Royal Bank loan

 In your case, from what you have described, the collector is using the threat of legal action as the motivational tool to get you to respond in the way he or she wants you to.

 In a nutshell, the collector is offering you the incentive of a potential settlement to avoid legal proceedings by the way it sounds.

 Collectors have permission to settle accounts for a certain amount. In many cases, collectors toss around numbers in an effort to get you on the hunt for cash. Then, once you comeback to them with the cash thinking you have struck a decent deal, they suddenly change their tune and tell you that they have to take it to their client for approval first. If your lender rejects the offer, then the collector knows that you have a certain amount of cash that they can approach you for. This is where the rules get broken when you put up resistance.

 Lesson # 1 - never pay any money out unless you have something in writing to the effect from the lender.

 Lesson # 2 - Don't borrow money from a high risk/high interst lending institution or finance company to consolidate debts. These companies charge more than 30% interest on note loans in most cases.

 Suzi,

 I can solve this crunch of yours if you want. I offer information freely all of the time, but if you want it solved, it will require intervention. If you would like to become a client, let me know.

 Otherwise, I wish you the best of luck and keep us all posted.

 Kind regards,

Johnny

 www.cfwgroup.ca

 www.cfwgroup.ca.forum

 Sure they can settle with permission from their client. Or, within the parameters of their blanket approval. But in most cases they simply toss around numbers to see what a debtor can scrape up - and then pounce on the oportunity to collect on that in the event that a settlement is declined.

 You should know this stuff.

 I am sure this is a tactical methodology that all collectors adopt in the process of learning how to motivate people - and use fear as a tool of the trade. It happens all over the world - likely even in Southeast Asia.

 Johnny

 www.cfwgroup.ca

 "Most Banks will settle for about 50% for long term unpaid debt, because of write offs."

 This is not true at all.

 The standard amount is anywhere om 90% down to 80%. In some instances they can go to 65-70% depending on the client. For instance, CIBC aconts in third-party that are under $5000.00 can settle for 65% - sometimes 70%. For accounts over $5000.00, the norm is 80-85%.

 The only way a collection agency can settle for less than 60% today is if the debt has been purchased by that agency. There are collectors who have been removed from the industry for acepting their commonly described "below parameter" settlement offerings without permission from the lender.

Johnny

www.cfwgroup.ca