Settled charge off still show a balance?

[Anonymous]

Just got off the phone with Merrick Bank who is willing to settle the account and consider the matter closed, however they are telling me the balance will still remain. Is this really the case with a settled account? The whole point of me setting is for it to show a $0 balance owed. It is killing my utilization. Is this something some companies do? I see a lot say when they settle, it shows a $0 balance.

My question to them was what is the point? It falls off in two years. It's also way past SOL in my state. 

[RobertEG]

If it is clear that whatever they accept, be it a dollar or the full amount of the debt, satisfies the debt, then they are required under FCRA 623(a)(2) to promplty update their reporting to show $0 balance.

I would go forward with the settlement, making sure that it is clear that the settlement is in full satisfaction of the debt.

If they then refuse to update the account balance to $0, you would have a slam dunk complaint with the CFPB or your own legal action for violation of section 623(a)(2).

[Anonymous]

Thank you so very much! 

[Anonymous]

Be carefull on this. I recently settled an account (nissan) including a letter stating the debt would be fully satisfied with a paid for less than full. The creditor reported the remaining balance. After hours on the phone and reference to the legally binding letter, they agreed (manager) to honor the letter with  $0 balance but it dropped my score due to new activity. I tried to settle with BofA but they stated they wouldn't $0 the balance....I had to push them on an answer and they dodged the question. Their settlement letter was also very vague not addressing if the account was "fully satisfied". I would tell them to send a settlement letter first so your attorney can review and make sure the account will be fully satisfied.