Credit Card Charge Off - Settle with Paid/On-Time or Delete Entry - Help Please.

[Anonymous]

I have a $3k card that was charged off by a local credit union a few years ago and they report charged off every month. This is really hurting my score and I can pay it back. Does anyone have any tips as far as getting an agreement in place for paying a portion or all of the balance for a trade of having the accoutn deleted, or all derogatory marks made as paid on time? I have written up something but not sure if I should share it publicly. 

Thanks in advance!

[gdale6]

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@Anonymous wrote:

I have a $3k card that was charged off by a local credit union a few years ago and they report charged off every month. This is really hurting my score and I can pay it back. Does anyone have any tips as far as getting an agreement in place for paying a portion or all of the balance for a trade of having the accoutn deleted, or all derogatory marks made as paid on time? I have written up something but not sure if I should share it publicly. 

Thanks in advance!

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You can share just redact any personal info and banking info from the letter, you can just put XXXX or something in its place.,  I am going to give you the links to the PFD threads so you can review and get an idea on how to write an offer. If you are trying to get them to remove the CO then I would offer full payment they most likely will not give you a discount and removal of the TL.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

[bodybuilder510]

Paying it off at this point to avoid further collection and this will be your best route. Satisfying the debt will 0 out the balance and stop it from reporting monthly so your scores can heal. Original creditor is known not to grant GW and PFD. Avoid it being transferred/sold and having to deal with a new collection on your reports. If you have the money to pay in full or settle is under your discretion.

[Anonymous]

Okay, I made an offer of approx $800 on a balance approx of $5000 which was charged off a few years ago. They said they would accept $2500 and report as settled for less than amount owed. This doesn't really do me any agood. What should I counter with to ask for "paid as agreed, or remove all tradelines?"

[Anonymous]

Not much chance of getting a deletion agreement for less than the full balance. Thats the equivalent of not only asking them to eat the difference, but to eat crow as well. Just ain't gonna happen.

If you want deletion, offer to PIF for it.

If you want it marked PIF, offer them something close to their counteroffer of $2500.

[bodybuilder510]

Ask what it's going to take to get it off your reports. You want it to be paid in full or settled in full. 0 balance. They may not want to send it in writing. Worse case scenario they reject PFD and you goodwill the bank after the balance is satisfied.

[redbeard]

It never hurts to ask for what you want, but realize the first answer will always be 'NO'.

Now, you also have to think about what you are asking for.  They are willing to take less than you owe them, but then accurately report it on your credit report.  You are asking them to take less and then remove it.  They will not / can not mark it as paid in full unless it was in fact, paid in full.  They cannot, or at least should not, report inaccurate information.  They can remove the tradeline if they want, but ask yourself, why should they.  They will not do it easily.

To be honest, unless you can show good reason, I doubt you get a credit union to delete the tradeline.  

Dan

[RobertEG]

The creditor does not have to report inaccurately in order to show the equivalent of paid in full.

When the creditor accepts payment, regardless of the amount, as satisfaction of the debt, the debt is reported as paid, and the balance is updated to $0.

The creditor then has the option of additionally reporting, as a special comment, the terms of the satisfaction of the debt if paid/settled for less.

They are not required to provide that additional special comment.

Absent their reporing that they setttled for less than the full amount of the debt, the reporrting of paid along with an updated balance of $0 makes it appear to anyone reviewing the credit report the same as if it had been paid in full.

Absence of additional information that they accepted less than the full amount of the debt is not inaccurate reporting.  It is done every day.

[Anonymous]

Well currently it is a lose-lose situation and they have not received anything. I reached out and made this offer, so I would assume they would be willing to accomodate by removing any deregatory marks in trade of some sort of payment weather it be in full or otherwise. Any speecific items I should bring up with my counter?

[Anonymous]

Should I counter with $1500 and ask for PFD?