Best way to pay

[Anonymous]

I am getting back into a better position to repair my credit.  I have $12,000 in a short sale of a house, left over from Benificial, no collateral.  Just showed up on my Credit report as a charge off, Oct. 2009 . I have a $7,000 charge off on Capital One CC, original 2006 date, that shows up as $12,200 charge off.  both credit collectors, not the original lender,  have offered in a letter  about 25% to settle the debt.

Question :  Can the credit collectors delete this from my credit report?  PFD ?  They say only the original company, Cap One, can remove negative info.  True or False? 

I can pay one ($3,000) off and another, maybe in March 2010, if it would help my credit score improve.  I am planning to buy a house in about a year.  current score 550.

[llecs]

---

Sweetpea1971 wrote:

I am getting back into a better position to repair my credit.  I have $12,000 in a short sale of a house, left over from Benificial, no collateral.  Just showed up on my Credit report as a charge off, Oct. 2009 . I have a $7,000 charge off on Capital One CC, original 2006 date, that shows up as $12,200 charge off.  both credit collectors, not the original lender,  have offered in a letter  about 25% to settle the debt.

Question :  Can the credit collectors delete this from my credit report?  PFD ?  They say only the original company, Cap One, can remove negative info.  True or False? 

I can pay one ($3,000) off and another, maybe in March 2010, if it would help my credit score improve.  I am planning to buy a house in about a year.  current score 550.

---

Welcome to the forums!

Who is reporting a balance? The CA or the OC?

Generally, the only one that can delete is the one reporting. If the OC is showing a $0 balance, then they likely don't own the debt, but rather the CA. If CapOne or Beneficial are reporting balances, then you'd PFD with them. If they are reporting $0 and the CA is reporting the balance, then you'd need to PFD with the CAs.

Be careful about repair. If you are inside SOL, then attempting to get them to delete via a settlement could result in a lawsuit instead. Make sure you have the $$$ to PIF before doing anything with any given debt. If the CA/OC is offering a settlement amount, like the 25% in your example, then you could always send a PFD for the 25% amount referencing their offer. If they say "No", be prepared to pay the offered amount. If not, they could revert back and demand the full 100%.

[Anonymous]

thank you for the response.  I have been working on this project and have this information. on my credit report :Benificial is reporting a $12,000 charged off bad debt.  A letter from HSBC says they bought the debt from benificial.   A seconded debt collector representing HSBC has offered $500 to" settlement in full on the above referenced claim".  They have HSBC 's name at the top, HSBC account number , my original account number with Benificial that is reported on my Credit report.

question:  if I pay this, can they issue a 1099 for the balance?  Can I request the credit reporting agencys  show "paid as agreed" "zero balance" or the credit report doesn't change because I didn't pay the original creditor?

Any thought or help.  I am attempting to pay off outstanding debt and improve my credit score over the next year.  I have until tomorrow to respond to the offer.

Thanks