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Regular Contributor
Mondavi
Posts: 221
Registered: ‎06-12-2012
0

Question about a settlement.

My first post here. Thanks for all the great information on this site.

I had a CO from Capital One from 2007. I am currently looking into buying a home so I am cleaning up some issues. Well this CO was one of them.  The account was for 6000 their attorney asked what I would pay to take care of this account. I said 3000. Maybe I should have tried lower. However that is past the point.  So I have a letter saying that the account was Settled in Full.

Problem now my credit reports say Settled in Full however my balance is not zero. It is 3k. So they just reported the other amount that I owed.

I had another card that I paid in a settlement years ago. It said Settled for amount less than owed. Though the balance is zero.

If you are a lender are you going to see this balance and assume I still owe it? Does it look bad to them and does it hurt my utilization as well?

                                                        

Mega Contributor
RobertEG
Posts: 18,543
Registered: ‎03-19-2007
0

Re: Question about a settlement.

Adding the speicial comment of paid for less is totally appropriate, but regardless of the amount paid to satisfy the debt, the debt becomes $0 and must be reported as such.  Continuing to show a balance on the account does more than imply non-satisfaction of the debt, it explicitly states as such.

 

I would send the creditor a direct dispute, asserting inaccuracy in their reporting of a balance due on a satisfied debt.

Regular Contributor
scmami
Posts: 195
Registered: ‎01-05-2012
0

Re: Question about a settlement.

So, Robert...I seek your advice (again) on the exact same scenario as the OP which I posted earlier this week. I am about to settle with CapOne as well . The rep informed me that the above would happen. So, if I understand you correctly, I can dispute this with CapOne if/when it reports this way? This seems to be the norm with them as I have been researching this week online. I will have to find out what, if any, violation I need to cite...
Starting FICOs (2/2012): EQ 559 TU 558
Current FICOs (EX and TU Lender pulled 10/6/12): EQ 652 TU 635 EX 647
Matthew 7:1 KJV
Judge not, that ye be not judged.
Regular Contributor
Mondavi
Posts: 221
Registered: ‎06-12-2012
0

Re: Question about a settlement.

I spoke with Cap One today and asked why I still had a balance of 3000 still showing on my reports even though I have a letter saying that the debt was Settled in Full.  Their reply was it was being reported correctly and even though I settled the remaining balance will be posted.

To me this does not sound right. I am fine for them putting debt settled for less than full amount or whatever. Just not happy about remaining amount still being posted and I am sure it is hurting my utilization.

So if they are not supposed to do this can someone please help me out and let me know what route I need to take to get them to post a 0 balance on my reports.

Regular Contributor
scmami
Posts: 195
Registered: ‎01-05-2012
0

Re: Question about a settlement.

This is exactly the info I need as well. I am paying them off only because they are affecting my utilization. Not even because my lender will require it for a mortgage. I would really, reallly like to know how to get a zero balance if I paid a settlement (paying today or tomorrow!)

Starting FICOs (2/2012): EQ 559 TU 558
Current FICOs (EX and TU Lender pulled 10/6/12): EQ 652 TU 635 EX 647
Matthew 7:1 KJV
Judge not, that ye be not judged.
Contributor
dbslove
Posts: 96
Registered: ‎04-14-2012
0

Re: Question about a settlement.

I have 2 CO that I am paying off by next week and was advised it would report 0 balance but comment of settled for less than amount due. They are hurting my utilization so I will just work with the comment and GW them to death. I just hope the comments don't hurt my score.

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