01-10-2013 09:27 AM
I had $15k CC balance with US Bank. I tried to settle all along but they did not budge from 80%. The rep said the account and the charges were too new. Then in the last week before charge off, they came down to 50%, which I still could not afford. Then on the day of charge off, they approved 35% settlement, which I was able to do, but the balance charged off and the written settlement offer never came. Now the debt is with USBank's Recovery Department. I have not yet heard from them (it's been a month since charge off).
What should I do now? I really want the charge-off deleted. I figure my options are:
A) write a PFD letter; and/or
B) negotiate a settlement with the Recovery Dept, and then delete the charge off through CRA's.
Is there a better strategy? For PFD, I'm not sure who to write to... it seems most reps just follow a script and are likely to rubberstamp a big "NO."
Thanks for any comments/ideas.
01-10-2013 10:17 AM
Don't get fixated as to when it was CO'd. Chances are there were major baddies leading up to the CO and the CO would be scored on par with those lates (90 or worse).
If they approved a 35% settlement then definitely push them to have it in writing. Definitely start calling again. I wouldn't pay if they didn't give that settlement in writing. If that 35% becomes void or stale, then I would start with the PFDs at that 35% mark. Chances are you'll have to settle it anyway and then GW at a later date. Only dispute if not accurate. Start with PFDs to the address on your CR.
01-10-2013 11:34 AM
PFD is the appropriate way to attempt deletion of the reported charge-off.
Paying and then asking the CRA to delete based on payment is highly unlikely, as the CRAs have a written policy, included in their reporting manual, that furnishers are not even to report a deletion based on payment. It is not likely that the CRA will act contrary to their own policy.
For the PFD, most find better results by addressing their request to a management official rather than the department underlings.
If they wont bite on a PFD, at least attempt to get their agreement not to report that the debt was settled for less.
You can hold out for a PFD, however that may have some peril. If the debt is still under SOL, they have the option of bringing legal action.
And, having charged-off the debt, it is a common next step to sell the bad debt to a debt collector, which would result in an additional collection being reported.
01-11-2013 10:27 AM
Thanks for your responses.
The more I read online, the less hopeful I am that a PFD is possible. It seems very few people get successful PFD's, and those who do pay fairly high percentages. (If I could pay a high percentage, I would have probably settled long ago).
Plus, there's the difficulty of getting past the low-level reps. I could not find any contact info for higher level people at US Bank Recovery Department.
You're right about the continued exposure to legal action.
I'm trying to find a way to settle this ASAP, within the means available to me, while getting the best outcome as I can. I thought that included a PFD, but I think I'm giving up on that idea.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.