What should I do if....

[lizandjerry]

OK, I'm going to get up my guts and call one of the original creditors to try and compromise a settlement. I dont think they'll have a problem with this because I havent paid them in 6 months and they have not been able to contact me. According to my credit report (and since I have yet to receive any info in the mail) this is not at collections yet. I think its in "their" "internal collections". IF it is in their "internal collections" I can still talk to them as if they are the original creditor right? Next question: I am going to try my best to negotiate my credit rating and demand that they note my credit reports "Paid in Full" but I have been reading on the boards that a lot of original creditors are failing to give in to this request. If this happens, what is the next best approach? Should I ask them to keep it "unrated"? If that doesnt work, how long should I wait to ask them to list it as "just paid?" If I tell the rep "I demand that you report my rating as "Paid in Full" and she says no, then wouldnt I sound too eager if I said "Okay, then make it unrated." If she says no again, then what? Should I immediately say "Ok, list it as paid" and then I'd have to keep going from there until I finally get to the point where I would have to accept a "paid charge-off" or something on that ground. After the rep refuses the first proposal of "paid in full" should I just thank her and hang up-then call back later? I'm just trying to cover all of my grounds. If I bargain with this too much on a single phone call, they'll probably think that I am an easy target and take advantage of the situation. Any advice would be helpful. Thanks

[sisflomi]

First you might want to call and find out if you can do a reaging of this account. They will know if you can or not. If you can, you have to stick to it, you can't miss a payment at all. It would drop your payment a bit, and might lower the interest. It also should remove all late fees. Each creditor is different with this. If that gets you know where, then you should make settelment offers in writting only. Its the only proof you will have of what they agree to.

[md]

Extremely unlikely that they would accept a "Paid in Full" as that would be completely inaccurate. Something more neutral but as positive is "Paid As Agreed" or you could settle for "Paid". As for rating, I think that is done by the CRAs, not the OCs. Sometimes the info. from the OC does not meet the criteria of the OC to be rated.

You could always ask for deletion of the tradeline. However, if this tradeline is what establishes the fact that you have credit then it could hurt you score-wise more than it could help. If you have other positive tradelines that give you a good credit history, then it is probably okay to ask for deletion. Deletion is something they can legally do with respect to the FCRA. Some OCs may agree to report "Paid in Full", but I have never heard of it and it is technically illegal for them to do so. They would probably point this out to you.

It may or may not be in internal collections. Have they been pulling your CR? The CA may not be listed yet as well. Who is the OC and what is the status of your other accounts? If they see that you are current on all of your other accounts then they will be more reluctant to settle. However, if they see that you are having real problems meeting your financial obligations then it is in their interest to settle.

Make sure you read a lot more here before doing anything and decide if settling really is your best option. It was my best option, but it depends on so many factors. Hardship programs are sometimes available. Do you have lots of other debt and accounts that are late? Good luck!

[admin]

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