If you are settling, then no, you won't owe them once you pay that $726.65. However, they will send a 1099-C to the IRS and you will be responsible for paying taxes on it more than likely next year. And paying it off or settling won't help your score much immediately, but in the long run the collection will stop updating monthly and begin to age and you'll gradually see a score increase. Who is the collection agency? If you can get the collection deleted altogether, then you'll see an immediate score increase.
Once settled, the balance will update to $0 within 3 months and your utilization and DTI will drop. The account will have the comment "settled for less" which doesn't matter most of the time, but if something goes to manual review, it could influence the decision.
Yea so I re-read it and I had the same CA collecting but on behalf of BoA. Credit Control is a CA, but as they said, they don't report, the OC is the one reporting, meaning they're the ones with the account still. In this case, you're looking at a charge off, not a collection. They just hired a CA to collect on the charged off account. So, that's good news in a way because
1) You don't have two negatives for the same account [charge off AND collection] and
2) You SHOULD see a score increase once it's updated to $0 balance because charged off accounts factor into utilization and are essentially over limit. Thus paying it off/settling should help your score a bit, depending on any other negatives on your report.
1) You don't have two negatives for the same account [charge off AND collection] and
2) You SHOULD see a score increase once it's updated to $0 balance because charged off accounts factor into utilization and are essentially over limit. Thus paying it off/settling should help your score a bit, depending on any other negatives on your report.