Paying off checking account through collection agency

[Anonymous]

Hi

I have an old charged off checking account through my local bank. It's been with Capital Accounts agency for several years and listed on my credit report for less than the actual amount of the debt. Now I could probably settle the debt with the collection agency for even less money. This I know. But what does that do for trying to do future business with my local bank? Furthermore. It is likely the charged off account was reported to Chex Systems. So in a pretend scenario, what if I settle with Capital Accounts. Then later try to open a checking account with the bank. Get denied. Will I get hit with the original full amount of the debt? If so, how can I use the amount I settled with in the equation? Thanks!

[RobertEG]

The bank will likely retain its own records of prior customer delinquencies.

They could consider the delinquency itself to be basis for future decisions, as well as the lengthy period after delinquency before your eventual repayment.  It is thus not possible to tell the extent to which it might effect their later decision making.

If you do pay and they still owned the debt when you pay the debt collector, then the debt collector will notify the  bank.

However, if the debt collector has purchased the delinquent debt from the creditor, then the creditor should have updated their reporting to show $0 owed to them, and the debt collector/new owner would be under no obligation to notify the bank of subsequent payment.

If you enter into any settlement agreement with the bank or debt collector, as long as it clearly is acceptance of discharge of the debt, then the debt becomes $0.  No, they cannot later demand any additional payment on a debt that no longer exists.