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Regular Contributor
tld409
Posts: 220
Registered: ‎03-21-2012
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Opinion about paying remaining balance after CO settlement

I contacted a CA after sending a goodwill request. The account is for an old Credit One Bank card that was settled for 1/2 of the full balance over a year ago. The CA said that they only delete if the account was paid in full. I asked if they would delete if I paid the other 1/2 of the balance and I was told yes. I asked the CA to draft a letter proposal first before I agree to this.  This account is scheduled to fall off in the fall of 2014.  Is this a good idea to pay the remaining balance now for deletion?  I only have 1 other medical CA  account scheduled to fall by the end of this year (2013) and an  old GM Financial account scheduled to fall off next year as well.

 

 

Thank you

tld409

Starting Score 630 Current:EX:706(09/01/14); EQ08: 747(10/10/14);TU:748 (10/13/14):Goal Score: 750 across the board
Sallie Mae World MC 5k; Chase Freedom 3.5k; CareCredit 13.2k; Amex BCP 10.3K; Amex BCE 12K; Amex PRG; BOA123 Visa Sig 20k; CapOne WMC 7.5K; CSP Visa Sig 5K; Slate Visa 3k; Citi Simp Visa 6.9k; CFCU Visa 15k; Discover IT 4K; JCP MC 8K; Macys Amex 7.5K/2k; PSECU Visa/PSL 20/20K; SamsClub MC 20k; Walmart 10k;
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guiness56
Posts: 22,406
Registered: ‎01-17-2008
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Re: Opinion about paying remaining balance after CO settlement

That depends entirely on what you want in the end.  Are you looking to raise your score, get a mortgage etc?

 

If you want it removed, and you can pay it, the by all means, do it.

 

Are the remaining negative TLs paid or unpaid?  Paid and unpaid collections are scored the same by FICO.  As a collection.

Regular Contributor
tld409
Posts: 220
Registered: ‎03-21-2012
0

Re: Opinion about paying remaining balance after CO settlement

I guess I should have provided more info# about my situation. I am just trying to improve my credit in general; however, I do plan to apply for a mortgage at the end of this year or early next year.

 

 In addition to this negative item,  I  have 1 med collection (paid in full) due to fall off in 08/13 and the GM Financial auto loan  paid in full (July 2007) after being 60 days late;  account is incorrectly reporting a 90 day late and charge off with paid off status. I am working to have this corrected.  I have no other negative accounts.

 

 The following are positive accounts I rotate use with all cards and consistently keep utilization  at 9% but occasionally I am up to 14% which I am sure is OK. I am planning on gardening for the remainder of the year.

 

Positive tradelines: 

Macy's (oldest account): 2500 limit (0 balance)

Capital One (opened 03/12): 500 limit (0 balance)

JCP (opened 04/12): 600 limit (0 balance)

First Savings CC (opened 06/12): 600 limit (0 balance)

AMES Green (opened 10/12): NPL

Discover More (opened 10/12): 1200 limit (0 balance)

Walmart (opened 10/12): 600 limit ($50 balance)

Citi Simplicity (opened (01/13): 4800 limit ($45 balance)

Auto loan (opened 07/07): will be paid in full 03/13 - no negative items

2 Personal Loans with local finance (03/12): $2500 paid off 12/12 and (12/12): $3,600-plan to pay off by 03/14

 

 

Thank you

 

Starting Score 630 Current:EX:706(09/01/14); EQ08: 747(10/10/14);TU:748 (10/13/14):Goal Score: 750 across the board
Sallie Mae World MC 5k; Chase Freedom 3.5k; CareCredit 13.2k; Amex BCP 10.3K; Amex BCE 12K; Amex PRG; BOA123 Visa Sig 20k; CapOne WMC 7.5K; CSP Visa Sig 5K; Slate Visa 3k; Citi Simp Visa 6.9k; CFCU Visa 15k; Discover IT 4K; JCP MC 8K; Macys Amex 7.5K/2k; PSECU Visa/PSL 20/20K; SamsClub MC 20k; Walmart 10k;
Valued Contributor
p-
Posts: 2,634
Registered: ‎06-05-2008
0

