So for the past several months I've been working hard at improving my credit and I've had some success thanks to this forum. I had 4 major collections which I paid in full and got a few pfd. Now to this last lingering charge off. It's a $500 charge off from an old credit union I no longer bank with. I'd save the least amount for last. I contacted the bank prepared to request a PFD. With my debit card in hand ready to make payment the representative proceeds to say how this payment would "settle the account in full". I asked her shouldnt it be a PIF (they wouldn't budge on a PFD). She said "With interest and late payments billed after the account was charged off the account is now 1800 past due and we are offering $500 as a settlement for the principle balance." Welp this completely threw me off as I never wanted to have a "settled" account on my reports and have done PIF for all the other collections prior even when they didn't give me a PFD. I was confused, rushed, and not prepared and therefore I made a stupid decision. I paid this account as a settlement for the $500. Now I'm sitting here with mixed feelingA. Happy that I now have paid off old debt but kinda upset how this last one was collected. Wondering your thoughts out there on this. This collection although charged off in 2011 was still reporting every few months as past due so at least it won't report any longer that way? Right? Should I call back to ask to pay the 1300 in interest and fees for a PIF status when I have the remaining amount? Really bummed right now. Any advice would be helpful!
Starting Score: EX 651 EQ 597 TU 699
It settled as soon as you made the payment, paying more is not going to change the outcome. The OC should now report this as a Settled for less than full balance with a 0 balance due and this month as settled date. The CA should update to Paid, Settled for less than full balance. Both should show this month as status date and the monthly updating should cease, over time your score will recover. I would start GW 6 months from now. Good luck 
Thanks Queen Britt. I was going to start GW while gardening so hopefully I see some success with that!
Thanka GDale. It actually never went to collections so I paid this to the OC. Will that make a difference when it comes to GW? You can GW an OC right? You just can't Dv an OC if memory serves me correctly?
I also would not pay them any more, what's done is done. GW them and pat yourself on the back for the hard work you've done to clean it up.
@Wiley1sl wrote:Thanka GDale. It actually never went to collections so I paid this to the OC. Will that make a difference when it comes to GW? You can GW an OC right? You just can't Dv an OC if memory serves me correctly?
No, you just wont have to write one to a CA. Yes you can GW the OC. You are right a DV is only for a CA/JDB. If you have a problem with the way an OC account is reporting a Section 623 dispute is what one would sent to the OC.
Thanks KRoberts for the encouragement.
Thanks GDale! I have yet to familiarize myself with the GW laws to reference so this is a great help!
UPDATE: So today I see my Equifax report score increased by 19pts after this account reported with a 0 balance. And the noted it as "Paid Collection". Says nothing about settlement. Yippee! I'm not even sure if I want it deleted now...I've seen some weird things happen to my score even when bad items are deleted. But I guess i'd rather have a clean report than high score. So GW attempts will follow.
Happy now. :-)