POLL: Midland Offer

[Crossdivided]

Have a CA acct from midland, OC tmobile. They offered PIF at 60% of original debt. Past sol. The acct drops off CRs 9/13, 11/13, 12/13. I have no major purchases planned this year, possibly some cc apps.

I counteroffered 45%, they declined.

What ya think, guys? Take it or wait it out? Just looking for a few opinions. Thanks!

[Burned2manybridgesB4]

Psst SOL, and nearing CRTP, they should've taken anything offered. Personally, I'd tell them to pound sand, and FOAD them, but that's me. They'll still attempt collections, as the debt never truly goes away, and will be seen on any PP, for any $150k+ loan.

[guiness56]

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@Burned2manybridgesB4 wrote:
Psst SOL, and nearing CRTP, they should've taken anything offered. Personally, I'd tell them to pound sand, and FOAD them, but that's me. They'll still attempt collections, as the debt never truly goes away, and will be seen on any PP, for any $150k+ loan.

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That's only if the creditor/lender ask for the entire history.  If it is just a CR it won't be there.

[Leadberry]

If the debt is yours I would just pay it to tie up loose ends.

[Kartel34]

offer 50% and see what happens, if the agent gives you some BS then speak to a supervisor.

[RobertEG]

I would pay.

Credit report exclusion does not negate the fact that you still have unpaid, delinquent debt.  It may shield the fact from discovery by way of a simple pull of your CR, but it can still be discovered, and bite you.

A potential creditor may have the ability to obtain a CR that includes all prior file history, such as higher principal extensions of credit that are exempt from the normal exclusion periods, or they could simply ask if you have any old, unpaid delinquent debt.  If the debt is owed to an affiliate, they may obtain the information by way of affiliate sharing.

Aside from the moral issue of satisfying obligations, it is always best, in my opinion, to have no unpaid, delinquent debt. 

[Crossdivided]

TYVM for the responses. I agree, Robert, it is a moral obligation to pay the debt (hey, you have to grow up SOMETIME right?). The question was really more geared to my personal credit education (as most of my questions are).

Something I just noticed after a more careful review of my actual full EQ CR...

This Midland acct is, for some reason, not listed under 'collections', but rather under 'accounts'. Im not sure if this is just a simple mistake, or if it is done intentionally to give consumers more of an incentive to pay (ill explain my reasoning).

As I said, it is listed under accounts, with a 'status' of 120+ days late. If my (limited) understanding of the fico model are even close to right, by having this listed in this fashion, I actually WOULD see a (possible) score increase by a PIF, just by the fact of having one less 'account' that would be showing as PIF rather than the currently late status. Where as the same scenario under 'collections' status would have no effect.

Like I said, perhaps im just misunderstanding the model, but if not ya gotta give Midland kudos for being slick on that one.

Please verify my understanding of the situation...thanks yet again!

[Burned2manybridgesB4]

Look up "factoring company," and you'll see the info about their reporting....location/kd's/etc

[Crossdivided]

Thank you, i did that. Im still not 100% understanding (still new to the credit education world).

If its under 'accounts', and then listed as PIF, wouldnt it then be more of a 'positive' acct (kind of), or atleast drop the 'negative indicator'?

And if that IS the case, wouldnt it then stay 10 years instead of 7, and therefore also gain the AAoA benefit?

Of course, any manual review would find otherwise, as any lender in business more than 5 minutes would know exactly who Midland was, Im speaking more of the score than anything else.

Thanks!

[Shogun]

I always advocate paying/settling the debt.  It just keeps it from showing up with the bottom feeder CAs down the road and if questioned if you have any outstanding debts by a lender, you can honestly say "NO".