Resolving the last Major issue on my credit - please assist

[snowwake8]

So I have come a long way.  My low was 490 and now I am up at 585 and worked hard to negotiate and pay collections.  About a year and a half ago I got an Orchard bank card and have made all payments on time.  5 Months ago I was able to get a cap one card.  Both have only $300 limits and most recently I got a Macy's Card with a $400 limit.  Things are looking good.  All payments made on time.  Here is the one major blemish I need to fix and need advice on.

In 2006 I got a car loan and it was totalled 2 months after buying the car.  Insurance paid off what the car's worth was leaving about $800 left over.  In my stubborness I did not pay the remainder therefore bringing the account to collections.  Now there have been 22 reported 90+ late marks on my credit.  It is showing as an auto loan charge off/reposession even though it was never reposessed.  I think this is killing me!

I called them today to start negotiations.  After penalties, fees, and interest they say I owe $1,280.74.  The original amount wa s$768.  I tried to negotiate having them remove the collection from my account completely if i pay them but they said no.  I then requested  that if I pay today to remove the 22 90+ day late marks and they said no.  They did however offer a settlement of $600 flat to show that the account has been "paid off".  But will this help my credit?  Shor term and long term?  I'm looking to bump my credit up to where I believe it should be which is mid to high 600's.  All my credit cards I have now are paid on time.  I keep low balances and evenly distribute balances.  What options do I have to rid myself of this one thing left on my report.

Any advice would be greatly appreciated.  They are e-mailing me the "in writing" letter saying they will show as paid off if I pay the $600 and will update all 3 credit reports within 30-60 days.

Thanks!

[esme]

Once an account has been charged-off, paying it off might look better in the eyes of some lenders, but as far as improving your score it's not likely to help. You can lessen the negative impact by paying the amount in full as opposed to settling for less than the amount owed. If you settle for less, it will be notated as such in your credit report and from what I've read, settling for less doesn't look much better than filing for bankruptcy. I don't think it's fair, but that's just the way the credit world works, unfortunately.

I made this mistake when settling an old HSBC credit card that charged-off. The amount I saved ($378) by settling wasn't worth having it reported as settled for less. If I knew then that it would hurt more, I would have tried to come up with the full amount. But you have to do what is best for your own situation regardless. If you can't afford to pay the full amount, settle. I just wouldn't get my hopes up for a score increase.

There is the option of sending letters to them requesting PFD. Just because one person says no, doesn't mean another one will. Good luck.

[snowwake8]

Ok an Update.  Took the advice that just cause one person won't another can't help.  I called back an asked to speak to a manager right away.  I then explained the situation to the manager and she said when they were Triad Financial they would PFD but not Santander.  So I then explained to her what happened and that I technically was never late and that the 22 90+ late marks on my credit were really hurting and asked if they could at least remove those.  She said she would open a ticket and sned it to the "presidents office" for approval.  So...my fingers are crossed.  If they showed it paid off and deleted thsoe 22 late marks that would help I am sure.

[esme]

Good luck!!! At least the person you spoke to this time was willing to escalate it for futher investigation! That's a positive outcome in and of itself. Now it's time for the nail-biting wait.....