Credit Advice needed Quickly

[Cyeron]

I have a car loan that matures today but I still owe 2K because of past missed payments. Wells is willing to settle for 75%  but they said that a settlement would reflect on my credit report As Settled and Charge off..?? what?   If I continue to make payments ona  monthly basis my account will show lates 30 late 60 because there are no more due dates. I dont know what to do. Should I just pay the 2k and get rid of this thing. Any adive would really help. I really dont knwo what to do. My credit score has jumped 80 points in the last 6 months. I cant aford anything negative.

Thanks

Cyeron

[RobertEG]

First, I am having a problem with their statement that they will report a charge-off.

In order to do so, they must take a formal accounting action in their books, shifting the debt from a receivable asset over to an uncollectible, bad debt.

Your recent history does not, in my opinion, seem to support a finding on their part that the debt has reached such a stage (usually 120 days delinqueunt) to support a conclusion on their part that the debt is now properly considered "uncollectilbe."  I think they are blowing smoke on that one...

Regardless of any prior delinquencies having resulted in the account being previously delinquent, if you are currently meeting payment terms, even if a debt is remaining, then I dont see how they can properly report a settlement on a delinquent debt.  So again, I think they are blowing smoke.

If the account is currently in good standing, I would immediately pay the full debt balance, and then dispute any negative reporting they may make.

However, if you choose to hold out for a settlement that they dont accept, which then results in the account becoming delinquent, it would, in my opinion, open the door for negative reporting.

[Cyeron]

if you are currently meeting payment terms, even if a debt is remaining, then I dont see how they can properly report a settlement on a delinquent debt.

What do you mean by this?  From what they said. If the account passes 30 days they are going to report as such, because to them I owe the entire amount as of today. if I make a normal monthly payment today the account still shows the remaining balance due and it will show late.

[Cyeron]

They said they would accept a settlement of 1500. But, does this effect my credit score!!

[Shogun]

+1  I don't see how it would be a charge off if they are receiving payments.

[Cyeron]

Can it still be late? if the loan matured and I still owe? I am lost.

[jadeite788]

Sounds like they are blowing smoke, its either a settlement or charge off, never both on a credit report.  So I do agree with Robert, me personally if you have the 2K pay them off upfront, if not continue to make payments.  You have to make a payment and check your credit report and that will give you indication, trial and error I suppose.   

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@Cyeron wrote:

Can it still be late? if the loan matured and I still owe? I am lost.

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[Cyeron]

Thanks for all the responses. They are offering 1500 to settle. Shoudl I do it. Would that open the door to negative reporting?

[bahbahd]

You original post makes it sound like you have the 2K to pay off the loan "to be rid of it." I'm not sure what you are asking exactly but if you have the money now just pay the final amount. Why risk negative reporting over $500? I highly doubt Wells Fargo is going to leave everything w/ a status of 100% Paid as Agreed when you left a balance. 

[Cyeron]

I am just trying to save myself some money if i can and it wont hurt my credit.