How to check a settlement letter before sending payment?
When you have reached a settlement agreement with a creditor, it is very important to review the Settlement Letter to make sure it is valid before sending any money to the creditor. UGotiators are guided through reviewing each letter so you can feel confident prior to sending in your payment.
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In UGotiate, when you report that you've accepted a settlement and received a settlement letter, you will be brought to the following page to check your letter:
Remember: do not send the creditor any money before you check your letter!
The 4 items shown above are the minimum requirements for a settlement letter to be considered valid.
It is very important to make sure that your settlement letter contains all 4 items. If any of the items are missing, UGotiate will guide you in how to handle.
Below is an example of a settlement letter containing the 4 required items for a settlement letter to be considered valid.
Minimum Required Items for Settlement Letter:
1. Payment Due Date: This is the date your payment is due to the creditor. Check the letter for the agreed upon due date.
IMPORTANT: Will you have enough time between now and the due to date to mail the funds? If the due date is close, you must be able to send the funds by expedited mail. If the creditor receives your money after the due date, it is likely the settlement will be voided and the funds you sent will just be applied to the balance and you will still owe the remaining balance.
2. Settlement amount: This is the agreed upon amount to resolve your debt for less. Make sure the letter clearly states the correct amount.
3. “Settled in Full language” – This item isn’t as cut and dry as the others. It is crucial the letter includes some sort of language indicating that the Settlement Amount is considered payment in full on your account.Since each creditor has their own way of saying this, there can be many variations. On the Check Letter page you may additionally find the full list of expressions used by creditors to state that your account will be considered as Paid in Full. When checking your letter, UGotiate provides examples of common phrases creditors use to state the account will be considered ‘Settled in Full’, as shown below.
4. Original Creditor Account number – The settlement letter must include an account number that you recognize. It can be the Original Creditor’s account number, the current creditor’s reference number or both.
After you have reported the above information to UGotiate, you will be directed what to do next. As shown below, simply click the ‘Get Guidance’ button and UGotiate analyzes the information you entered about your letter.
UGotiators are guided if their settlement letter is valid and if they should send payment. If UGotiate finds that the letter is not valid, guidance is provided on how to handle and what to do next. Log on now to see how UGotiate can guide you after checking your settlement letter.
If you’re not using UGotiate yet, now is the time. Feel confident in managing and resolving your debts with guidance, tips and tools from UGotiate. Try it free: www.ugotiate.com, enter promo code ‘KNOWLEDGE’ for a special discount.
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