Re: Opinion about paying remaining balance after CO settlement


tld409 wrote:

I contacted a CA after sending a goodwill request. The account is for an old Credit One Bank card that was settled for 1/2 of the full balance over a year ago. The CA said that they only delete if the account was paid in full. I asked if they would delete if I paid the other 1/2 of the balance and I was told yes. I asked the CA to draft a letter proposal first before I agree to this.  This account is scheduled to fall off in the fall of 2014.  Is this a good idea to pay the remaining balance now for deletion?  I only have 1 other medical CA  account scheduled to fall by the end of this year (2013) and an  old GM Financial account scheduled to fall off next year as well.

 

 

Thank you

tld409


IMHO, if you can pay in full now to get it deleted go for it, unless it's such a huge amount that it's worth letting it age off.

  8-12-14: FICO EXP: 797 - EQU: 734 - TRAN: 739 - AVG: 757 - +207 points from JUN 2008 - MY CREDIT JOURNAL

Mega Contributor
RobertEG
Posts: 18,137
Registered: ‎03-19-2007
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Re: Opinion about paying remaining balance after CO settlement

[ Edited ]

In my opinion, such a process borders on the improper.

Whether you settled the debt for the full amount, or they accepted less, the debt was satisfied.  You have no debt that they are authorized to collect, period.

 

It kinda smells of a payoff to delete accurate reporting. That raises bushels of legal issues, not the least of which is assertion by another of discrimination if they are denied a payoff under similar circumstances.  If I were a debt collector and chose to conduct such a practice, I would not leave a paper trail.......

Regular Contributor
tld409
Posts: 220
Registered: ‎03-21-2012
0

Re: Opinion about paying remaining balance after CO settlement


p- wrote:

tld409 wrote:

I contacted a CA after sending a goodwill request. The account is for an old Credit One Bank card that was settled for 1/2 of the full balance over a year ago. The CA said that they only delete if the account was paid in full. I asked if they would delete if I paid the other 1/2 of the balance and I was told yes. I asked the CA to draft a letter proposal first before I agree to this.  This account is scheduled to fall off in the fall of 2014.  Is this a good idea to pay the remaining balance now for deletion?  I only have 1 other medical CA  account scheduled to fall by the end of this year (2013) and an  old GM Financial account scheduled to fall off next year as well.

 

 

Thank you

tld409


IMHO, if you can pay in full now to get it deleted go for it, unless it's such a huge amount that it's worth letting it age off.


Thanks p-.    The amount would be a little of $300 which is the half of what I settled for previously. 

 

Starting Score 630 Current:EX:706(09/01/14); EQ08: 747(10/10/14);TU:748 (10/13/14):Goal Score: 750 across the board
Sallie Mae World MC 5k; Chase Freedom 3.5k; CareCredit 13.2k; Amex BCP 10.3K; Amex BCE 12K; Amex PRG; BOA123 Visa Sig 20k; CapOne WMC 7.5K; CSP Visa Sig 5K; Slate Visa 3k; Citi Simp Visa 6.9k; CFCU Visa 15k; Discover IT 4K; JCP MC 8K; Macys Amex 7.5K/2k; PSECU Visa/PSL 20/20K; SamsClub MC 20k; Walmart 10k;
Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Opinion about paying remaining balance after CO settlement


RobertEG wrote:

In my opinion, such a process borders on the improper.

Whether you settled the debt for the full amount, or they accepted less, the debt was satisfied.  You have no debt that they are authorized to collect, period.

 

It kinda smells of a payoff to delete accurate reporting. That raises bushels of legal issues, not the least of which is assertion by another of discrimination if they are denied a payoff under similar circumstances.  If I were a debt collector and chose to conduct such a practice, I would not leave a paper trail.......


If that is the case, why then, in many, many posts, are the OC/CA trying to collect the remainder of the balance? 

Valued Contributor
p-
Posts: 2,634
Registered: ‎06-05-2008
0

Re: Opinion about paying remaining balance after CO settlement


tld409 wrote:

p- wrote:
tld409 wrote:This account is scheduled to fall off in the fall of 2014.  Is this a good idea to pay the remaining balance now for deletion?

