Don’t be intimidated because they are lawyers. Under the law, they are acting as a collection agency and subject to all the applicable laws.

I think the best is to send them a letter requesting validation. You can find formats all over the Internet. Send it some 7 to 10 days before the 30 days are up, if you need time and want to stall a bit. While the validation is being put together they can’t continue the collection process. Once they validate, then you can offer a settlement if you can. Don’t offer a settlement in the same letter since this would be contradictory. In my experience, I always sent a validation letter even when I’m sure the debt is mine because I want them to validate the exact amount they are claiming down to the last penny. And I always asked for anything I could think of and let them worry about what is legally required.

Since Citibank is the original creditor, there is a near certainty that they can validate properly. At this point, if you don’t reach a settlement, their most likely course of action will be a lawsuit.

Make sure you send them all correspondence CERTIFIED, RETURN RECEIPT REQUESTED. This way they can’t deny getting the request for validation on time.

It’s always a good idea to google a collection agency to see what reputation they have:

http://www.google.com/#hl=en&source=hp&q=Cohen+and+Slamowitz&btnG=Google+Search&rlz=1W1GGLL_en&aq=f&aqi=&aql=&oq=&gs_rfai=&fp=8f14b87ebbb573e6

If you really owe the money (no fraud, no identity theft, no wrong person, etc), then you automatically validate the debt by not disputing it.

Your debt was sold to a third-party collection agent for pennies on the dollar(usually about 5 cents). If you owed someone $1.00, your debt was bought for 5 cents. You should never offer to settle for more than half of the original debt. If your original debt was $1.00, you should offer 25 cents and settle for 50 cents, at most. The company that you really owe the money to got 5 cents. The collection company will get 45 cents. That’s a HUGE profit for them and a huge savings for you.

If you don’t really owe the money, then never settle. Fight them in court.

EDIT: I forgot to mention. No post-dated checks, no electronic accesss to your bank account, get the deal in writing before you send them a dime. My wife had a credit card that went overdue when she was in the hospital, so I quit paying them for a few months. Her original debt was $440. That debt ballooned to over a thousand dollars with legal fees, late fees, over the limit fees, etc.

My wife didn’t want to be a deadbeat; she wanted to pay what she owed. When I spoke to the credit card company, they said that they can only take payments by electronic withdrawl. That meant that they could take over a thousand from my account, regardless of what the lady told me. They would have cleaned me out. I also insisted on a letter stating that if I sent them $440, then the debt was cleared. She told me that they only send those letters out once they receive payment. I told her no deal. Do it my way or sue. Sure enough, they called me back with an address to send a money order to and mailed me a letter before I sent it. We paid the original $440 and nothing more. I still have the letter and the money order stub.

Per the Fair Debt Collection Practices Act, I am requesting validation of your claim, to include the following a copy of the original signed contract with my signature for this alleged debt. I cannot respond to your claim until validation in the form of copy of the original signed contract with my signature has been submitted. Receipt of this letter is being officially timestamped by the USPS.

FYI: from a quick Google search, this appears to be a super nasty firm…be careful when dealing with them. Read the info at the following link very carefully:
http://www.budhibbs.com/collectorpages/cohen_slamowitz_cmts.htm

Other links:
http://cohenslamowitz.com/
http://www.consumeraffairs.com/legal/ny_cohen_slamowitz.html

If you settle, get all terms in writing BEFORE you pay…which states that the account will be "Paid in Full." Once you get that, then pay. Keep documentation in your perm. records. Don’t give them your checking account numbers. Assume that any promise that is not back up in writing is a lie. Avoid getting on any sort of monthly payment plan.

At this point, just have them validate the debt. How old is this debt? Is it past the statute of limitations?

Also any *offer* you make or if they accept should be in writing, not verbal and you should never send them a check or give them banking info over the phone. Send a money order.

Some collection companies will not settle for less either. I don’t know about the one you are dealing with, but some of the ones I have dealt with want the full amount or they will take you to court.

My husband had to go to court for one and they added more money, plus annual interest.

Just something to think about.

Best of luck!

I used this one to reduce rate to 6% on my cards. They did not charge fee up front.

http://www.moneymanagement.org/