Paying off charge offs

[branton01]

I am sure I know the answer I have a charge off from Discover I contacted OC to payoff but was transferred to CA.  Before I speak with CA wondering how I should proceed....will it be worthwhile to ask for PFD or ask for a settlement? The CA is not on my report it still shows as CO with Discover.  

[RSX]

Call and ask for a PFD

if they say no, ask for a settlement. -try for 50% or lower if the CO is older than 2 years

if it is newer, you may need to pay more than 50%

either way, paid to zero is helpful and you can move on.  

[branton01]

Do you think there will be a positive impact to score?  

[RSX]

If you get a PFD and this is your only CO, there will be a definite improvement

if you get a paid to zero settlement, then the score improvement will happen month over month in smaller increments. (It may take about 2 months to post to zero)

'either way, it will lead to future score improvements and higher numbers.  

this is more about Removing a negative impact on your score, than an Improvement on your scoring file, if that makes sense

this CO is holding back or suppressing the score you could have.  So remove that negative and it will go up.  

[Anonymous]

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@RSX wrote:

If you get a PFD and this is your only CO, there will be a definite improvement

if you get a paid to zero settlement, then the score improvement will happen month over month in smaller increments. (It may take about 2 months to post to zero)

'either way, it will lead to future score improvements and higher numbers.  

this is more about Removing a negative impact on your score, than an Improvement on your scoring file, if that makes sense

this CO is holding back or suppressing the score you could have.  So remove that negative and it will go up.  

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I`ll mail a settlement proposal letter for about 40% of the balance. 

[branton01]

I think I'll start there first 

[gdale6]

If the CA is not on your report and you have to deal with them a PFD is not necessary what you do is pay in lieu of the CA reporting their TL (make this deal). Discover is not going to give anyone a PFD, never have.

[branton01]

Was able to get a settlement for 40% paid it today to not continue to drag this out and start the recovery.

[OmarGB9]

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@branton01 wrote:

Was able to get a settlement for 40% paid it today to not continue to drag this out and start the recovery.

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Congrats!

[Anonymous]

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@branton01 wrote:

Was able to get a settlement for 40% paid it today to not continue to drag this out and start the recovery.

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That's great. Did they send you something in writing? If not, request a letter stating the account has been settled in full, for less than the total amount. Many horror stories of debts being transferred after settling and the remaining balance sent to another CA.