3k for 33k....LOVE it!

[getmeoutofhere]

NCO called. Will settle today for $3,200 for a $32,864 AMEX debt! Told them to put it in writing and I would consider it. We shall see....

[ela805]

NCO called. Will settle today for $3,200 for a $32,864 AMEX debt! Told them to put it in writing and I would consider it. We shall see....

WOW! They're settling for 10%?? That's awesome!

[njguy1972]

how old was the debt, was it about to be charged off? I was only able to get them down to 40%.

[getmeoutofhere]

debt

Made the last payment in December 2007....has bounced back and forth to CA

[treehugger1]

Make sure that the agreement in writing states that this account is "paid in full," upon receipt of funds." I'm guessing that NCO is still an assignee of the debt and NCO does not own the debt. If such is the case, one has to wonder what AMEX is willing to accept as "paid in full" through one of their collection agencies. $.10 on the dollar is pretty good for an assigned debt.

On the other hand, if you are not insolvent expect the $29K to show up in a taxable 1099 next year from AMEX, and you will need to submit the $29K as income for federal and/or state tax purposes. Be careful here.

Do some due diligence here!

[StartingOver08]

Also make sure that you specify that NCO can not sell or assign the debt to someone else for collection. Sometimes they will settle with you for x and then sell or assign the rest to another CA!

[kvangild]

Also make sure that you specify that NCO can not sell or assign the debt to someone else for collection. Sometimes they will settle with you for x and then sell or assign the rest to another CA!

Wow! I can't even fathom this happening. You pay-up the 10% and think your free and clean and then a new CA. nightmare!

[mamaof2]

i agree...i got my fair share of 1099's last year, when i thought the BS was done after paying it for a lesser amount, so be careful or like they all stated, you will be having to "claim" an additional $29,000.00 worth of income.

[jadams]

Good for you. I hope the paperwork comes and everything works out.

My largest Amex was last paid in February 2007 -- it went through many collection agencies who refused any type of settlement. Supposedly on Amex's policy to never accept a settlement (though all of us here know that's bogus).

I had a similar surprise 8% offer from FIA on a Bank of America account and they did send everything in writing and everything appeared to be in order. Once my account reached whatever magical status caused this department to call me, everyone I dealt with was very pleasant and helpful.

NCO is known for sending things "in writing" by email, with the text as an attached word document, not on letterhead, not signed, easily editable, etc. -- I would make sure you get it in the post, on letterhead.

[getmeoutofhere]

thank you

Thank you all for the comments. I have not yet seen anything from NCO, maybe in today's mail box.

RE:1099, I fully expect a 1099. However, I have a HUGE carryover losses that will offset these 1099's. I have run everything by my accountant just to make sure...

[njguy1972]

NCO will not give you a paid in full

It will be "settled in full"

Also, on the phone make sure it is a recorded line and validate that they cannot sell or reassign your debt. Amex will not do it typically but this protects you more.