PNC Bank - Settlement Offer: Accept or Reject/Counter?

[Oyiwaa]

Hello,

Holiday Greetings to everyone.  I have posted here before about my struggles with a charged-off PNC Bank CC account. Account was charged-off in 2010 with a balance of about $300.  PNC Bank is still reporting, hence no CA involved at this point. 

-- I have disputed more than 3x and it came back verified (though - a few things things such as Date Opened got corrected, hence the "Date Reported" keep changing). 

-- I sent a PFD to many executives and they ignored it

-- Lastly, I sent a 623 about a month ago, and PNC Bank just sent me a huge parcel concerning the complete account history including my original, hand-filled and signed application.  Obviously, they have their ducks in order. 

Since I want to apply for mortgage sometime next year, I decided I should pay the account.  I called them and they are willing to settle the account for 100.00  and in return, they will report the account as: "Settled or Paid for Less than Full Balance"

I believe this is as damaging as the original TL.  What should be my counter offer - given that they are not willing to PFD?

Thanks - Oyiwaa

[dmorey]

I'm not a pro or anything but it sounds like if a delete is not possible, you should probably pay the settlement they offered then try a goodwill letter. Even if they still won't take it off, having it paid would be better if not required for a mortgage though it won't help your score.

You might be able to get them to agree to take $100 and call it "settled in full" instead of settled for less through negotiations though.

[RobertEG]

If they accept payment, regardless of the amount, as satisfaction of the debt, the account will be updated to paid, $0 balance.

The reporting of paid/settled for less is a separate special comment code that they can report.  They can choose not to report that special comment, which will then make your CR appear the same as if the debt were paid in full.  Reporting of that special comment is always negative, as it informs others viewing your CR that, in the past, you did not fully pay all debt accrued.

They are most likely using their ability to report that special comment as some continued incentive to get you to pay the full amount.

You can PIF, thus avoiding the issue, or counter with payment in exchange for not adding a reference to paid for less.

Additionally, keeping in mind that they have the option to refer to a debt collector, stringing things out could result in more damage.

Personally, I would consider simply doing a PIF.

[Oyiwaa]

Thanks very much, RobertEG and Co.

I agree with your thoughts.

So, I want to counter offer with PIF and demand a more favorable rating - such as just "Paid"  (without all the other derogatory associations such as "Charge-Off" - which should be deleted from the account).

I can send them this offer  or would a lawyer (now available through my employer's legal aid program) get more leverage with this?

Thanks - Oy

[RobertEG]

If you do a paid in full, the issue of any additional special comment of paid for less becomes moot. It's unconditional payment, and ends the matter.

However, if you additionally include the limitation that prior reporting be deleted, you have a conditional offer that they can ignore or reject

You take your chances by including conditions.  They can choose to resort to other means to continue their unconditional collection of the entire debt.

In asking for deletion of prior reporting, you are asking for their good-will, even though you are paying.  Deletion of prior reporting based on payment is contrary to their credit reporting agreement with the CRAs, and is thus entirely supportable.

Asking for deletion via an attorney implies potential for legal action on your part, for which I see no basis, and is not apt to foster a feeling of good-will.

I would advise against that route.

[Oyiwaa]

Thanks again, RobertEG for your sage advice.

I agree - involving a lawyer might sound litigious ..... so I will reserve that for the two Midland TLs on my file ....

Certainly - asking them to delete the "charge-off" notation might be a hard sell. I guess, the best I can hope for is a "Paid" notation.   How do you suggest I phrase the counter-offer?

Thanks - Oy

[jhc7399]

What about if you offered to pay the full 300 for a more favorable or no comment at all besides paid as agreed?

[Oyiwaa]

Sure ... I intend to counter with PIF .... with the notation -  "Paid as Agreed"

Thanks -- Oy