PIF or settle

[andersk08]

I have 3 charged off accounts with Comenity totaling $2000. The will settle for less then owed at 60% or accept payment in full split up over 12 months. I assume the pif over 12 months will affect my score on the most positive way. Thoughts?

[Anonymous]

I would settle. Doing PIF will not help score. Damage is done 

[Anonymous]

Pay for Delete!!  Negotiate the delete before you pay.  Pay all up front.  This will give you more bargaining power to negotiate for the delete!

[Anonymous]

delete delete delete!!

[Anonymous]

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@Anonymous wrote:

I would settle. Doing PIF will not help score. Damage is done 

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Unless you can negotiate for a PFD, this is the best advice if you want to avoid being sued down the line.  To be honest, I'm not sure if you will get sued for these small balances anyway.  BTW, if you do decide to settle, make sure that it is reported as settled in full with zero balance.  Don't want those paid or settled for less comment in your report.  Just a reminder, Penfed, using Fico 9, treats settled in full collection accounts same as a paid in full accounts, at least that is what I read in the fico scoring section. 

[RobertEG]

When the debt owner agrees to settle for less the full amount of the debt, they have the right to additionally report to the CRA that it was a settlelment for less.  This provides others with a statement that you have a history of not paying the full debt that you have obligated.

While the debt may be discharged, it is always an unfavorable comment in any manual review to have a settled for less comment of record.

If you settle for less, I would make sure you have clear agreement that the debt is legally discharged in full.

I would additionally make an attempt at their agreement not to report settled for less to any CRA, and simply update the current status to paid, and current balance to $0.  Absent any addtional special comment stating the debt was settled for less, the credit report will then appear in a manual review the same as if you had paid in full.