Payday Loan Direction Needed

[Anonymous]

Hello!

I have a payday loan from 2 years ago that is appearing on my credit. Long story short, I took this loan out as a favor to a family member, and it went south after 4 payments and was never paid. 

The payday loan company sent me a settlement option of 1) paying the account in full with one time payment of $1,819 or 2) Making 48 payments of $37 a month to pay off the balance. Right now it reports on my credit report as FTP. I am not in a position at the moment to try and argue a settlement with them (i.e. pay only $800 or something of that nature) to consider it settled as I just depleted my funds set aside for that removing other baddies, but I do want it off my report as a negative item.

If I agree to the 48 month payment plan, do they begin reporting it as a monthly payment being recevived and will that appear good on my credit? Or since its already charged off, will the balance just go down but the negative not actually removed?

Or is my best option just to let it age and try settling again later down the line? This is only 1 of 3 baddies on my report currently.

Here is how it appears on my report: http://i65.tinypic.com/ehn4w9.jpg

[Anonymous]

---

@Anonymous wrote:

Hello!

I have a payday loan from 2 years ago that is appearing on my credit. Long story short, I took this loan out as a favor to a family member, and it went south after 4 payments and was never paid. 

The payday loan company sent me a settlement option of 1) paying the account in full with one time payment of $1,819 or 2) Making 48 payments of $37 a month to pay off the balance. Right now it reports on my credit report as FTP. I am not in a position at the moment to try and argue a settlement with them (i.e. pay only $800 or something of that nature) to consider it settled as I just depleted my funds set aside for that removing other baddies, but I do want it off my report as a negative item.

If I agree to the 48 month payment plan, do they begin reporting it as a monthly payment being recevived and will that appear good on my credit? Or since its already charged off, will the balance just go down but the negative not actually removed?

Or is my best option just to let it age and try settling again later down the line? This is only 1 of 3 baddies on my report currently.

Here is how it appears on my report: http://i65.tinypic.com/ehn4w9.jpg

---

What is the SOL in your state?  That would be my first consideration is preventing them from suing and obtaining a judgment against you.  As it has been a year, they probably would not be amenable to a settlement of less than 50%.  Have never dealt with them, so I don't know what to say in regards to how it would report as you are satisfying the debt.  Since it has charged off, and you haven't reported that they sold the debt, you have only that one ding against you.  Should they sell it to JDB, then you would have the charge off and the collection.  It's still going to be on your reports for another 6 years, and if they sue and get a judgment, up to 10 years depending on your state.  If it were me, I would take the payment (after having received confirmation in writing), and work towards getting the funds together to pay it off, but prevent them from pursuing further collection activity.

[Anonymous]

---

---

@Anonymous wrote:

---

@Anonymous wrote:

Hello!

I have a payday loan from 2 years ago that is appearing on my credit. Long story short, I took this loan out as a favor to a family member, and it went south after 4 payments and was never paid. 

The payday loan company sent me a settlement option of 1) paying the account in full with one time payment of $1,819 or 2) Making 48 payments of $37 a month to pay off the balance. Right now it reports on my credit report as FTP. I am not in a position at the moment to try and argue a settlement with them (i.e. pay only $800 or something of that nature) to consider it settled as I just depleted my funds set aside for that removing other baddies, but I do want it off my report as a negative item.

If I agree to the 48 month payment plan, do they begin reporting it as a monthly payment being recevived and will that appear good on my credit? Or since its already charged off, will the balance just go down but the negative not actually removed?

Or is my best option just to let it age and try settling again later down the line? This is only 1 of 3 baddies on my report currently.

Here is how it appears on my report: http://i65.tinypic.com/ehn4w9.jpg

---

What is the SOL in your state?  That would be my first consideration is preventing them from suing and obtaining a judgment against you.  As it has been a year, they probably would not be amenable to a settlement of less than 50%.  Have never dealt with them, so I don't know what to say in regards to how it would report as you are satisfying the debt.  Since it has charged off, and you haven't reported that they sold the debt, you have only that one ding against you.  Should they sell it to JDB, then you would have the charge off and the collection.  It's still going to be on your reports for another 6 years, and if they sue and get a judgment, up to 10 years depending on your state.  If it were me, I would take the payment (after having received confirmation in writing), and work towards getting the funds together to pay it off, but prevent them from pursuing further collection activity.

---

---

I think the SOL for Texas was 5 years last time I researched it, but I can't confirm. 

I did call them today. The debt was with a collection agency but it went back to the original creditor (strange) so I was able to work with Springleaf Financial directly. You were right, they would not settle for less then 50% of the debt. They agreed on $909.89 to consider the debt paid in full, taken in two payments, $400 today, and the rest within 30 days. They faxed me a offer letter so I would have it in writing prior to paying. 

