Got a PFD response...NEED YOU GUYS HELP!

[800_ismygoal]

Hi Everyone,

So in my struggle with Fair Collections & Outsourcing they replied back to my faxed PFD (within an hr!) but I'm unsure how to handle from here.  This is my first one!

So my balance is $1672.  The debt is valid, and I have disputed it twice (its from 2008 and I wanted to see if it would slide through their system and just delete, but it didn't) SO I sent them a PFD  for $600.  They countered with $668 (40%) and offered to update my account as "SETTLED".  Now I am going through this because FHA loans requires all collections to be paid in full and this is the only one on my credit report.  If I give in and accept this offer will my credit score go down once it updates as settled or will it have no effect?

My Fico score is 714 (and rising) and I worked REALLY hard for this and don't want to do anything to bring it down before I go and apply for a FHA loan. 

Suggestions?

Thanks in advance, I'm in panic mode right now .

[guiness56]

Counter-offer with a higher payment for reporting settled in full.

[800_ismygoal]

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@guiness56 wrote:

Counter-offer with a higher payment for reporting settled in full.

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Soooo their term "settled" does not mean settled in full??!!  Will my score go down?

[guiness56]

I don't know what their offer entailed.  Settled should be settled but I've seen where they go after the remainder and/or issue a 1099-C.

Settled for full balance looks better on a manual review than settled for less.  FICO doesn't care.