How Should I Leverage A Settlement Offer From FRS

[Anonymous]

Greetings!

I had a Credit One card from about 4 years ago that I basically blew off for some unknown reason, it has been reporting as a collection account by LVNV Funding.  I just recieved a settlement letter from Financial Recovery Services offering to sqaush $505.07 for $203.03.  I am able to pay this off right now but just a few days prior, I was thinking about looking into the possibility of paying it down and having the card reinstated (and having the account show on my CR as "current").  My goal was to come up with a way of taking care of the account with the best possible outcome for my credit reporting.   Should I just send payment and be done with it?  Or, can I negotiate a payoff and delete from my CR?  Is making consistent payments with the change at reinstatement a good option or even possible (I had done it with an old credit card years ago)?  Btw it's only one of two negatives on my credit, right now I'm at around 629 and have cards paid on time but high balances I'm paying down, a TFS car note with 3-30 day lates from a year ago (money got tight) and a Ch 7 from 7 yrs ago.  I'm just trying to boost my credit as best as possible and position myself for a house.

[RobertEG]

The debt collector will not be able to agree to provisions regarding changing terms on your account agreement with the original creditor.

You will have to contact the OC if you wish to negotiate terms that apply to your account with them, such as having the account reinstated.

Reinstatement is usually very difficult to obtain on an account that has either reached the stage of delinquency where it has either been charged-off or referred for collection.

Additionally, some assignment agreements with debt collectors prevent the OC from accepting payments or negotiating with the consumer while the assignment contract is in force.

[DollyLama]

A try for a pay for delete is the best, some will work with you, some won't. Just be sure you know who exactly holds the collection. If LVNV is reporting, where does Financial Recovery Services fit in here. You don't want to pay FRS, and still have a collections reporting on your bureau from LVNV, rather you are able to pay for delete, or negotiate a  settlement. 

[Anonymous]

Thanks for the replies.  I had put this aside for a while, but I'm about to go ahead and try to resolve this tomorrow.  Financial Recovery Services apparently is an agency that collects for the current creditor, which is LVNV Funding.  According to their site:

 "Financial Recovery Services does not report to any credit reporting agencies. However, we do report the status to our client. Once your final payment has been processed and reported to the creditor , your credit report will be updated by the creditor to reflect settlement for less than the full balance for a settled account and paid in full for a paid in full account."

Should I therefore contact LVNV Funding?

[howellco2]

I would contact lnv funding and try for a PFD

[Anonymous]

It cannot be reinstated. Paying in full or even settling will prevent any litigation. You do not want to be sued. If you do pay, ask for PFD