02-15-2012 03:09 PM
Has anyone dealt with them before? I just got a settlement offer in the mail with them. I know it's for the lovely First Premier Bank credit card. They are letting me pay them four installments of $57.20 which is totaling to be bout $228.81 to have this debt marked paid in full from the original balance which was $457.61 Is this an offer I should take? I want to make sure this is at least reported on my CR in a good standing if I can't get it removed.
02-15-2012 07:53 PM
02-16-2012 02:29 AM
A settled debt has only one status. Paid. It doesnt matter if the debt was paid in full or settled for less than the full amount.
If it is accepted as satisfaction of the debt, then it is paid. There is no such thing as a "paid in full" status.
When a debt is satisfied for less than the full amount, that fact is separately reported by way of a special comment code.
What they are apparently offering is not to report the method of satisfaction by not additionally reporting the special comment code.
Paying a collection never makes it in "good standing." It does not remove the collection.
That is not to say that their offer is not a helpful concession. Paid for less special comments are a negative item in and of themselves, indicating to others that you did not fully satisfy a prior debt.. It is a black mark well worth avoiding. Just dont let them confuse you with how they will report. Get a specific promise not to report that payment was for less than the full amount.