CAP1 Counter to Settlement Offer

[Tabou82]

So I’ve been gardening and working on rebuilding my credit and my first step has been to settle some old charges that are currently affecting my credit utilization.

I had a CAP1 chargeoff occur in 2011 for $793.00 (amount includes fees) that I offered a 25% settlement ($198) as full and final settlement of the debt via the Executive Office. I asked them to report the debt as settled/paid without any additional comments. After two weeks or more, a rep finally calls me back and states that he will pass my concern along to the  appropriate department and call me back.

Well today he calls and says that CAP1 will settle for 40% of the debt in the amount of $317 and will report the status as charged-off and settled or PIF and settled if  I pay the full amount. Is this correct and I’m overreacting?  Can they report both? Is this a good offer?

I told him that I would like to counter their offer and requested that he had a rep from the actual department contact me. I’m not really worried about the amount but more so the reporting and comments.

Thanks for any insight.

[luckelle]

In my experience that's what they put on your report once you pay in full. If there excepting less than full amount that's what they'll place generally whether you pay the less or the full owed amount. So your question is it fair deal? I can't really answer for you but if there going to put payed charge-off then I'm not paying the full amount. It might look better if you pay the full amount because some creditors use manual review and like seeing things payed in full vs settled

[luckelle]

I know I went back and forth with my thoughts but there are pros and cons to settling and paying less. If it's not to high a cost for me I just pay all of it and hope it looks better to a creditor later in the years. If you follow were I'm going with this.