Loan question

[heyarrnold]

Hi all,

not sure where to post this.

Any who, I currently have invisalign. I have 4 more months left with the procedure. I went ahead and allowed my dentist to finance the charges. No HP was made, and the account is with 0 interest. So I didn't really see any downside to that as this loan would give me a more diversified credit profile.

I called in today to update my payment account. They told me that I qualified for a settlement? My account is paid every month and I've never been late. Not exactly sure why they're wanting to settle.

Any who, they offered a settlement that is $800 less than the full amount that I owe. If I took this settlement, would it bet reported to my credit reports as debt settled rather than paid as agreed?

I can pay the entire amount in full right now; with or without the settlement. I just want the payment history to show up.

[chalupaman]

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@heyarrnold wrote:

Hi all,

not sure where to post this.

Any who, I currently have invisalign. I have 4 more months left with the procedure. I went ahead and allowed my dentist to finance the charges. No HP was made, and the account is with 0 interest. So I didn't really see any downside to that as this loan would give me a more diversified credit profile.

I called in today to update my payment account. They told me that I qualified for a settlement? My account is paid every month and I've never been late. Not exactly sure why they're wanting to settle.

Any who, they offered a settlement that is $800 less than the full amount that I owe. If I took this settlement, would it bet reported to my credit reports as debt settled rather than paid as agreed?

I can pay the entire amount in full right now. I just want the payment history to show up.

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What company did you get the loan with? I don't understand why they're doing this if you're paying it on time each month with no issues. 

I'd pay the whole thing just to be safe.

[heyarrnold]

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@chalupaman wrote:

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@heyarrnold wrote:

Hi all,

not sure where to post this.

Any who, I currently have invisalign. I have 4 more months left with the procedure. I went ahead and allowed my dentist to finance the charges. No HP was made, and the account is with 0 interest. So I didn't really see any downside to that as this loan would give me a more diversified credit profile.

I called in today to update my payment account. They told me that I qualified for a settlement? My account is paid every month and I've never been late. Not exactly sure why they're wanting to settle.

Any who, they offered a settlement that is $800 less than the full amount that I owe. If I took this settlement, would it bet reported to my credit reports as debt settled rather than paid as agreed?

I can pay the entire amount in full right now. I just want the payment history to show up.

---

What company did you get the loan with? I don't understand why they're doing this if you're paying it on time each month with no issues. 

I'd pay the whole thing just to be safe.

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I do not either. I currently "owe" $3,500. The settlement is for $2,700.

I did it with Western Dental. I HATE them, but they have an office where I live and where I'll be moving to. So it was super convenient.

I do not understand why they want to settle. I have auto pay set up on the account.

[Skye12329]

I would suggest checking your credit report just to see if they are reporting and if they are to see if it shows the payment history

I then suggest calling and asking why your being offered a settlement.

[heyarrnold]

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@Skye12329 wrote:
I would suggest checking your credit report just to see if they are reporting and if they are to see if it shows the payment history

I then suggest calling and asking why your being offered a settlement.

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I checked my reports. The account is being reported as "paid as agreed"  and the payments history shows up as OK.

[Kenny]

If it's being reported, I wouldn't take the risk for 800 bucks. If it's reporting now, I would wager it would report settled, but if that interests you, you can always keep asking them questions in this manner of how it will report, will it be reported, etc.

[RobertEG]

Creditors sometimes need immediate cash and dont want to wait for their accounts receivable to be paid.

That is the primary reason why factoring companies exist.  They offer to pay instant cash for accounts, albiet at a small discount below the full debt, thus providing instant cash to the creditor.

They may be doing their own form of ""factoring" of their receivable assets by offering you a discount for filling their coffers now rather than waiting.

If you get their additional agreement not to report settled for less, then there would be no credit reporting issue,  I would get that agreement if you wish to settle.

However, be aware that the difference is over $600, so it will become cancelled debt which they must report to the IRS via a form 1099c, and you will have to pay taxes on that cancelled debt.

I would accept provided they agree not to report paid/settled for less to the CRAs.

[heyarrnold]

Thanks for the responses everyone. I am just going to pay the amount in full. I do not need to settle and do not care for the $800. It would be nice to save the amount, but I rather not risk a settlement reporting!