Question about settling charge off

[Anonymous]

I am new to this so any input is very much appreciated.
I have just begun my credit repair process. I have been paying off old accounts I mismanaged several years ago. Kohls was one of these. Qualia credit service was the collection agency and they offer me a 50% settlement which I paid. Today I saw kohls updated my credit report to show the other half is still delinquent but I was told it would be considered paid in full. Is this how it should be reflected on my report or should it show settled for less than the full amount with a balance of $0??? Thanks in advance for any insights

[Aduke1122]

Did you get any kind of settlement agreement from them bf you paid it ?

[Anonymous]

Yes a letter and a screenshot from where I paid the collection agency

[RobertEG]

It is common after payment of a settlement for the creditor to first report the amount paid as a reduction in the balance, followed shortly therafter by zeroing out the balance based on the settlement agreement.  It occurs due to sequential processing, first of the payment, and then final resolution in another department of the agreed settlement.

I would wait one more reporting cycle for the smoke to clear before filing any dispute.

[Anonymous]

I paid several chargeoffs back in 2015.  A couple of them were settlements.  All of them show 0 balance now.  But the ones I got settlements on say 0 but have a notation "settlement accepted on this account for less than the full balance.  paid in full"

I would think yours should report that way as well.  If you paid a collection company that Kohls sold the account too and that is who you paid, then the Kohls account should show 0 anyway and a notation " chargeoff, account sold to collection company"

or at least something along those lines anyway.

[Anonymous]

Ok I'll give it a month and see if it changes! Thanks for the advice guys!

[Anonymous]

I wish id known this was normal a month ago. Just went thru this with usaa and disputed immediately, then they marked it as settled. Last, the dispute ended up causing tu to rereport the remaining balance. It's tough working this process on 30 day cycles and forcing yourself to wait.

[RobertEG]

There are a couple of factors that explain from the creditor's perspective.

First, they may wish to ensure that the payment clears deposit before taking the additional steps of processing the account.

If a check does not clear, for example, they dont want to undo all their subsequent processing.

Second, financial practices normally dictate immediate deposit of any funds in order to begin any interest accrual.

Government agencies, for example, have statutory requirements to deposit any funds within x number of days for those reasons.