Thiniking of paying a $10,000 debt of to Ford Financial

[Anonymous]

Hello everyone,

i am in a tough situation, i have no idea what to do.

2 years ago i got into an accident with my ford explorer. a lady cut me off and i ended up jumping a curb and hitting a tree.

long story short i had insurance but not on the explorer for some stupid reason.

end up was that the person who hit me had insurance but only has the minimum requirements.

so here's where i am getting a little confused and unsure what to do.........  i have a charge off debt from Ford Financial in the amount $30,000, recently the insurance company sent me a check for $10,000 as it was the maximum allowed to pay out.  the collection company RMS has been really nice in helping me figure this out and accepted the $10,000 settlement offer.  i don't know if i should pay this debt off or not?

i asked them if i send the funds over, will they remove it from the report, they said that their company doesn't report to the credit bureaus only Ford does that.

they did send me a letter stating that once they receive the funds, " i would be released from further obligations"  that sounds like a release to me but not a deletion letter.

so im all confused... i don't know if spending this $10,000 will improve my credit score or not ?

i guess my questions to you guys are,

1, should i spend this $10,000 or no ? if yes, why? if not, why not ?

2, if i do, what type of score gains can i expect from this account being paid and closed

3, what other options do i have ?

i hope someone can give a little insight on this because i have this money and don't know what to do with it.

thanks,

Donny

[RobertEG]

Has Ford reported to the CRA.

If so, what derogs have they reported?  Only the charge-off?

[Anonymous]

the only thing that is reporting on my credit report is from ford for $30,000 and it is a charge off.

[ruafraidofme]

This is alot of money that ford will come after you for later in a judgement and the amount will be higher. Also with a judgement they can collect for pratically forever. Just an fyi...

[Anonymous]

i thought that a chargeoff meant that i still owe the debt but they arent going to persue for the funds because they wrote it as a loss on their taxes ????

correct me if im wrong.

[Anonymous]

A charge off is purely an accounting term.  If the debt is within the SOL they can sue you.  I'm willing to bet Ford isn't just going to eat $30k.  I would send them the $10k.

[gdale6]

I would advise that you take the settlement deal for 10K. It will update to a paid repo and the balance will have to be zeroed out.  As the TL ages its impact becomes less on your score. You can always start a campaign of goodwill letters asking that it be removed after a period of time has passed.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Sto...

[StartingOver10]

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@gdale6 wrote:

I would advise that you take the settlement deal for 10K. It will update to a paid repo and the balance will have to be zeroed out.  As the TL ages its impact becomes less on your score. You can always start a campaign of goodwill letters asking that it be removed after a period of time has passed.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Sto...

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Make sure you get something in writing that the $10k settles the account with no further payments due.  Otherwise, they can come after you for the balance.

[Anonymous]

thanks everone for their response's.  i paid the $10,000 yesterday and looking forward to having it show paid on my credit report.

i will keep you guys updated with the resuts.

thanks,

Donny