Understanding FICO® Scoring

[AutumnC74]

@llecs - I settled for $1296 less than the charged off amount, paying $5076 of a $6372 debt. Three more payments and I would have paid in full but I was not given that option.

[AndySoCal]

How recently did the charge off happen and also what type of account is it?

[Tikon]

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llecs wrote:

Also, by law, if a collector says they are going to sue, then they have to sue. They aren't allowed to make empty threats. I didn't look at the balance paid (if posted) and money is always relative, but If I owed $15,000 as an example, and they offered to settle for $5000, then I'd rush and jump at the offer, duress or no duress.

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Anytime with law there're always grey area.

"We will sue you if you don't do x" is certainly a threat and collection regulations say they should fully intend to sue if x is not met.

However:

"We will pursue our legal options if you don't do x" is a statement of intent without a specific action. Their legal option could be more calls if so allowed.

Or:

"We have the option to sue you if you don't do x" is a notice that they have particular legal rights and is not a threat.

Finally, given the amount of money the OP listed, I would think it's reasonable they might have intended to actually sue him.

I just don't see why the OP is outraged. He OWED over $6000 and has legally satisfied his debt by paying less than $5000. The OC lost a lot of money. If I were an underwriter I would want to be aware of that by noting the collection account on the OP's credit report.

[IRebuildCredit]

If they threatened to sue, then you should have called their bluff in my opinion. Since you have it resolved. I believe that you can get the mark removed after you have settled the matter, therefore you should see an increase in your score. 

[AutumnC74]

@Tikon, I'm a female. I am upset for a myriad of reasons but feel no desire to defend myself to you. I am on here to learn from my mistakes not be shamed. I am attempting to rebuild my credit and I, like most people, feel sad and frustrated and experience horrible and scary situations when attempting to rebuild. So please, in the future with regards to my posts keep your opinions and/or judgment to yourself but feel free to share your knowledge and experience. For some people, sharing their secret credit lives is scary and takes a lot of courage and to be met with judgment and condemnation can compound negative feelings like guilt, shame and humiliation. Thanks.