Is Wells Fargo CC Charge Off Settlement 60% good?

Anonymous · ‎05-26-2020

In 2015 I opened a secure credit card with Wells Fargo for $600. In 2016 I fell on hard times and used that card to survive. I was never aware that the card was matured to a regular card from a secure card. January 2018 the card was charged off. Wells Fargo has not sold or assigned this to a debt collection agency. I called to try to resolve this yesterday and the lady on the phone said Wells wouldnt accept less than 60%. What should I do?

thornback · ‎05-26-2020

@Anonymous wrote:
In 2015 I opened a secure credit card with Wells Fargo for $600. In 2016 I fell on hard times and used that card to survive. I was never aware that the card was matured to a regular card from a secure card. January 2018 the card was charged off. Wells Fargo has not sold or assigned this to a debt collection agency. I called to try to resolve this yesterday and the lady on the phone said Wells wouldnt accept less than 60%. What should I do?

Well, the charge of still somewhat recent -- $360 is probably the best offer you'll get for a while -- especially coming from the original creditor. If you can afford it, pay it and be done. If you leave the debt unpaid, they could pursue legal action, or assign collection authority to a collection agency, resulting in an additional collection tradeline added to your reports.

When the card was unsecured you should have received your deposit back -- that would've been your indication that the account was no longer secured. Was your initial security deposit never returned?

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Anonymous · ‎06-01-2020

It had to have been returned but I never noticed. So 60 % isnt high ?

Anonymous · ‎06-01-2020

@Anonymous wrote:
It had to have been returned but I never noticed. So 60 % isnt high ?

Not really for such a "low" owed balance. Best I have gotten on sub-$1k balances is 0%-50% off the whole balance owed. Even at 5-6 years past CO date...

Anonymous · ‎06-01-2020

Anything less than the owed balance is a "good" amount, especially on a newer account still with the OC. There are a lot of OC's that will not offer any settlement. I would take there settlement and resolve this debt. Just make sure to get something in writing that states the settlement amount and that the account will be considered paid/settled in full and closed.

FireMedic1 · ‎06-01-2020

Its worth it so a collection isnt added to your report and drop it even further than it is now. Like the old show. The Price is Right!