We had a mortgage wtih them in 2005 that was settled for less than the amount owed. They waived the pre-payment penalty of $2994 and now it is showing as bad debt/collection. In the comments section it says "account paid $0 balance, settled for less than amount owed" I sent for a payoff statement because I thought if I paid this amount they could change the status to PIF. However, when I recieved the payoff statement today it is $6774. How could they do this? I understand there are certain fees, but they have doubled the original charged off amount. What should I do now? I am not sure what my next step should be. I was on the phone for half an hour trying to get to the bottom of it (some guy in India). He could not tell me anything. Thanks for any advice!