Paid charge off reported incorrectly???

[Anonymous]

Hello all,

I have negotiated with NFCU to settle my charge offs. Today I got a notification from MyFICO that it was updated.

My score went up 50 points but it’s still being reported as having a balance. Is this allowed? Isn’t the whole point of settling so that they can’t report a balance?
They changed the amount of the balance to be deducted by the amount I paid to settle.

[OmarGB9]

Sometimes creditors do that as an initial update, but then the following month they update to zero. Wait another 30-45 days and it should update to zero.

[Anonymous]

That’s what I initially thought as well but I gave them a call. They advised me that this is how it’s going to keep reporting and they aren’t going to change it. I spoke to two people who said it should still report a balance as it was settled for less than full.

I assume that is wrong. Is it worth disputing or should I still wait for the next cycle update to see if it updates correctly?

[OmarGB9]

You spoke with two reps you mean? Yea they're not always the most knowledgeable. I'd say wait another month or so, and if it doesn't update to zero, then dispute it.

Did you get documentation from NFCU saying they will settle for less? If so, you could send that in as proof.

[Anonymous]

Hi I just recieved a charge off from NFCU, did you negotiate with them or the collection agency and was the process hard? Thanks in Advance. 

[Anonymous]

Yeah I meant I spoke with two reps in two different departments.

They confirmed that they were in fact settled but I haven’t received the letters yet.

[Anonymous]

Hey. So I’m not sure if it’s all the same or if it just used to be like that. But I had about 15k in total charge offs with them. They never sold the debt and kept attempting to collect on it internally.

Honestly they had been charged off for about a year when I finally gave them a call. Told them I wanted to settle, they then offered me like 35% settlement. I took it without negotiating . I guess I’ll update once they fix my credit report and let you know how it all worked out.

[Anonymous]

Mine is $25k lawd help me. They just did it. I will wait a while before contacting them then. Thank you for your assistance. 

---

@Anonymous wrote:
Hey. So I’m not sure if it’s all the same or if it just used to be like that. But I had about 15k in total charge offs with them. They never sold the debt and kept attempting to collect on it internally.

Honestly they had been charged off for about a year when I finally gave them a call. Told them I wanted to settle, they then offered me like 35% settlement. I took it without negotiating . I guess I’ll update once they fix my credit report and let you know how it all worked out.

---

[Anonymous]

I had an auto loan charge off with NFCU in Jan 2019 for 19k, I paid the full balance in December 2019, and a few days later applied for a Rewards card and got a 15k limit. Definitely a forgiving organization.

[gdale6]

---

@Anonymous wrote:
Hello all,

I have negotiated with NFCU to settle my charge offs. Today I got a notification from MyFICO that it was updated.

My score went up 50 points but it’s still being reported as having a balance. Is this allowed? Isn’t the whole point of settling so that they can’t report a balance?
They changed the amount of the balance to be deducted by the amount I paid to settle.

---

They will need to have it report 0, typically what is done with the first update is drop it by the amount you pay and in the next cycle it will drop to 0 and have notes added settled for less than full balance. If it goes past 90 days then that is the time to contact NFCU.

Adding: OP I have removed your cross post on this subject from the general credit forum, please refrain from posting multi threads on same subject in different forums, its not inline with our TOS and can lead to confusion by the members. Thanks for your understanding on this.