pamelabe Posted October 8, 2004 Report Share Posted October 8, 2004 If I settle with my credit card companies what is the best I should expect from them to enter in on my credit reports? ie, debt satisfied, paid in full, debt settled. Right now I have "Unpaid balance reported as a loss by credit grantor" under current status and "Charge off, Collection or Bankruptcy" under worst deliquency colomn. I want to know what to demand as a part of settlement to keep my believe it not reasonable score of 658 and improve it from there unless I have to file for bankruptcy because Im dealing with the credit card from Hell named MBNA! Link to comment Share on other sites More sharing options...
retmar Posted October 8, 2004 Report Share Posted October 8, 2004 In your offer of settlement, you will ask them to change the TL to read "pays or paid as agreed", "account closed by consumer", and delete all lates as that is your goal. What you can do is, if debt is over 2 yrs old, offer them about $.20 on the dollar. They will more than likely counter with about $.75 and all negative remains. You counter with $.30 and stand firm of deletions and changes. You will more than likely end up paying at least $.45 on the dollar and maybe receive all of your other requests. If the debt is less than 2yrs old, you will need to offer more. One thing to remember is the total amount they claim is due consists of all late and overlimit charges they can legally add before CO. If you wish to pay the whole amount, do not include the charges in your offer. Even though you are probably dealing with their internal collections do not hesitate to submit your offer, but, do it in writing only, no verbal by phone.Most important thing to remember is if this debt is less than 4 yrs old, they have all rights to sue you. Therefore, when you make your offer, word it as if you are starving and this is the best you can do. Do not mention BK at this time. You would save it for if they sue, or, if they counter with a threat, then you could mention that this action will leave you no other alternative but to file BK.Most often, the TL is reported as "settled for a lesser amount" or words to that effect, and all lates will remain. This is true on most debts settled for less than actual balance due. Plus, if the difference is more than $600, they will send you a 1099 for IRS. Link to comment Share on other sites More sharing options...
pamelabe Posted October 8, 2004 Author Report Share Posted October 8, 2004 I have been sued in one case (MBNA) so now I have a judgement and a frozen bank account on my hands. The other 2 accounts have one more year to file. I defaulted MBNA with 10,120 and now they are wanting 17+k in which I have since Tues hired a lawyer to settle with them (I really tried on my own and mentioned BK to them if I couldnt come to an arrangement). I own nothing but I am employed. My other defaulted cards were 5k ea. In addition I continue to pay my car loan and another visa as that is all my salary can handle. Now what do you think? Link to comment Share on other sites More sharing options...
retmar Posted October 8, 2004 Report Share Posted October 8, 2004 I was never involved in any Judgments, so will let the ones who know answer your question there. Sorry, I didn't realize one was a Judgment. I do know you can offer settlements, but, have no idea as to what they will counter with. One thing is to see if they would delete the Judgment from your CR.As to the others, submit your offers as I mentioned. Your main goal here is to avoid any further Judgments as they could result in Garnishments. As to hiring the Attorney to assist, that is a smart move. Allow this Attorney to handle all of them for you. Keep us informed. Link to comment Share on other sites More sharing options...
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