Settled AMEX CO, but still showing balance?

Anonymous · ‎02-07-2015

Last week, I settled an AMEX charge off. Total due was $4500. I settled with them for $2000 to satisfy the debt. Today, my Equifax score went up 39 points as a result of the settlement, however, the listing on the alert shows that the balance was updated to $2500, the original balance less my settlement payment.

I have letters saying the settlement will satisfy the debt.

Is this a normal way to report? Every other account I've settled shows a 0 balance. While I understand there is still a balance on the account, the settlement should have taken the balance to 0. What should I do? Dispute? Call NCO (the collection agency)? Or just suck it up and deal with it?

Thanks in advance!

Anonymous · ‎02-07-2015

OK. Impatient. Sent an email to NCO with their letter attached stating that my $2,000 payment would settle the debt. They say they'll respond within 2 days.

Fingers crossed. I did some researching and found that if a debt is settled, it should report a balance of $0 (correct?)... hopefully, this will raise my score even more than the 39 points I got today, as it's basically being treated as a revolver with $2500 balance on it (5 year old charge off).

Anonymous · ‎02-07-2015

I had the same issue on a settlement. I'm hoping it gets changed.

gdale6 · ‎02-07-2015

@Anonymous wrote:
Last week, I settled an AMEX charge off. Total due was $4500. I settled with them for $2000 to satisfy the debt. Today, my Equifax score went up 39 points as a result of the settlement, however, the listing on the alert shows that the balance was updated to $2500, the original balance less my settlement payment.

I have letters saying the settlement will satisfy the debt.

Is this a normal way to report? Every other account I've settled shows a 0 balance. While I understand there is still a balance on the account, the settlement should have taken the balance to 0. What should I do? Dispute? Call NCO (the collection agency)? Or just suck it up and deal with it?

Thanks in advance!

If they settle it then the balance is 0 you owe them nothing, they can however put in comments settled for less than full balance CO 2500 if they wish to do so, If they wont 0 the balance file CFPB complaint.