Need Advice On Making Things Right with HSBC

[Keith_Strohm]

   All,

   I have been lurking around MyFico.com for over two years and have used the advice and information I have discovered from y'all to help rebuild my credit score over 100 points! This has been a very challenging 4 years for me, as both my wife and I have experienced an extended period of underemployment and unemployment. We were making real headway credit-wise in 2008, but both lost our jobs at the beginning of 2009. We came very close to declaring bankruptcy but have just both found stable employment with good paying salaries and benefits. I am now going through a very comprehensive attempt to rebuild my credit, and believe that MyFico.com has given me the tools to do that. However, I do have a particular situation that I am hoping to get some feedback on:

   I have a Revolving Account with HSBC that I opened in February of 2006. It is currently at $2827. I had a completely clean payment history up until August of last year. Because of our financial difficulties (both my wife and i being out of work for 8 months), this account has become seriously behind (over 120 days late). It is currently listed on my Credit Report as Bad Debt/Collections, but it does not appear as a line item under Collections on my report.

   We are still getting ourselves on our feet financilly and making payment arrangements to catch up with all of our creditors. I guess I'm wondering what would be the best approach to make things right with HSBC. I can't PIF right at the moment, but I can make a significant payment right now ($1000+) with the promise of making $200 payments every two weeks. Is it better to try and work out a deal with HSBC where I make this arrangement in exchange for them deleting my lates? Or should I just contact them and set up the repayment plan with the idea of sending out a GW Letter when it is PIF? I'm torn here, as i know that I have the most "leverage" when they are still waiting for me to pay something. Any thoughts?

   Also, does anyone have any idea as to what department/whom i should try and contact at HSBC to insure the best chance that we can work out a win-win solution for everyone involved.  Thanks so much for your help!

[guiness56]

I have always had good luck with HSBC.  Call them and talk with them.  The CSR should be able to help or point you in the right direction.  Do you know if they still own the account?

If it is 120 days late you are close to them COing the account, which you do not want.

Even though it is not showing up under collections, FICO sees it as a collections and dings you for that.

[Keith_Strohm]

   Right now it is still showing a balance of 2827 under account, so i think they still own it. If I call them, should I ask for a Pay For Deletion?

   Keith

[guiness56]

You can ask for a PFD or if you want to keep the CC, ask them to rehab it back to good standing (remove all negative information) and reopen the card.