Debt settlement?

[Anonymous]

Hello,

I have an outstanding balance of late fees on my car loan. It is showing in my credit as the amount owed but showing the account in good standing/ current. The car itself is paid off for over a year except this late fee. They offered to let me pay half of it but said it would show as settled on my credit. Is that true since it really isn't the original loan? They are holding the title until it is paid.

Thank you

[RobertEG]

If your account agreement provided for late fees, then they become debt owed to the creditor.

Yes, they can hold that the debt owed to them is not discharged until the additional fees are paid.

You can avoid any issue of reporting settled for less either by paying the full, remaining amount, or by offering a settlement for less with the additional provision that they agree not to make any comments stating paid/settled for less.