topic Re: Debt Negotiation - Settlement with Amex in General Credit Topics

Debt Negotiation - Settlement with Amex

Anonymous — Tue, 04 Dec 2007 18:31:52 GMT

Hi, I am trying to rebuild my credit score. I have paid off most of my credit cards, however, still have a large debt with AMEX for $9800. They have offered us a 50% settlement which we an accept but are concerned that they will mark our account "Paid as Agreed" with all credit report agencies. We have read that this will actually drop our score even more. Does anyone have any advice? We are negotiating with AMEX directly telling them we would accept the settlement if they would remove all the negative information, "comnplete removal". We also read that Paid with No late payments" is ok. Any thoughts? Thanks. Dave

Re: Debt Negotiation - Settlement with Amex

My_dog_FICO — Tue, 04 Dec 2007 18:38:29 GMT

Dave,

If they report that your payments are in good standing and that the account is not in collections or past due, and they don't report any late payments - then keep it on your report. No negative infomation actually helps your FICO because it adds age to your CR. Also, if they report it in good standing, you may be able to apply for a AMEX again in the future.

Re: Debt Negotiation - Settlement with Amex

Anonymous — Tue, 04 Dec 2007 18:42:02 GMT

Well you have to ask yourself, is a slight decrease in your score, worth $9,800? 50% off is a great deal. that's $4.900. Is the account open or closed? What is your financiall situation? If it's open can you get them to knock down the interest rate and be faithful to larger monthly payments to keep it active.

If it's closed who closed it? If Amex did then I would seriously consider the settlement, that's a savings of almost $5,000. and you can make up the score difference down the road.

Re: Debt Negotiation - Settlement with Amex

SmartCookie — Tue, 04 Dec 2007 19:00:04 GMT

They would most likely note it as 'legally settled for less than full' which is the same as a PIF but if anyone is doing a manual review... they will read that and it isn't as favorable.

Read up on PFD letters. Maybe they will take that same settlement and delete the info... or maybe you might add a small bit to it...

If this account was not very old and/or had lots of more recent derogs all over it... I would PFD.

If the account and derogs are old I would not want a PFD and I would take the settlement. In this instance, you can still request that they send you something in writing stating that upon payment, your account will be updated as legally paid in full etc. You can even take it farther asking them to delete derog info upon payment. Consider and try all of your options before you pay while you have negotiating room.

Re: Debt Negotiation - Settlement with Amex

Anonymous — Mon, 10 Dec 2007 17:54:46 GMT

Thanks for the replies. The current status is the remarks on our credit reports are that it is over 120 days late; was in collection (though it went back to AMEX after we sent letter contesting the claim). AMEX has offered the 50% settlement, but will not budge in terms of removing negative re comments from credit reports such as late notations. They will only mark as "Paid as agreed", and are now threatening to do an asset search if we don't settle. I would like to settle. I just don't want to do my scores more harm than good. Any thoughts? Dave

Re: Debt Negotiation - Settlement with Amex

Anonymous — Mon, 10 Dec 2007 18:06:58 GMT

One other note. The account was closed by AMEX. They also closed a second AMEX account I had that was paid and up to date. They have offered me a new card if I paid in full, which I can't, with a ridiculous rate of like 24% interest rate.

Re: Debt Negotiation - Settlement with Amex

fishbjc — Mon, 10 Dec 2007 18:29:56 GMT

Those dogs at AMEX aren't fun to deal with. For a savings of $4900, I'd take the credit hit. Like the others said..make up the score later. Keep us updated on this please.

AMEX closed dh account as well, but I immediately paid them in full. DH had a big job issue with last company, he was in sales and they really stuck it to him, so the AMEX went into default because of loss of revenue. We did have about $1200 on the 'roll over' plan with a balance now of $700.

I'll look at his cr to see what it says.

Re: Debt Negotiation - Settlement with Amex

fishbjc — Mon, 10 Dec 2007 18:33:11 GMT

Credit Card Amex Status as of November 2007

Date opened [?] May, 2002 Date of last activity [?] Nov, 2007 Largest past balance [?] $1,199 Credit Type [?] Open Account Account holder [?] Individual Scheduled payment amount [?] $0

Descriptions [?]

