H&R block income tax loan went bad

[JustinTime]

In January 2007 I filed my taxes with H&R block and applied for a instant loan and was approved.This loan was from HSBC bank.After a months I received a phone call that the IRS had kept my return thus defaulting the loan.HSBC demanded payment in full.It was like 3500.00 dollars.I asked for a payment plan but was turned down .Well they turned it over to collections to a company called Tate & Kirlin.These are the biggest jerks ever.They demanded full payment now!I just wanted a payment plan.Any way I couldnt afford this at that time .Just last month I decided to call and try to settle again .They agreed to a payment plan of 200 a month.Since then I've found this site and would like to do a PFD.Can I still do this.God ,I don't want the phone calls to start again.

[Intuitive1913]

Usually with the PFD, you are agreeing to pay the account in full for them to delete immediately. Not sure if it works the same with payment arrangements. Send them a letter to see if you can have that included in the agreement for the payment arrangement that once this debt is satisfied in full they will agree to delete this from your CR.

[upinflagstaff]

With these types of loans, the bank will usually collect from future income tax refunds and will take their cut before you get anything from refunds.