URGENT MATTER......HELP!!!Orchard Bank - HSBC

[NikJ4]

Question-

My account was closed as of yesterday by them and placed with a collection company. All of my bills will still be coming from them but the account is closed. I can settle the account and lose all possibilities of the account being re-opened or I can pay the total due on the account and then once paid in full as for a possible re-instatement. They can not give me a definite guarantee that the account will be reopened which makes me wonder what should I do?

Any suggestions would be great. This is an account I have had for a while (over 2 yrs) so I would hate to lose them but.....

I did ask if they could pull it back from the collection agency and they act like Pres Obama would have to sign off for that to occur.

[NikJ4]

Hello Fico Family....Could I please get some help. I am desperate....

[RobertEG]

My comments.

They are exerting muscle to retrieve the debt that is legitimately owed to them.

They dont care much about even entertaining issues of account re-opening until you pay the debt.

Apparently, the CA has also  reported to your CR.

They say maybe they will, or maybe they wont, re-open, but what that means to me is that they wont.

It is a carrot with no stick. I dont see a reason why they would re-instate a problem acccount without super reeasons.

The real issue is, putting yourself in their shoes, why would they want to re-open an account that not only went into intitial default, but also required them to then pay a CA to assist in collection of a still default account?  Dont they still view you as a high risk client?

Maybe you are putting too much weight on getting this account returned to good status.  All you will re-gain is its CL.

Closed accounts still count in your average age of accounts, so wont ding your AAoA.

Unless it a high CL card, just pay it and let it go.

[llecs]

I'd PIF now and worry about reopening and GWs later.

ETA...I wouldn't settle.

[NikJ4]

Its still with Orchard, the collection agency is just who they are using to collect. The account has not been sold. It is still under the orchard bank unbrella. I can continue to make monthly payments until I get it paid off. They are using the leverage of if I settle on the account then there is no way to get it back. If I PIF then once paid, I can have it reconsidered. I guess that is why I am wondering which route to take. If I settle, it is saving me $300. If I PIF then I am not getting any savings out of it what so ever.

[llecs]

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@NikJ4 wrote:

Its still with Orchard, the collection agency is just who they are using to collect. The account has not been sold. It is still under the orchard bank unbrella. I can continue to make monthly payments until I get it paid off. They are using the leverage of if I settle on the account then there is no way to get it back. If I PIF then once paid, I can have it reconsidered. I guess that is why I am wondering which route to take. If I settle, it is saving me $300. If I PIF then I am not getting any savings out of it what so ever.

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Think about your goals. Settling an account (or at least reporting as such) will drop your scores. A settled account is on par score-wise as a CO. I can't answer this for you, but would a savings of $300 be important than a lower score?

[NikJ4]

thank you.... I knew I would get steered in the right direction. I am still a grasshopper learning....