CO settlement / payment arrangment

[Red1Blue]

Right now COs are reporting every month and holding the scores on my reports. If we make a settlement / payment arrangment on the COs will they stop reporting every month and stop hold the scores ? Or will they continue reporting the late/CO every month ? What is the effect of making the settlement / pay off agreement on CO accounts?

[Anonymous]

As you pay it down, the amount owed will be reported as being brought down, but it will continue to be CO until it is completely paid off and then it will reflect paid charge off or paid charge off, settled for less.

[gdale6]

Once it shows 0 balance per CRA rules monthly updating is to cease.

[Anonymous]

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@Red1Blue wrote:

Right now COs are reporting every month and holding the scores on my reports. If we make a settlement / payment arrangment on the COs will they stop reporting every month and stop hold the scores ? Or will they continue reporting the late/CO every month ? What is the effect of making the settlement / pay off agreement on CO accounts?

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I have a few accounts like this.

They still report "CO" every month, but the "last payment date" and "last payment amount" are current and correct.

The thing is, I am glad they do not change it to green check marks or "ok", as in positive reporting history, because that would negate the DoFD.

As mentioned above, once you finish the payment plan/arrangement, it will update to $0 and then stop reporting monthly.

Good luck!

[Anonymous]

If I call and set up a payment arrangement, does that restart the clock if you are out of the SOL? I do not want to open myself up to legal trouble because all of mine are out of SOL (3 yrs in my state) but still updating for about 3 years. I am in that terrible grey area!

And if I want to set up a payment arrangement, should I call on the phone or send a letter? If I call, should I stick with a script (ie, do not admit it is mine, ask to set up payment arrangement)?

Any help would be awesome. 

[Anonymous]

It depends on the state, but most states, reaffirming the debt or making a payment does restart the SOL. Sorry.