AMEX settlement

[Anonymous]

Hi, Amex balance was charged-off earlier this year. Their attorney just notified me of Amex's intent to sue. To avoid the lawsuit he indicated Amex authorized a 70% settlement offer (only pay 30%) with a "settled-in-full". Due to my specific hardship, they'll accept the settlement in two monthly payments. My concerns are that I'm unable to pay the settlement in two months (without robbing Peter to pay Paul), and negotiating a better account status. Before I discuss anything more with their attorney I hope to get some input on 1) Any chance Amex will accept settlement payments for 3-4 months? 2) Any chance of negotiating a better status than "settled-in-full" for a settled account? Thanks for your time.

[RobertEG]

I cant speak to the chances of getting a better offer, but it is my opinion that the one they have put on the table is a very good one.

They are stating that they will accept less than payment in full, and yet not report to the CRA the additional special comment from hell that it was "settled for less than the full amount."  That comment is very harmful when entered by the creditor, advising others that you have, in the past, not fulfilled your total debt obligations.  Some even state that FICO scores this special comment in a derogatory manner.

Under their offer,the account would be reported paid, and with $0 balance due, with no statement that payment was for less than the full amount.  It is not an offer without strong advantages.

[MarineVietVet]

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@RobertEG wrote:

I cant speak to the chances of getting a better offer, but it is my opinion that the one they have put on the table is a very good one.

They are stating that they will accept less than payment in full, and yet not report to the CRA the additional special comment from hell that it was "settled for less than the full amount."  That comment is very harmful when entered by the creditor, advising others that you have, in the past, not fulfilled your total debt obligations.  Some even state that FICO scores this special comment in a derogatory manner.

Under their offer,the account would be reported paid, and with $0 balance due, with no statement that payment was for less than the full amount.  It is not an offer without strong advantages.

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Any notation of "settled" is scored the same as a charge off. This is not just an opinion. This is a statement of fact from a highly placed authority at myFICO.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

Hi, thanks for your replies. Spoke to attorney's rep today, he said he might be able to divide payment over 3 months; I'm gonna push back for 4 months next time we talk. I also asked for account deletion, he said it isn't possible, and insists that "settled in full" is rated higher than a "charge off". I really have no idea of what wiggle room there is for further negotiation, he plans to file suit early next week, which I clearly want to avoid. I realize he is trying to get immediate payment and certainly has authority to negotiate within larger parameters than he will tell me. Aside from refusing the settlement, what other negotiation tactics are there for account deletion or paid as agreed?