Pay in full vs settlement.

[RobertEG]

If you cant get their agreement to a PFD, the next best thing in my opinion is to offer a settlement for less with the contingency that they not report the infamous paid for less special comment. 

A settlement for less satisfies the debt the same as a PIF.  If they agree not to report that additional special comment, the account will then look the same to those pulling your CR as if paid in full.  It shows paid, $0 balance.

[Anonymous]

Any suggestions on how to handle it if they won't PFD?

[guiness56]

Send them a letter asking to settle the debt.

[Anonymous]

Sounds good!! Thanks y'all!

[doc101]

settlements will show up on credit report as "account paid in full" but can remain on your reports......at least that is what happend to me

[Oyiwaa]

If you plan applying for mortgage within the next couple of years, paid (whether in full/settled) is better.

If the CA/OC will not do a PFD or remove that special comment indicating that the account was"settled for less", it is better to PIF and then send out GWs.

You can also try installment payment - by money order - to pay the debt in full, for example splitting it into 2 or 3 equall payments.  Make sure to get this in writing though, and stick to it.

All the best of luck  - - Oyiwaa

[RobertEG]

Most settlements will not show on your CR as paid in full.  The creditor always has the option to report the additional special comment of paid/settled for less than the full amount of the debt.

Additionally, if the excused debt is more than $600, they are required to report the cancelled amount of the debt to the IRS via a form 1099c, notifying the IRS of the consumer's tax obligation on the cancelled debt.  The IRS considers cancelled debt as income to the consumer.

[Anonymous]

These are little charge offs for 500$ a piece and they want to settle for about 100$ less on each so I will most likely just pay in full on both and send GW and hope for the best.