Credit Card Center Advertiser Disclosure

Established Member
Posts: 31
Registered: ‎09-27-2010
0 Kudos

Wells Fargo Settlement Offer

I received a letter from Wells Fargo regarding a home furnishings store credit card account we have with them.  Here's the background: Card was opened in late 2003.  Have been late in the past, but never 30 days late.  Account had credit line reduced a little over a year ago (to an amount above our balance) due to a review of updated credit history (had one medical collection post).  Then a few months ago was informed that WFFNB was no longer going to be offering our account type.  NEVER did anything say that the account was being closed due to our account history.   Anyways, due to some financial stresses the last couple of months, I got dinged with one 30 day late on this account for our January payment.  It's the first and only 30 day late on this account which we have had open for over 7 years now. 


Yesterday I got a weird letter in the mail from WFFNB, that after reading twice, appears to be an invitation for me to call them and discuss settling the account for less than the full balance (it references maximizing the power of your 2010 tax return for financial gain or something weird like that).


I owe about $1200 on this account and would much rather pay that amount in full as time allows (with continued on-time payments) than take a settlement offer for less if it means my score would get hurt by a settlement.  I assume that an account settled for less than the full balance would be a "baddie".


Any advice?


Valued Contributor
Posts: 3,022
Registered: ‎08-13-2009
0 Kudos

Re: Wells Fargo Settlement Offer

1 - call them up and ask for more information regarding the letter

2 - if they offer a settlement, say no thank you


Smiley Happy


They may want your tax return to pay off the debt.  

Established Contributor
Posts: 795
Registered: ‎04-13-2009
0 Kudos

Re: Wells Fargo Settlement Offer

Settled only hurts your score if it's reported to be closed as settled. If you can get them to agree that the account would be closed as paid in full for the settlement amount, then that would be to your benefit. However, forgiven debt is considered income, so depending on how much debt is forgiven, you could owe taxes on that amount.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on 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.