Timing and Amount of Settlement Offers. Settlements will be spread out over the term of your FDR program. The timing and order of our attempts to negotiate settlements of your debts depend on several factors, such as creditor policies (which vary among creditors), your debt amount, the delinquency status of the debt, and the circumstances of your financial hardship. Some creditors may not be willing to negotiate a settlement unless we can demonstrate that you have suffered a verifiable financial hardship, you have enough funds in your Dedicated Account to make an initial or a full payment to the creditor, and your debt is past due or even charged-off. Failure to make full scheduled deposits as indicated in this Agreement or maintain funds in your Dedicated Account could delay efforts to negotiate settlements or could cause you to miss a payment on a settlement. If you miss a payment on a settlement (including any payment on an installment settlement), your creditor may reject or terminate the settlement, reinstate the full, pre-settlement amount of the debt, add late payment penalties, interest charges, and fees, and ramp up collection efforts and other adverse proceedings including litigation. If this happens, although we may attempt to renegotiate the settlement, we may not be able to do so, and any revised settlement may require you to pay more than initially negotiated. An “installment” settlement is a settlement in which you agree to make more than one payment to the creditor to settle the debt. Creditor policies, the allocation of funds to existing installment settlements, and other factors limit our ability to honor client requests with respect to the sequence or timing of settlements. You are relying on our experience and expertise to design a debt resolution program for you to effectively resolve your debts. You therefore acknowledge and agree that we will control the sequence and timing of settlement negotiations. For more information on the timing and amount of settlement offers, see “Important Information—Timing of Negotiations and Settlements” above.
Timing and Amount of Settlement Offers. Monarch will begin contacting your creditors as soon as we determine that a good faith offer to settle a given debt, whether on a lump-sum or installment basis, may be made, with such factors as the creditor’s settlement policies, the rate of account accretion, the size of each debt and how close a debt may be to charge-off. Some creditors prefer that they not be contacted until you have accumulated sufficient funds in your Dedicated Account to allow a negotiated resolution within their historic norms. While settlement guidelines differ widely among creditors, an accumulation of 25% of the then-current balance of a debt will normally enable us to make a good-faith offer to settle that debt.
