Expert: Apex Credit Services, LLC - 12/17/2007

Question
QUESTION: Are these Good terms for a settlement...The "MAY" in the letter has me concerned:

This letter confirms our agreement to settle your account for $x,xxx.xx by Monday, December 31, 2007.  After your payment clears, we will report this account as settled to our client so that, if our client is reporting this account to the credit bureaus, our client may report this account as settled to the credit bureaus.   Please allow up to 60 days for the credit bureaus to reflect this update.


ANSWER: Dear Sir or Madam:

    The langauge of "may" gives you just cause for concern.  One, a collection agency, which is what you're dealing with, has no discretion over what an original creditor reports or doesn't report.  Two, the original creditor may update the account tradeline to reflect a paid status and they may not.  They can't legally refuse to update it but, not all companies follow the FCRA.

    See if you can remit payment directly to the creditor.

         Apex Credit Services, LLC

---------- FOLLOW-UP ----------

QUESTION: Thank you so much...reading the above settlement from a collection agency, would you say it is safe to send payment? Can they legally come after the rest?

Once again, thank you so much

Danny

Answer
Danny:

    The language is acceptable.  It is safe to agree to the terms therein.

    No, the collection agency cannot come after the remainder.  The creditor may elect to sell the remainder but, that is unlikely.

         Apex Credit Services, LLC