I was just reading my Eli Debt Collection Compliance Alert and there is an article about settlement letters used by collection agencies. I know most of the readers of this blog are creditors trying to collect more money, but you should be aware of this as well as anyone working at a collection agency.
If you state that the settlement offer is a "one time" or "final" offer, it must be your final offer. Otherwise you are violating the FDCPA with false, deceptive, or misleading representations. The article states that a federal appellate court bought this argument, so we need to be aware of this.
You can still offer settlements, but if you are going to continue your collection efforts for the full amount after sending out a "Final Settlement Offer", make sure you remove the words "Final" or words such as One-time offer or Last Chance. Unless this is really the final offer or last chance.
If you don't state that this is the last time you will offer a settlement, or continue to try and collect, then if they do not accept the settlement offer, you can continue to pursue the debt and for the full amount.
On this topic of letters, my newest e-book "How to Get Your Customers to Pay, Fast, Easy, Effective Letters" will be available tomorrow. It has over 75 letters, forms, agreements, and applications you can use in your business.
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