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03-28-2009 08:25 PM
I have a DISC that DOFD is 12/02. It is in CO status, and should fall off at the end of the year.
I have been paying the CA for over a year, but still owe 1800 or so.
I know this may be a terrible question to ask, as I don't want to look like I am irresponsible, but...
If it is going to fall of anyway, would it be better to PIF or settle? Reason I ask is, I'm wondering if DISC would blacklist me later if I settled.
And if DISC blacklists, can any of you tell me for how long?
I REALLY regret letting this card fall behind. And I'm hoping for a future with them...just want to make the right choice now.
03-29-2009 05:21 AM
When did this account go to outside collections? Has it remained with the same company or been transferred in the past (one CA sold to another)? How long have you been paying?
I am guessing that if the CO is almost 7 years old that Discover has nothing more to do with the CA at this point because they sold the bad debt for a small percentage of the balance to CA years ago. This is why CA's make so much money. When you finally "honor" your debt, and pay it to the CA, Discover got a pitance years ago and the CA got the full or settled balance.
Are you able to PIF lump or speaking of payments? If you can lump, you may be able to get a PFD (for less than balance) now and not wait till end of year. The CA's generally like a larger lump if they can get it, especially if they can see this is going to drop from your credit, which is their leverage.
Technically speaking, the CA will come off your CR in December whether you have paid the account off or not. Depending on your state laws and SOL, you may still be liable (and therefore able to be sued by the CA) since you have been making payments currently. I believe that most SOL's are based, at least in part, on the DOLA.
However, I'm not sure if this is the DOLA for OC or if DOLA to CA would apply now. Anyone else got that answer?
03-29-2009 02:14 PM
Should have been a bit clearer...
DISC is reporting, not the CA I've been paying. However, the TL updates every month with my pymt so does this mean DISC still has a hand in it?
I am prepared to settle lump sum, or PIF in portions. The CA has offered me a settlement before, but I was always scared to take it, fearing that it would forever blacklist me with DISC. So, I've been working hard the past 18 months to pay it down...
Also, does anyone know if there would be a difference in future chances with DISC whether I PIF or settle?
03-29-2009 04:52 PM
Anytime you settle for less than owed would have a greater chance of future hard feelings on the part of the creditor. However, how long Discover will track this, I don't know. Macy's has their account data to the 1960's in their database, or so I have been told (I know they have stuff to 80's).
You might try to see if you can get the OC to recall the collection and accept payment direct. A sort of GW collection. Explain your hardship and how you really want to make good and want to pay the full accountsee if they will accept a direct payment. If they have only "assigned" the collection, they still own the debt. Once they sell the account, then they will not own it and you cannot ever negotiate with them directly.
The CA most likely doesn't care whether or not you have any future with DISC, only that they collect the account and get theirs.
03-29-2009 05:01 PM
Great idea...but I wonder if making direct contact now with Discover would affect the fall off dates?
Feel like I'm treading on thin ice here calling them after so long...
Thanks for your thoughts!
03-29-2009 05:10 PM
No. This is calculated from your DOFD which cannot be re-aged.
The difference now being that if OC still owns debt, they have an interest in collecting it. If you PIF, they will like that more than settle for less. If you plan to or hope to get in with them again, logic dictates that doing all you can to get on their good side, or at least as close as possible is in your interest.
Personally, I would seek every opportunity to pay to the OC and have CA recalled if at all possible. But, that is me
03-30-2009 08:14 AM
My own experience w/ Discover is that they do NOT black list. I settled on an acct and was able to get a card a few years later (Feb 08). Limit started at 1.1k, took a hard to get a CLI to 3.5k @7 months, then soft to 4.5k @13 months. Here's a snapshot from an old tri-merge report:
Date reported: 10/04
Date opened: 04/92
Limit: 1500 Balance: 0
SETTLEMENT ACCEPTED CLOSED OR PAID ACCOUNT
03-30-2009 12:12 PM
I hope I didn't sound like I was trying to avoid my responsibility...it's just that I am working on all of my credit and settling is certainly more financially feasible. I guess I should wait maybe 2 years? You give me hope!
03-30-2009 06:52 PM
I don't think my Disc acct ever went to a CA, tho. I'm not sure if there's a big difference between whether or not the OC collects or the CA, and if they blacklist. I just know they took me back w/ open arms -- and an instant approval.