Car Repo / Collection

[davids]

my wifes car was repo'd in 2000, now the balance is around $7,000
we tried to settle last year with no luck, now all of a sudden, days
after our new phone was installed, here comes a call saying they
wish to settle for $1,500. if this is legit, then yes I would
like to settle for much less then what is owed.

I could use some advice on this...

is this legal? after getting the $1500 would they truly
report her to credit b. as being paid in full (thats what they said)

I just do not want to be stung for $1500, that can buy a lot
of food, but i know paving the way for her credit is important also.

any tips would be appreciated.

thanks
david

[HHM]

If you get it in writting, then you should be fine.

[HRx]

Just get the settlement offer in writing, and be certain that the offer is from the appropriate source. You can call the lien holder or collection agency directly to tell them that you want it put in writing that they will update your wifes credit report to reflect <yada yada yada> within "X" amount of days, etc.

If the settlement letter is coming from a collection agency an not the original financing company, ensure that the letter states state dba on it somewhere, and make sure the collection agency does not have a trade line on your wife's credit too.