MCM Settlement

[Anonymous]

So I need some advice at this point.  MCM reports these collections every month.  They are not set to fall off for another 2-3 years.  I can't afford to have these continue to report for another 2-3 years.  I plan on applying for a mortgage in a year or so and need to shop for a car within the next 6 weeks.  Would it be smart to settle these (for 40% or so) just to have it stop reporting as open?  They are for 2 NFCU credit cards which are also stopping me from continuing my relationship with NFCU which is another reason I'm thinking about taking care of it.  Any thoughts?  

[TRC_WA]

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@Anonymous wrote:

So I need some advice at this point.  MCM reports these collections every month.  They are not set to fall off for another 2-3 years.  I can't afford to have these continue to report for another 2-3 years.  I plan on applying for a mortgage in a year or so and need to shop for a car within the next 6 weeks.  Would it be smart to settle these (for 40% or so) just to have it stop reporting as open?  They are for 2 NFCU credit cards which are also stopping me from continuing my relationship with NFCU which is another reason I'm thinking about taking care of it.  Any thoughts?  

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If it were me I would most definitely pay the collections.

NFCU has been known to let people back in who pay them back... but since you are paying a CA I'm not sure how that would work.

As far as the collections... they would report as paid, stop updating monthly, and you could start a GW campaign.

Any mortgage app down the road will require they be paid anyway.

[Anonymous]

 This was my line of thinking.  In speaking to someone at NFCU, they said that they could restart my relationship with them once I've resolved these charge-offs, but it would have to be done with the CA since they sold the debt.  I'm just hopeful that they are okay with a settlement as opposed to PIF.  MCM refuses to PFD.  Thanks for the input.

[Anonymous]

Apparently, the person I spoke to at NFCU last month was mistaken.  NFCU now tells me that since they took a loss on the accounts, I can never work with them again.  This is truly disheartening as I probably wouldn't have settled with MCM quite so quickly or for nearly as much money as I did.  

I am now out the $1200 I paid to MCM (sort of).  I imagine that MCM now reporting as paid will help me in the long run, but it stings at the moment.  I have to purchase a vehicle within the next month and was hoping that I would be able to get a somewhat decent rate with NFCU.  Capital One had approved me for an auto loan back in January, but I didn't jump on it because I wasn't 100% ready to buy.  2 weeks ago, they declined my application.  I can only imagine it's because of 2 things:

1) I had an old Cap1 Secured Card that was C/O that just showed up from a collection agency.

2) I tried to dispute an old furniture account because the dates were incorrect. They came back and updated with the correct dates and added the balance information which effectively added another $929 to my delinquency. I have since settled this in exchange for them removing the C/O and reporting Paid in Full.

I am hopeful that I can get Cap1 to reconsider after the MCM accounts and the furniture account update the CRAs (which should be done within the next week or so).  MyFico already alerted me to the MCM updates on EQ.

Any other ideas on what I can do to have Cap1 reconsider?  Is there a phone number for their Auto Loan department?  RoadLoans approved me, but the rate is like 18% and I'd like to see if I can get lower than that.  The rest of my credit isn't horrible except for 2 defaulted SLs that are in rehab until the end of the year.

[Anonymous]

Well, that bites! Sorry to hear that.

You might try SDFCU.

[Anonymous]

Does SDFCU use Chexsystems?  I have 2 older accounts on there that I am trying to clear up now.