URGENT - NEED ANSWER BY 5 PM, 9/30/2010 - SHOULD I SETTLE WITH CC?
I just received a phone call from Collect Corp regarding a Bank of America credit account in collections. The representative offered $1300 to settle a $3350 balance. I am currently playing $85 a month on this account in an effort to eventually pay it all off. The account was charged off in the summer of 2008, and is reflected as charged off on my credit report. The Collect Corp representative told me if I pay the $1300 Bank of America will list the account as "Paid - less than full amount" on my credit report. So, these are my questions:
1. Should I believe what the collection agent says? How does he know how Bank of America will report that account?
2. Should I settle, or is it better to pay it all off?
3. Is "Paid - less than in full" better to have on my credit report than "Charged off"?
Please help me! I was told that this offer is only good for today, and I want to call him back before the close of business, hopefully after getting some advice from you all. Thanks.