BEST BUY/CBNA CO still reporting monthly as failed to pay

[Anonymous]

New here so apologies in advance if I don't give enough info.

I opened a Best Buy credit account back in 2014.  It was ultimately charged off after several missed payments in early 2017 and a couple of months later I got a single letter from a firm in NY offering a settlement.  I don't remember the name of the firm and am at the same address since opening the account so I'm shocked that no one has continued to contact me or even start litigation.  That firm and no other collection agency has ever reported this debt on my CRs, only the original BEST BUY/CBNA.  Having only received contact from this firm once, they went out of sight, out of mind while I cleaned up several other bad accounts over the past couple of years. 

Best Buy Citi card opened in May 2014.

CL $3000

$5069 Charged off Jan 2017 (interest added from failing to pay off balance in promotional period)

Balance and payment status still updating monthly to all 3.

TU and EQ just show CO/Closed, not showing as a derog on either report's summary page.

EX shows as my only derog.

I do want to refinance my mortgage and car payment without this hanging over my head in its current state so I want to clear this last derog up, but am wanting to proceed with caution.  I've seen posts here and other forums stating that CITI isn't the most forgiving, but will do settlements.  Given the age of this account and it still being owned and reported by CITI AFAIK, any suggestions on the best course of action to engage in clearing this debt up?  I am in a position to settle, not full balance in 1 payment, but can work on payments or perhaps a single payment that's heavily discounted.

Call them?  Write them?  Dispute via CBs and wait for a response?

Thanks in advance.

[FireMedic1]

Dont dispute accurate info. Just call and work out a settlement plan. With that high of a balance and the CL. Your getting nailed for the util reporting on the card and the CO status. Settled CO's wont raise the score much but the util to 0 will help. Be proactive and end it really soon. As they say. Paid is better than owed. Good Luck!

[Anonymous]

Thank you.

So I went ahead and called the Best Buy credit customer service number.  I was routed to Citibank Central Recovery after entering my verification info.  The rep authenticated me and asked how can she help and I asked to settle the account.  She then transfered me to a payment center, didn't get the exact name of the department.

I was once again authenticated by the next rep and he asked me to define the settlement terms.  I offered up $2000 over 6 payments.  He accepted and said they would start updating my credit report to all 3 with each timely payment and upon completion of the 6th payment the account will be reported as Paid in Full.  They are sending me the agreement terms in a letter so I'll see if it differs from what I heard on the phone, but seems like a reasonable conclusion with the original creditor for less than 40% of the balance.

It will include a 1099-C.

[FireMedic1]

There ya go. Dont miss a payment and then wash your hands of this baddie once and for all. Congrats!

[gdale6]

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@Anonymous wrote:

Thank you.

So I went ahead and called the Best Buy credit customer service number.  I was routed to Citibank Central Recovery after entering my verification info.  The rep authenticated me and asked how can she help and I asked to settle the account.  She then transfered me to a payment center, didn't get the exact name of the department.

I was once again authenticated by the next rep and he asked me to define the settlement terms.  I offered up $2000 over 6 payments.  He accepted and said they would start updating my credit report to all 3 with each timely payment and upon completion of the 6th payment the account will be reported as Paid in Full.  They are sending me the agreement terms in a letter so I'll see if it differs from what I heard on the phone, but seems like a reasonable conclusion with the original creditor for less than 40% of the balance.

It will include a 1099-C.

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Well done. Forms 1099-C debt cancelation doesnt always mean you will owe taxes on it, there is an exception as far as what is considered solvent in the year the form is issued so be sure to check this out before you just add it to gross income and pay the income taxes on it.