PFD Collection OR Settle CO?

[SSPA87]

Would it be more beneficial to PFD a collection account or to use the money and settle a CO?

Options:

Asset Acceptance - attempt PFD $285

Cap 1 - Offer settlement (30%?) to be marked as PIF on a $1400 charged off CC

Would like opinions on which might be the better option.  Though now that I DV'd with Asset Acceptance, they may try to get the money from me anyway (and they added "dispute" to my CRs)

Opinions??

[j_casteel]

You can always try to PFD, and then go the settlement route. Doubt they would allow you to settle for 30% but you never know.

Good luck!

[notyours]

pfd

[guiness56]

How old is the collection?

[SSPA87]

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@guiness56 wrote:

How old is the collection?

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Placed in collections 11/2009 - updated with the dispute remark on the 27th 

[Oyiwaa]

This is a tricky dilemma. 

A pfd is better if you can get one, so I would shoot for that first - search the board for peoples PFD experiences with Asset. At any rate, I will still go ahead and pay it in full.  It increases your chances of getting a delete later.

Settlement on the Cap1 card might be a better option since the size of the debt is likely affecting your utilization.  Also, as part of the settlement arrangment, ask that they do not put in a special comment indicating that the account was settled for less than full balance - that comment in itself is inherently negative.

Hope this helps ... Oyiwaa. 

[guiness56]

I would go with the PFD.  Hopefully you'll see an increase in your score.

Is Cap 1 reporting a balance and a CL?

[SSPA87]

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@guiness56 wrote:

I would go with the PFD.  Hopefully you'll see an increase in your score.

Is Cap 1 reporting a balance and a CL?

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I will attempt the PFD - from what I've been reading, Asset Acceptance will often agree to PFD but then not delete and people have to go through the BBB to get it deleted. 

Cap 1 reports like this:

CAPITAL ONE BANK USA NA   # PO BOX 30281 SALT LAKE CITY, UT 84130 (800) 258-9319 Date Opened: 10/21/2007 Responsibility: Individual Account Account Type: Revolving Account Loan Type: CREDIT CARD Date Updated: 02/03/2013 Payment Received: $0 Last Payment Made: 12/01/2008 Original ChargeOff: $1,428 Pay Status: >Charged Off< Terms: Paid Monthly Date Closed: 08/02/2009 >Maximum Delinquency of 120 days in 05/2009 for $290 and in 06/2009 for $366< High Balance:  High balance of $1,428 from 08/2010 to 02/2013 Credit Limit:  Credit limit of $1,000 from 08/2010 to 02/2013 Estimated month and year that this item will be removed:  12/2015

[guiness56]

The reason I ask is when you have a CO and the balance and the CL are reported you get a double ding on your CR because it still is factored into your utilization.  When you pay it off and/or settle, it will no longer factor into utilization.  The CO will still impact you however.

If your utilization is high and it went down considerably you may see an increase.

It's just something you will need to decide what to do.  Whether the deletion of the CA will give you more points than your utilization dropping.

[SSPA87]

Oy.  Such a hard decision.  I guess I can offer the PFD and if they accept, then I can save up for a few weeks and try to settle the Cap 1 acct.  ( I probably have enough to do it now, but don't want to stretch my budget too much)  If Asset Acceptance does not accept the PFD, then I will go to Cap 1 and settle with them. 

Now to come up with what to write in the PFD to Asset Accpetance so I can get it in the mail tomorrow...