When a below parameter settlement offer is submitted to a creditor, that creditor wants everything, and maybe even your first born.

In all reality, it's a PITA to complete the paper work to get it to happen. Each collector has to collect a minimum amount each month, and if you want to try and submit a settlement that needs approval, it takes time, and it could be a waste of time and effort on the collectors part.

As far as what the creditor usually wants, is a letter of hardship explaining your situation, a financial questionnaire and a proof of income. They also want to know, if you own a home, the value of it, if you own or lease a car, the value of that as well as any investments you have/own. They won't settle to people who they believe can pay. And a lot of times, they will counter offer.

When the collector says they can only submit one claims for settlement, they are not lying. If you offer 40% and the creditor says no, we want 60%, you either must pay the 60% or you must pay the full balance that's owed. The creditor will counter offer, which closes the door for a resubmit.

Greetings,

I had a credit card with Canadian Tire several years ago that has been moved to a collection agency by the name of CBSC for the amount of $3300.

I know I owe them money, but I simply can't afford to pay them the whole amount seeing as I'm both a) unemployed b) a student.

I talked with my father and he agreed to give me $1400 (just over 40%) to get rid of them. I offered the lady a lump sum payment of $1400 and she refused to even approach CT with an offer below (50%, this later changes to 60%).

She has also been telling me that if she approaches Canadian Tire with a settlement offer and they refuse that no possible settlement offer could be made in the future i.e There is no room for negotiation once an offer has been made.

Out of sheer desire to put an end to this I offered her $1700 today (over 50%), and rather than trying to settle like I thought she would her exact words were "I haven't made myself, clear. I can't guarantee a settlement for less than $2000 (and even then probably not), are you willing to risk not being able to settle over $300."

I replied that I was willing to risk it, (which seemed to set her aback a bit). She then became VERY defensive and wanted to know what other debt I held so that she could show that's all I can pay.

The person I deal with is very aggressive, refuses to negotiate or approach CT (obviously on commission), and alters her story all the time.

I suspect she is lying, but my questions are the following:

1- Is she right when she says if a settlement offer is rejected that no settlement can be done in the future?

2- Am I obligated to give her info on my other debts? (This seems to be very intrusive and irrelevant to me, and more to see how much the agency can get out of me, rather than the credit card company)

3- Any advice in dealing with this person? I'm extremely frustrated, because I'm trying to make good on something but keep running into an unpleasant brick wall.