So I'm getting ready to start rebuilding my credit. I have a couple of charge off accounts that I want to tackle first. However, Santander is still applying interest to the account that was charged off almost 2 years ago. The initial LOC was for $8500 but now that total has ballooned to a whopping $12,878. I want to send them a letter to set up a payment plan or even a pay-for-delete. I want to know if anyone had any advice on where to start. Any success with a paid-for-delete after a charge off? I don't want to settle this debt, I want to pay the amount owed without all that interest. How would one start a letter to try to come to some type of agreement, thank you.
Taking of a charge-off does not stop the continued accrual of interest that is authorized under the account agreement.
It is thus likely legitimate part of the debt now owed.
If you offer only the principal amount of the debt at time it became delinquent or was charged-off, you are offering a settlement for less, and the creditor can report paid/settled for less.
You can offer whatever amount you wish, but will also need their additional agreement to only report paid, and not make any reference to the fact that it was settled for less.
Welcome to the board
If you are going to make payment arrangements just know that interest is going to keep on accruing so the payment will have to be in excess of the monthly interest charge in order to get you on a trajectory of paying it off. An OC is loathe to do a PFD but Im sure they are updating it monthly and this is keeping your Fico depressed so you want to settle it ASAP to get it to stop that updating. You would also want to work out arrangements with the OC before they end up sending it to a collector then that TL ends up on your CR as well.