How will settling with CA affect my credit report?

[nickeypoo72]

If I settle with a collection agency for less than what the balance I owe is, how will this show on my credit report and how will it affect my FICO score?

[Tuscani]

You want a PFD.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2659

[nickeypoo72]

This CA is not showing on my credit report, they are collecting for another agency.  Will  a PFD even matter to them?

[Anonymous]

So presumably the first agency shows up on your report? Sounds like the old "assignee of" routine where a CA enlists another CA to do their dirty work.

Or, does the original creditor show up on your report and their hired gun CA is after you?

If it's the second scenario, go to the original creditor and propose a PFD because they may still own the debt. If it's the first scenario, it gets sketchy but you can propose a PFD and wait for a response. Whoever is doing the reporting.....that's who you want to hit first.

Message Edited by devhip on 05-18-2007 03:41 PM

[nickeypoo72]

Yes, they have a CA collecting for another CA.  I would love to try a PFD with CA showing up on credit report.  Will have to work on this.  Thank you for your input!