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Discussion Starter · #1 ·
Hi. A little background. I have a debt to a furniture company for a little over $3500. I've been in the hole with this company for a couple of years. I"m now getting letters from what I believe is a collection company although they use the name of a lawfirm (Bronson and Miglicaccio).<br>
Yesterday, I received a letter from the said firm that states they have permission from my creditor to settle in lieu of my current balance. They could possibly reduce the amount I actually have to pay in order to settle the debt. It also says to act quickly as this offer is on a limited basis.<br>
Now, I'd love to jump up and say YES! and pay a reduced amount, but I'm cautious. Is this a good idea? Would settling for a smaller amount and paying a collection agency affect my credit in a negative manner? I'm really super stupid when it comes to these things so I don't know how credit agencies/debt collectors work.<br>
Any info or suggestions would be appreciated.
 

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I don't have any hard facts or information, but my gut instinct would be -- if it sounds too good to be true, it probably is.<br><br>
Are you making payments to the furniture company? I would guess it would be best to deal directly with them.<br><br>
My guess is that the "law" firm buys out collection accounts from small companies, and then includes some kind of fine print that allows them to generate a lot of interest income. They have to be making money on the deal in order to do it -- so you have to ask, from whence will this money come? You, through the nose, or the furniture company?<br><br>
I am just guessing -- I'm not giving you the benefit of any actual knowledge, because I have none, but this is my gut instinct.
 

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Discussion Starter · #3 ·
Thanks, Curlita. Yeah, they do buy out accounts.<br><br>
Since posting my OP, I googled Bronson and Migliaccio. Looks like they are quite a bottom feeder in the collection world. They have many lawsuits against them and use illegal tactics to collect debts.<br>
Now, the agency that sold them the account is Arrow Financial, which is another "business" run by scum who use illegal methods to collect debts and change information and people's credit reports. They also have umpteen lawsuits against them.<br>
What am I to do? My original creditor, HSBC Bank, sold the account to Arrow. I don't want to have any dealings with Arrow or Bronson and Migliaccio.
 

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It's quite likely that you can settle it for less than the original amount. You need to get a signed agreement saying that if you pay $X by a certain date, the debt will be reported as "Paid in Full" on your credit report. Do *not* give them access to your bank account.<br><br>
Once you have a signed letter from them, send them a money order for the amount you have agreed on. You should be able to get any of the interest or late fees taken off the debt, but a lot of these companies will settle for as little as 50% of the debt.
 

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I'd go to <a href="http://www.creditboards.com" target="_blank">http://www.creditboards.com</a> and see what they have to say. Lots of knowledge over there about this kind of thing.
 

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<div>Originally Posted by <strong>MrsMike</strong> <a href="/community/forum/post/9022782"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">My original creditor, HSBC Bank, sold the account to Arrow. I don't want to have any dealings with Arrow or Bronson and Migliaccio.</div>
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You have to deal with them and not with HSBC. You don't owe HSBC any money, they sold your bad debt to another company. If you want the debt to go away you will have to deal with them. Or you can just wait until it's been 7 years and it won't count against your credit report any longer. If you are going to go that route, don't do anything, not a single dime to anyone on the bad debt. Then tell the collection agencies that you will no longer accept phone calls and that they must contact you via mail from this time forward. You will also want to mail them this same statement as well.<br><br>
Creditboards people will more than likely tell you much of the same. it's another forum whose main focus is anything to dow ith credit.<br><br>
Good luck
 
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