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Hey all,
Lurker of a few years and greatly benefited from the shared knowledge of this community. Hoping that I may be able to find some help for my specific scenario.
Like many, I fell on hard times over the last few years and fell behind on some of my debt payments. In this particular case, I fell behind on an undergraduate private student loan with US Bank (~$7,000), which they then charged off. They still hold the debt, but Alltrans Financial Group is now collecting on it. Alltrans has offered a settlement of 25%, which I'm immensely grateful for, but will not do PFD, or any positive ammendments to the loan record (as per their alleged agreement with US Bank). They will however update to, "paid as settled."
Alltrans is not currently reporting anything to the credit burueaus, and US Bank has not reported anything monthly since they charged off the account a year ago, with the description on my credit report noting: "paid in full/was a charge off." I've never seen any noting that had both paid in full and a charge off and am not sure how to best navigate this, considering it is not reporting monthly.
My goal is to settle for their offered amount while getting a PFD from US Bank. I've reached out to US Bank about this matter before and they said that since they have assigned the debt to a collection agency, they cannot interfere with the matter. If that isn't possible, are there any tips/ways to get a charge off notation removed from a closed account?
I used this pandemic period to go back to school and am now applying for roles that require higher credit scores, as well as preparing to purchase a home in the near future. Any and all advice would be greatly appreciated!
Once the loan is settled, a final update will show $0 and settled for less. US Bank will not remove a CO status. It will report CO for 7 years from DOFD.
With an offer of 25%, I'd take that offer. That's generous quite honestly.