IMHO, if you can pay in full now to get it deleted go for it, unless it's such a huge amount that it's worth letting it age off.


Thanks p-.    The amount would be a little of $300 which is the half of what I settled for previously. 


For three hundred bucks, I'd say it's worth it.  Getting your report spotless almost a year sooner has it's own payoff.  Odds are good you'll make the money back in interest savings in your next loan or app.  Plus you'll look a lot better in manual reviews.  

As far as the legality of them offering that; who cares?  As long as you're not breaking the law, their agreement with the CRA is their issue.  

If you have the cash and it's not a hardship to get it done, go for it. Just make sure you get it in writing.

  8-12-14: FICO EXP: 797 - EQU: 734 - TRAN: 739 - AVG: 757 - +207 points from JUN 2008 - MY CREDIT JOURNAL

Regular Contributor
tld409
Posts: 220
Registered: ‎03-21-2012
0

Re: Opinion about paying remaining balance after CO settlement


p- wrote:

tld409 wrote:

p- wrote:
tld409 wrote:This account is scheduled to fall off in the fall of 2014.  Is this a good idea to pay the remaining balance now for deletion?

IMHO, if you can pay in full now to get it deleted go for it, unless it's such a huge amount that it's worth letting it age off.


Thanks p-.    The amount would be a little of $300 which is the half of what I settled for previously. 


For three hundred bucks, I'd say it's worth it.  Getting your report spotless almost a year sooner has it's own payoff.  Odds are good you'll make the money back in interest savings in your next loan or app.  Plus you'll look a lot better in manual reviews.  

As far as the legality of them offering that; who cares?  As long as you're not breaking the law, their agreement with the CRA is their issue.  

If you have the cash and it's not a hardship to get it done, go for it. Just make sure you get it in writing.


 Just waiting for the letter agreement to proceed.  Thanks again!

 

Starting Score 630 Current:EX:706(09/01/14); EQ08: 747(10/10/14);TU:748 (10/13/14):Goal Score: 750 across the board
Sallie Mae World MC 5k; Chase Freedom 3.5k; CareCredit 13.2k; Amex BCP 10.3K; Amex BCE 12K; Amex PRG; BOA123 Visa Sig 20k; CapOne WMC 7.5K; CSP Visa Sig 5K; Slate Visa 3k; Citi Simp Visa 6.9k; CFCU Visa 15k; Discover IT 4K; JCP MC 8K; Macys Amex 7.5K/2k; PSECU Visa/PSL 20/20K; SamsClub MC 20k; Walmart 10k;
Regular Contributor
tld409
Posts: 220
Registered: ‎03-21-2012
0

Re: Opinion about paying remaining balance after CO settlement


guiness56 wrote:

RobertEG wrote:

In my opinion, such a process borders on the improper.

Whether you settled the debt for the full amount, or they accepted less, the debt was satisfied.  You have no debt that they are authorized to collect, period.

 

It kinda smells of a payoff to delete accurate reporting. That raises bushels of legal issues, not the least of which is assertion by another of discrimination if they are denied a payoff under similar circumstances.  If I were a debt collector and chose to conduct such a practice, I would not leave a paper trail.......


If that is the case, why then, in many, many posts, are the OC/CA trying to collect the remainder of the balance? 


I was wondering the same thing myself.

Starting Score 630 Current:EX:706(09/01/14); EQ08: 747(10/10/14);TU:748 (10/13/14):Goal Score: 750 across the board
Sallie Mae World MC 5k; Chase Freedom 3.5k; CareCredit 13.2k; Amex BCP 10.3K; Amex BCE 12K; Amex PRG; BOA123 Visa Sig 20k; CapOne WMC 7.5K; CSP Visa Sig 5K; Slate Visa 3k; Citi Simp Visa 6.9k; CFCU Visa 15k; Discover IT 4K; JCP MC 8K; Macys Amex 7.5K/2k; PSECU Visa/PSL 20/20K; SamsClub MC 20k; Walmart 10k;

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