Question about duplicate TLs

[hikenc]

Good afternoon everyone!

I had a Verizon Wireless account that was opened in 2007 and CO'd in 2011.  At the time of the CO, I "settled for less than the full balance."  I recently contacted VZW and offered to pay the remaining balance and in return they deleted the "settled" indicator on my credit reports and changed it to "Paid in Full."  They would not do a PFD.  It's still showing as a collection account.

I was wondering what would happen if I opened another account with Verizon?  Would they report on the same TL and remove the collection, or would they open a new TL?

Thanks for your help!

[Anonymous]

Not sure.  It was actually not legal of them to take more money once settled.  Settled is paid.

[hikenc]

Do I have any leverage since they illegally accepted money after the account was settled?

[Anonymous]

Probably not unless you can prove it.

[money_talks]

guiness: Why is it illegal to collect on the remaining balance?

Based on what the OP stated, OP initiated offer to creditor and said "If I give you this money that I did not pay you back then for the remaining balance, would you change the comment in the TL to PIF?" Or are you saying that this somehow a form of bribery?

I would understand if the creditor attempted to collect on the remaining balance after it was settled (without the OP requesting anything), but that does not seem to be the case here.

I ask this because I recently did a settled for less than full on an account. What if I decide in the future that I want the TL to report PIF? Am I stuck with "settled for less than full" until the baddie falls off?

[Anonymous]

When you settle a debt it is considered paid.  Period.  And the TL should reflect settled or paid in full for lesser amount, something like that.

What if you settle something and you get a 1099-C that you file taxes on?  This would definitely make it illegal to collect the balance.

Maybe illegal is a little harsh.  But it is not good business practice.