While it's certainly a lot more then I wanted to pay - it will be on less baddie on my report. 

[Anonymous]

---

@Anonymous wrote:

Hello!

I have a payday loan from 2 years ago that is appearing on my credit. Long story short, I took this loan out as a favor to a family member, and it went south after 4 payments and was never paid. 

The payday loan company sent me a settlement option of 1) paying the account in full with one time payment of $1,819 or 2) Making 48 payments of $37 a month to pay off the balance. Right now it reports on my credit report as FTP. I am not in a position at the moment to try and argue a settlement with them (i.e. pay only $800 or something of that nature) to consider it settled as I just depleted my funds set aside for that removing other baddies, but I do want it off my report as a negative item.

If I agree to the 48 month payment plan, do they begin reporting it as a monthly payment being recevived and will that appear good on my credit? Or since its already charged off, will the balance just go down but the negative not actually removed?

Or is my best option just to let it age and try settling again later down the line? This is only 1 of 3 baddies on my report currently.

Here is how it appears on my report: http://i65.tinypic.com/ehn4w9.jpg

---

I would tell them that you simply do not have the funds to pay it right now, but that may change in the next six months or so. Its very likely they may come to you with a settlement offer come tax season....

[Anonymous]

---

@Anonymous wrote:

---

---

@Anonymous wrote:

---

@Anonymous wrote:

Hello!

I have a payday loan from 2 years ago that is appearing on my credit. Long story short, I took this loan out as a favor to a family member, and it went south after 4 payments and was never paid. 

The payday loan company sent me a settlement option of 1) paying the account in full with one time payment of $1,819 or 2) Making 48 payments of $37 a month to pay off the balance. Right now it reports on my credit report as FTP. I am not in a position at the moment to try and argue a settlement with them (i.e. pay only $800 or something of that nature) to consider it settled as I just depleted my funds set aside for that removing other baddies, but I do want it off my report as a negative item.

If I agree to the 48 month payment plan, do they begin reporting it as a monthly payment being recevived and will that appear good on my credit? Or since its already charged off, will the balance just go down but the negative not actually removed?

Or is my best option just to let it age and try settling again later down the line? This is only 1 of 3 baddies on my report currently.

Here is how it appears on my report: http://i65.tinypic.com/ehn4w9.jpg

---

What is the SOL in your state?  That would be my first consideration is preventing them from suing and obtaining a judgment against you.  As it has been a year, they probably would not be amenable to a settlement of less than 50%.  Have never dealt with them, so I don't know what to say in regards to how it would report as you are satisfying the debt.  Since it has charged off, and you haven't reported that they sold the debt, you have only that one ding against you.  Should they sell it to JDB, then you would have the charge off and the collection.  It's still going to be on your reports for another 6 years, and if they sue and get a judgment, up to 10 years depending on your state.  If it were me, I would take the payment (after having received confirmation in writing), and work towards getting the funds together to pay it off, but prevent them from pursuing further collection activity.

---

---

I think the SOL for Texas was 5 years last time I researched it, but I can't confirm. 

I did call them today. The debt was with a collection agency but it went back to the original creditor (strange) so I was able to work with Springleaf Financial directly. You were right, they would not settle for less then 50% of the debt. They agreed on $909.89 to consider the debt paid in full, taken in two payments, $400 today, and the rest within 30 days. They faxed me a offer letter so I would have it in writing prior to paying. 

While it's certainly a lot more then I wanted to pay - it will be on less baddie on my report. 

---

Ahh, should have read the whole thread before replying.... Carry on!

[Anonymous]

---

@Anonymous wrote:

Ahh, should have read the whole thread before replying.... Carry on!

---

No worries! Thanks for your input! It is appreciated. 

They were very nice and helpful and understood that I did not have the funds all at once to pay, but they still agreed to the lower settlement and payments to satisfy it. Win!

[sjt]

FYI- I beleive Pay Day loans cannot be reported to CRA under the new guidlines of the National Consumer Assistance Plan.

https://www.thenewspaper.com/rlc/docs/2016/creditletter.pdf

[Anonymous]

---

@sjt wrote:

FYI- I beleive Pay Day loans cannot be reported to CRA under the new guidlines of the National Consumer Assistance Plan.

https://www.thenewspaper.com/rlc/docs/2016/creditletter.pdf

---

Thats fantastic news actually! Do you think if I printed and sent that to them and demanded removal of it from my credit report that it would work?

[Anonymous]

I would hunt for a better reference - google "national consumer assistance plan" and get a direct source to reference.

[sjt]

---

@Anonymous wrote:

I would hunt for a better reference - google "national consumer assistance plan" and get a direct source to reference.

---

Here is another link:

http://www.ag.ny.gov/press-release/ag-schneiderman-announces-groundbreaking-consumer-protection-settlement-three-national