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Legally paid in full for less than full balance

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Woodyou812
Valued Member

Legally paid in full for less than full balance

So I had a Chase account that, thanks to a series of events I like to refer to as Hurricaine Lauren, went to collections.  I settled for less than the full balance, and now on my credit report it says "Account legally paid in full for less than full balance."

 

I spoke to Chase, they are telling me there is a remaining balance of $592.09, and if I pay that they willl mark it as "Charge Off Paid In Full."

 

Do you think it's worth it for me to pay the $600, or am I better off doing nothing?  Think I can do a Paid For Deletion kind of deal?

 

Thanks in advance

Message 1 of 5
4 REPLIES 4
llecs
Moderator Emeritus

Re: Legally paid in full for less than full balance

Welcome to the forums!

 

It reports $0 on your CRs, right?

 

Per FICO scoring, a paid CO is scored on par as a settled account. Both are negatives, but having the status change won't help your FICO score any. However, some companies are open GW requests and paying it might improve your odds of getting it deleted or the lates and comment removed, which would help your score. Your call. The only other thing to consider in settled accounts is the 1099-C they could issue. IRS sees the amount settled as income and that can hurt. In your case, it is less than $600 and won't be reported.

Message 2 of 5
John060675
Valued Contributor

Re: Legally paid in full for less than full balance

Definitely try a PFD, since it cannot hurt and can only help.  To add to the response given above, it definitely will not help your FICO score to pay the collection in full if still on the report, but if you are trying to make a large purchase (mortgage) it can affect this.  I am in the initial process of looking to buy a home and one of the first things the person asked was whether I had any unpaid collections, and if I did that they need to be taken care of.


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Message 3 of 5
Woodyou812
Valued Member

Re: Legally paid in full for less than full balance

I spoke to someone on the phone yesterday, the most he was willing to offer was to change it to a paid CO.  I told him I was going to do some research, at which point he got a little angry with me.  Then he gave me his direct line.  So, and I'm taking a guess here, he gets paid a comission on collections and wanted to secure my funds right there.  I had asked if I could get some information in writing, he said that wasn't in his department, and then kept pressuring me to pay right away.

 

I will definitely go the PFD route.  I hate the idea that I settled anyway; I'd prefer to take care of the entirety of the debt due to my OCD anyway.  I've read about people sending PFD requests via email, telephone and mail; which do you think is the best route?  Or all 3?

 

Thank you for your assistance

Message 4 of 5
llecs
Moderator Emeritus

Re: Legally paid in full for less than full balance


@Woodyou812 wrote:

I spoke to someone on the phone yesterday, the most he was willing to offer was to change it to a paid CO.  I told him I was going to do some research, at which point he got a little angry with me.  Then he gave me his direct line.  So, and I'm taking a guess here, he gets paid a comission on collections and wanted to secure my funds right there.  I had asked if I could get some information in writing, he said that wasn't in his department, and then kept pressuring me to pay right away.

 

I will definitely go the PFD route.  I hate the idea that I settled anyway; I'd prefer to take care of the entirety of the debt due to my OCD anyway.  I've read about people sending PFD requests via email, telephone and mail; which do you think is the best route?  Or all 3?

 

Thank you for your assistance



If unpaid, send a PFD for sure.

 

Preferably by mail. If your state has firm, concrete and tested laws on the books about the validity of e-communications, then e-mail is OK (there had been instances in the past of courts dismissing e-mails due to the perceived thought of forgery, though it is easy to prove in this day and age).

 

Never call in a PFD. Here's a sample dialog:

 

You: Mr. CA, I'll pay $x for this collection in exchange for deletion.

CA: Sure! Give me your personal bank account info or your credit card number.

You: Thanks!

...weeks pass with no deletion. You call them back.

You: What about our agreement?

CA: What agreement?! We'd never agree to anything like that.

 

Message 5 of 5
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