topic Re: PRA Settle in Rebuilding Your Credit

PRA Settle

Anonymous — Sun, 05 Jan 2020 13:58:05 GMT

Good morning!
First, to everyone who is providing advice and suggestions on these boards, thank you! I have already learned so much!

And, I think I know the answer to my question already but want to be 100% sure before I call.

I have a collection with PRA. Currently in a payment plan (entered before I started researching :-/...to be paid off in 5 years)

Obviously, with my goal being to raise credit, this option was not my best. Currently, I am in a place to pay off the collection. Here is my question:

I know PRA is deleting the trade line. Since this deletion will happen, does it matter if I settle or pay in full? I think I understand that with manual underwriting, the “settled” comment may deter lenders (only thinking of refinancing home next year) but if PRA delete anyway, will this even matter?

Summary: If I settle with PRA will it have less of a positive result than paying in full, once tradeline is deleted?

Thanks in advance for any guidance!!

Re: PRA Settle

gdale6 — Sun, 05 Jan 2020 14:27:58 GMT

No it doesnt matter settled or PIF if they are deleting and a settle for less would only affect possibly a human underwriter looking at it and ask for an explanation but even that doesnt matter if the TL is gone and deleted. Welcome to the board.

Re: PRA Settle

Anonymous — Sun, 05 Jan 2020 20:32:52 GMT

Thank you! As I thought, but just wanted to double check!

Re: PRA Settle

Red1Blue — Sun, 05 Jan 2020 20:53:39 GMT

@Anonymous wrote:
Thank you! As I thought, but just wanted to double check!

Last week, I settled and paid off on 3 PRA accounts. Waiting for them to remove the collections from report. Hopefully in the next few days they should drop off from my reports.

Re: PRA Settle

ThetoriParadox — Sun, 05 Jan 2020 23:10:57 GMT

I am in the same boat, in a payment plan with PRA but would way rather settle. Is there a way to get out of the current payment plan and renegotiate? Anyone had experience?

Re: PRA Settle

OmarGB9 — Sun, 05 Jan 2020 23:17:18 GMT

@ThetoriParadox wrote:
I am in the same boat, in a payment plan with PRA but would way rather settle. Is there a way to get out of the current payment plan and renegotiate? Anyone had experience?

Yes, just call them and ask if you can settle the remaining balance.

Re: PRA Settle

satio — Mon, 06 Jan 2020 00:31:42 GMT

I see no reason not to always settle for less with PRA when given the opportunity to do so. And each time I have dealt with an account with them either from my own recovery as well as helping other family and friends they are always ready to settle and typically for 50 points on the dollar or sometimes even less.

They are a collection agency and their tradeline will be completely deleted whatever amout you pay.

Re: PRA Settle

ThetoriParadox — Mon, 06 Jan 2020 02:27:01 GMT

I agree Satio, but when I entered into my agreement I had no idea about settling with them, I just didn't want them to sell it. :/ Hindsight...

Re: PRA Settle

satio — Mon, 06 Jan 2020 03:20:44 GMT

@ThetoriParadox wrote:
I agree Satio, but when I entered into my agreement I had no idea about settling with them, I just didn't want them to sell it. :/ Hindsight...

At the end of the day unless the original charge off amount has been significantly increased with fees or interest, it is something we all actually owed in good faith. We learn as we go.

If you have the means to make a lump sum payment, can't hurt to call and ask if they will accept something less than the full remaining balance you are paying.

My mother always said it never hurts to ask, worst someone can say is no. Though as I got older, I learned that sometimes that becomes hell no.

Re: PRA Settle

collics — Mon, 06 Jan 2020 04:12:19 GMT

@Red1Blue wrote:
@Anonymous wrote:
Thank you! As I thought, but just wanted to double check!
Last week, I settled and paid off on 3 PRA accounts. Waiting for them to remove the collections from report. Hopefully in the next few days they should drop off from my reports.

I have 3 w/ them also. Curious to see how it affects your scores.