Account closed by credit grantor
Credit Card

No contact information provided by Equifax

Balance [?] Current Status [?] Past Due Amount [?] $732 OK Not on Record Seven year payment history [?] 30 days late 0 times 60 days late 0 times 90+ days late 0 timesCredit Card Amex Status as of November 2007

Date opened [?] May, 2002 Date of last activity [?] Nov, 2007 Largest past balance [?] $1,199 Credit Type [?] Open Account Account holder [?] Individual Scheduled payment amount [?] $0

Descriptions [?]

Account closed by credit grantor
Credit Card

No contact information provided by Equifax

Balance [?] Current Status [?] Past Due Amount [?] $732 OK Not on Record Seven year payment history [?] 30 days late 0 times 60 days late 0 times 90+ days late 0 times

Re: Debt Negotiation - Settlement with Amex

Anonymous — Mon, 10 Dec 2007 18:36:33 GMT

If I did agree to settle and accept "paid as agreed", any idea how much this will hurt my credit score?

Re: Debt Negotiation - Settlement with Amex

SmartCookie — Mon, 10 Dec 2007 19:05:31 GMT

It will help it because it will 0 out the account and update it to paid. What will help it more is if they remove all derog info at the same time. If they will not, I would keep trying for a PFD.

The lates will look worse than the 'settled legally in full' will on a manual review.

Re: Debt Negotiation - Settlement with Amex

Anonymous — Mon, 10 Dec 2007 20:14:40 GMT

What do you think about their threat of doing an asset search? They sent their settlement offer last month, gave us 30 days to decide and we've been going back and forth trying to get them to change the credit report info to no avail.

Re: Debt Negotiation - Settlement with Amex

Anonymous — Tue, 11 Dec 2007 18:57:19 GMT

Had another conversation with an AMEX supervisor. Bottom line, is that they will offer me the 50% settlement, but, refuse to remove any derogatory information from the credit reports. They will list the debt as settled, but it will become an R9 Charge off. I am really confused. Am I doing myself any favors by settling? I'm assuming if I don't settle, this will go right back to a collection agency. If I settle with a CA, am I more likely to get them to remove derogatory comments? My current credit scores are wide ranging 616, 640 and 705. Any advice, Dave

Re: Debt Negotiation - Settlement with Amex

Anonymous — Tue, 11 Dec 2007 21:23:09 GMT

I settled on a repossession for a car I cosigned. Paid 75% of the remaining value. I worked out an arrangement where I would pay immediately and get no negative reporting. All I can tell you is that during the process of getting this account to show no negative reporting it would be listed as a "Paid Zero Balance Account" and then as a "Paid after Collection/Charge Off Zero Balance Account" and went back an forth for some months while we sorted it out. With the good reporting, my score was 641 (I have high Util) and with the bad reporting, my score was 587. All I'm saying is I don't think a Charge Off is a status to settle for. But then again I don't think $4900 is worth blowing away over your credit score (maybe $1000 but not $5000). I understand why you are torn. Sorry.

I guess the best thing to think about is what are you doing this for? Do you plan on using new credit? Can you setup a payment arrangement with AMEX that isn't a settlement. I would ask them what they are willing to do as far as helping you with a payment arrangement. I was able to save two Citicards that way and am in the process of getting the 3 year old bad stuff GWed. Good luck with whatever you do.

Re: Debt Negotiation - Settlement with Amex

BBYGRL — Tue, 11 Dec 2007 22:57:51 GMT

Keep in mind that if you settle for 50%, you will have to report the remaining amount to the IRS when you file your taxes.

Re: Debt Negotiation - Settlement with Amex

SmartCookie — Wed, 12 Dec 2007 00:44:21 GMT

DaveB59 wrote:
What do you think about their threat of doing an asset search? They sent their settlement offer last month, gave us 30 days to decide and we've been going back and forth trying to get them to change the credit report info to no avail.

Not sure if you said this but when is the collecting SOL up?