. Credit is best rebuilt through paying an outstanding debt in full so you are best to pay the account in full if and when you are able. Settling the acoc**t will, however, end the harassing phone calls. 

In sum, the letter you received is a polite tactical way to induce you to pay the debt ASAP. From their prospective, the sooner you pay the sooner they get their commission.

Ok, the term without prejudice means is a term used when two parties are in dispute, and one makes a settlement offer to the other. Alliance has placed 'without prejudice' on its offer to make it clear that their settlement offer should not be construed as a waiver of rights. Importantly, communication marked 'without prejudice' cannot be used in evidence in court proceedings if the attempts at settlement fail and the dispute comes to court. (source: http://www.finance-glossary.com/terms/without-prejudice.htm - http://www.finance-glossary.com/terms/without-prejudice.htm )

Contact Alliance if and when you are ready to repay the debt either in full or on a payment plan. Disreagard the letter like the one you received on November 14th. These letter are both a waste of time and paper.

Hope this helps and good luck, friend.

Coffee,

It's nice to know that you settled with NCO on your terms in your time.  I am hoping to do this at some point with them as well.

But...until I have enough saved and/or borrowed to do this...they will have to wait!!!

Thanks for the info Coffee. Much appreciated. 

Cesca