Pay in Full or Settle?

[Anonymous]

My BOA Collections is $1,150 and will roll off in Dec 2021.  It has been turned over to Gatestone.

Do I offer settlement of less and pay it now?  (assuming 30%)

Or wait to save up $1,150 (it will take me a year to save this amount).

If the bad mark cant be removed, will a "Settled for Less" remark be that much of a detriment than a "Settled in Full" remark?

I would love to re-establish another secured BOA card to start over but I am afraid if I settle, they won't have me. If I wait to save the money, it will be past the SOL.

If I take the savings and get more secured cards in a year, which would look better while I am in "Bad Credit Jail" for the next 4 years.

[Anonymous]

IMO i think you should settle if they wont pay for delete.  You can always get back in with them after you resestablish yourself with other lenders/banks.  Even if you go the secured route again 6 months from now with BOA i think their secure cards graduate to unsecure ( not 100% on that )

[cjane1]

Are your still in the SOL for your state?

[Anonymous]

4 years for my state, so, yes

[RobertEG]

The disadvantage to a settlement for less is that the creditor or debt collector has the option to include a special comment making of record the fact that the debt was paid for less than its full value.  If that comment is added, then it informs others doing a manual review of your credit report that you have a prior history of not paying the full debt that you have obligated.

That is never a favorable comment, as it informs others that a prior creditor took a loss in having extended credit to you.

You can, as part of your settlement negotiations, include a provision that they agree not to report any reference to settled/paid for less.

Absent that optional reporting, the account will then appear in any manual review the same as if it had been paid in full.  The current status will show as paid, and the current balance must be updated to $0.

[Anonymous]

The tricky part is that BOA is reporting, NOT Gatestone.

I cannot deal with BOA, but only with Gatestone as far as payment.

If I pay Gatestone, how does this "0" out the account with BOA?
How can I offer a settlement offer (with reporting demands) with BOA when Gatestone is who I have to deal with?

If BOA still owns the debt, how can they legally not allow me to deal with them?

It amazes me at how hard they make this. Partly why I attempt to do the right thing but give up because it is useless. They might get more debt paid if this were not such a hassle. 

[RobertEG]

A debt collector can have collection authority, and thus report their collection on a debt, based either on having assigned collection authority from a current owner, or having actual ownership of the debt.

If the creditor has only assigned collection authority to a debt collector, then the creditor can continue to report the debt balance.  If the debt is then paid to their debt collector, the debt collector is required to notify the creditor of the payment, and the creditor is then required to update their reporting to show paid/settled, $0 balance.

Creditors can legally decline to accept payment directly from a consumer once they have assigned collection authority, and require the consumer to deal only with their assigned agent.  Avoiding time and effort in dealing directly with consumers is a primary reason many creditors hire debt collectors.

[Anonymous]

"You can, as part of your settlement negotiations, include a provision that they agree not to report any reference to settled/paid for less."

Is the Credit Agency allowed to make such decision on behalf of Bank of America?

[rmduhon]

The agreement to not report if paid would only apply to the collection agency, not BoA.