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CO settlement / payment arrangment

Rebuild2022
Super Contributor

CO settlement / payment arrangment

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?

Gardening since 08/2020
Message 1 of 6
5 REPLIES 5
Birdman7
Super Contributor

Re: CO settlement / payment arrangment

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.
-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 2 of 6
gdale6
Moderator

Re: CO settlement / payment arrangment

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

Message 3 of 6
LaHossBoss
Senior Contributor

Re: CO settlement / payment arrangment


@Rebuild2022 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?


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!




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 4•21 | EQ [F8 651] [F9 651] [EQ5 684] [VS3 630] | TU [F8 717] [F9 692] [TU4 723] [VS3 639] | EX [F8 718] [F9 673] [EX2 681] [VS3 675]
Goal Score: 670 [X] TU [X] EX


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SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
SO Current Score: 4•21 | EQ [F8 661] [F9 622] [EQ5 677] [VS3 646] | TU [F8 705] [F9 673] [TU4 639] [VS3 627] [VS4 666] | EX [F8 719] [F9 708] [EX2 679] [VS3 665]
Goal Score: 670 [X] TU [X] EX


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Message 4 of 6
Dcgirl1990
New Contributor

Re: CO settlement / payment arrangment

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. 

Message 5 of 6
Birdman7
Super Contributor

Re: CO settlement / payment arrangment

It depends on the state, but most states, reaffirming the debt or making a payment does restart the SOL. Sorry.
-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 6 of 6
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