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Should I Accept the Settlement Offer??


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I need some advice ASAP. (I posted this on the collections forum as well.)

I have a charged-off credit card account with Providian (opened 10-1998) for the amount of $1220.00. They have reported the account as charged off on my CRA every month from 07-1999 until 06-2003. They report “N/A” in Recent Balance/Recent Payment column of the report.

My CRA also shows that a CA (Acceptance) has been reporting the charged-off account as a collection account beginning in 07-2003 and again on 06-2004. The collection balance reported is 900.00. I recently received a settlement offer from Acceptance. The letter states that they will settle the account for 450.00 as long as if I pay within 15 days. They also will provide “a paid account letter and close the account.”

I want to resolve this situation for the better of my credit report. I live in Georgia where the SOL is 5 years for a open-ended account. The seven-year reporting standard for the original account will be meet in 11-2005. Which of the following do you recommend?

1). Pay the CA the settlement amount and accept their credit listing offer, or

2). Refuse settlement with the CA and attempt to settle with the original creditor, or

3). Wait out the 7-year CRA reporting standard then dispute the listing if it continues to appear on my CR?

Thank you for your help :?:

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You need to check the SOL for GA. Its possible these debts are uncollectable. And....if you do a search using the menu item above on "sol ftc fcra" (all items) you'll find discussions about whether or not a CA can continue to report SOL TLs.

You may be able to just write these guys a letter telling the the debt is uncollectable and they're violating the FCRA by reporting so get off your credit reports...

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