How much should I settle for?

by Robin
(Nashua, NH)

I first became late with a Dell Financial payment in 2005 I believe. I did pay sporadically after that. Unfortunately, I am a stubborn person, the computer broke during the warranty, and Dell would not help me without charging me. That made me mad. My last payment was in April of 08. Apparently in 11/08 they wrote off my debt and I was never contacted by anyone until 5/09.

In 10/09, I offered them $400 on a $1600 debt. They countered by sending the computer printout of charges/payments, and I calculated I had paid almost $3000 (a bit more) on a $1400 computer because of the interest. They then sent me (a month later) a settlement letter for $970 with no mention of not selling my remaining balance or deleting from my credit report - which I had asked for in my settlement request. Within a week, I was contacted by another collection agency and have not heard from the first one since.

Apparently they didn't want to wait too long for my response to their offer. Now, the second one calls me constantly, and I don't want to answer since I am not sure how to handle this second one. Could the first one be waiting for this to be settled to then say I still owe money? Should I get something in writing from the first saying they sold it?

I want to settle with the second, as I do feel I have a moral obligation to pay something, but what should I start with? The first CA obviously sold the debt for more than my $400 offer or they would have taken it from me. Any help would be appreciated. If it wasn't for the fact I know these CAs paid pennies on the dollar, I would just pay the full amt.