Milestone delayed settlement

[BEN52]

Hello,

I am attempting to help my wife rebuild her credit. She had a well past due and over limit Milestone account. They offered a settlement of $350 to settle the account which had a balance of just under $700. I accepted and paid the $350. This was 18 days ago. They applied the payment immediately which is reflected however the settlement has not.

The account is now showing past due with a missed payment. When I called they said they have to wait until the next billing cycle to apply a settlement. Does this sound correct?

[GZG]

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@BEN52 wrote:

Hello,

I am attempting to help my wife rebuild her credit. She had a well past due and over limit Milestone account. They offered a settlement of $350 to settle the account which had a balance of just under $700. I accepted and paid the $350. This was 18 days ago. They applied the payment immediately which is reflected however the settlement has not.

The account is now showing past due with a missed payment. When I called they said they have to wait until the next billing cycle to apply a settlement. Does this sound correct?

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assuming all of the terms of the settlement were met, yes, it's typical for the first update to change just the balance and a second update (about a cycle later) to resolve the balance/update with settlement terms etc. 

[OmarGB9]

Yes it sounds correct. Most CAs take two billing cycles to fully close out your file.

[BEN52]

So will she get hit with more negative marks in the meantime?

[OmarGB9]

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@BEN52 wrote:

So will she get hit with more negative marks in the meantime?

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It shouldn't, no. Just a residual hit from a balance still remaining after the first update, but that's it.