Reporting every two weeks

[movinonup79]

I just called Arrow and made an agreement to pay to settle out my old card with First Premier in two payments of $180.  How long does it typically take them to update that this is paid?  And how much will my score jump up?  Is this a good idea to settle the account and pay it in two payments?

Thanks! 

[GFer]

You would be better served if you offered a PFD. All they can do is say no.

And paying them 'may' help your score because you are bringing your utilization down. But oftentimes it hurts your score, because fico sees this baddie as more recent!

[Anonymous]

The consumer can dispute the debt (or portions of it) or ask who's the original creditor.

In my opinion avoiding the dispute doesn't help in any way - dispute or consumer request, both result in the CA having to update the record with the comment "in dispute", so for the CRA is the same thing.  Not disputing the debt (unless is recognized as valid) can bear detrimental results if you have to pursue further action against the collector.

section 809 of FDCPA states:

(b) If the consumer notifies the debt collector in writing within

the thirty-day period described in subsection (a) that the

debt, or any portion thereof, is disputed, or that the consumer

requests the name and address of the original 

creditor, the debt collector shall cease collection of the debt,

or any disputed portion thereof, until the debt collector

obtains verification of the debt or any copy of a judgment,

or the name and address of the original creditor, and a copy

of such verification or judgment, or name and address of

the original creditor, is mailed to the consumer by the debt

collector. Collection activities and communications that

do not otherwise violate this title may continue during

the 30-day period referred to in subsection (a) unless the

consumer has notified the debt collector in writing that the

debt, or any portion of the debt, is disputed or that the consumer

requests the name and address of the original creditor.

Any collection activities and communication during the

30-day period may not overshadow or be inconsistent with

the disclosure of the consumer’s right to dispute the debt or

request the name and address of the original creditor.

[Anonymous]

movingonup79,

whether it is a good idea or not depends on what you want to achieve.

This kind of agreement will not remove the negative reporting from your credit reports, it will only result in an update that states paid in full or settled for lesser amount (depending on your agreement), and it will sit on your credit report for 7 years. You score will not jump in any direction as result of this.

On the positive side, you will have the moral satisfaction to have satisfied your debt, and it would look better than an active collection in case of a manual review of your credit report.

Message Edited by demed on 10-14-2008 12:24 AM