PFD a Settled account?

Anonymous · ‎04-01-2008

Settled a Capital One account in 2006. Less than the full balance....Has anyone ever had luck offering to PFD the rest? Would they even consider it and can an OC do a PFD? Hmmm looking for help. It's my only baddie and I need help.

zep · ‎04-01-2008

I too, would like to know the answer (or opinion) to this question as I have the same situation.

My account was from Aug 2002. Settled in October 2007, and it now reads:

"Legally settled for less than the full amount"

Unfortunately they also listed the settlement payment as a late payment and it updated my collection.

I am disputing it as incorrect, as it also shows the account is still open when in prior reports it was closed. But lets see what happens.

Anonymous · ‎04-01-2008

I have read 2 schools of though on weather or not paying off an old debt will make a new time stamp for the bad credit.

From this link here talking about charge offs:
http://www.cardreport.com/credit-problems/charge-off.html

"As per the Fair Credit Reporting Act, a charge-off, whether paid or not, can remain on a consumer's credit reports for up to seven years. The time limit is based on the date of the original delinquency (i.e. when the debtor missed a payment and never again became current), not the date of the last activity. Thus, post-charge-off payments should not "re-start the clock." See our article on "Bad Credit Time Limits" for details."

I have also seen people on the forum state as you did, that paying off an old debt updated the date of last activity and may have done more harm that good. I guess it depends on the type of debt, and if it has been written off or not?

Here is a link to "Bad Credit Time Limits" from that same site:
http://www.cardreport.com/credit-problems/time.html

PS. There is also a decent thread here about "re-aging"
http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2175
The breakdown for that looks like: It is illegal once it has been considered a charge off or been sent to a CA (collection agency) to re-age the TL.

Message Edited by iwantapony on 04-01-2008 10:09 PM