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@Anonymous wrote:
Is a settled account, meaning I settled with the collector for less than full balance legally supposed to report my balance as zero?
Legally? Robert please..
Yes settled accounts must report a 0 balance as there is no further balance to collect. The creditors usually update the balance with the payment amount then update it again to a 0 balance with the notations settled legally for less than full balance.
The current balance on an OC account is the current amount of debt owed to them.
Yes, if your agreement clearly specifies that the payment discharges ("settes") the debt, then the creditor is required to update the current balance to $0.
It is not uncommon, however, for creditors to update settled accounts in two processing steps.
Their accounting office usually posts the amount of the payment, and that can trigger initial reporting of only the amount paid.
Subsequent processing of the account that then records the payment as legal discharge of the debt can result in subsequent update of the balance to its final value or $0.
It is prudent to give until the next reporting cycle before assuming they did not accept the payment as full settlement of the debt.