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"Settled In Full" Credit Status????????


Bambee
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Hello everyone. I'm in the process of settling a debt consolidation loan that is presently being reported as a charge-off on my Experian credit report (TU and EQ deleted this account back in 2004).

Well, I sent a modified settlement agreement from the Good Credit Is Sexy book to the bank stating that I would pay 50% of the alleged amount due provided that the bank indemnify me for my promissory notes and report the account "Closed - Paid As Agreed". The bank rep said that was fine but requested that I make payment in the branch, not at headquarters, and asked that I take a faxed copy of the settlement agreement in return. She also "said" that she would return the original settlement with her signature to me by mail after I make payment.

So I consulted with the experts on this site and they advised me to go ahead and take the settlement but to make sure the bank also deleted the negative history for this account. Accordingly, I sent a revised settlement agreement with 2 modifications stating that I would make payment at the branch and that the bank will delete the negative payment history for this account.

Instead, a bank supervisor sends a counteroffer stating that 1) I should make payment at headquarters and 2)the account will be reported "settled in full" without an I9 or unrated status.

Questions:

1. What does "Settled in Full" mean? Isn't this an oxymoron?

2. Will the "Settled in Full status hurt my credit score?

3.What is an I9 status?

4. Should I push for a more favorable credit status such as "Paid" or "Settled" with negative history deleted?

5. Should I do a PFD instead (or at least a pay for "Account Closed - Paid As Agreed"?)

6. And finally, what about my prom notes for this account? Should I continue to push for an indemnity?

Thanks in advance for your help!!!

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Divemedic is right... (as usual...)

Settled in Full tells any future creditor that you have paid an amount less the the full amount.- not too good but you did deal deal with the account and ended all future colleciton activity - it doesn't stink but it doesn't smell too good either...

However, agreeing to report this without the I9 status is very good. Unfortuantely it begs another question - How are they going to report this?

If they report it as a I-8 well -yippee- you not a complete deadbeat just an almost complete deadbeat.

IMO the "Supervisor" is angry that you've dragged this out and is backing away from his/her original agreement because he/she thinks you are stupid enough to agree to his/her little deception. Any offer made can be retracted until it is agreed upon by both parties.

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Bambee, I can't remember some of the original details of your situation with this note. (Maybe its Early onset of Alzheimers? )

Didn't they lose the original note?

and why are you trying to pay 50%? Is this a large dollar amount?

As I recall you have an "unusual" attorney - J*sus, in my little town (Washington DC) the attorney would get on the phone with the President of the bank and say -

"Hey Joe cut me some slack here I'll get her to pay just delete the darned account from her CR!"

-(Unfortunately that would mean paying in full for delete.)

Based on what your answers are , you may need to go up the chain of command claiming the supervisor backed away from a tacit agreement for non-business reasons.

Till next time...

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So "Settled In Full" is another way of saying "Settled For Less Than Agreed" . . . . . Not good.

And to answer your questions Radio Guy, this is a seperate matter than the other loan I wrote about on the "Is There a Lawyer In the House" board.

I've been back and forth with this bank (actually it's a well known finance company) for 2 years demanding the return of my prom notes once the account is paid in full. I've requested these documents from the Branch Manager, in-house attorneys, and now from these settlement people. Everyone is dodging the question about my prom notes and I'm not sure where or who has them!!! Instead, this finance company just tells me to pay or else my credit rating will suffer (or worse - legal action!) All I want is my notes back stamped "Paid In Full" or "Paid As Agreed". This is not an unreasonable request!

I've filed complaints with the NY State Banking Dept. the NY State Attorney General, as well as the Better Business Bureau and the Federal Reserve Bank. The NY State Banking Dept. conducted 3 investigations regarding my complaint but was only able to settle one dispute (the loan officer initially forged my signature on the security section of this loan to get my household goods as collateral for the loan . . . The security was later removed). In any event, the regulators have advised me to file a lawsuit against the bank to get my prom notes back.

I don't have the time or desire to fight this in court. I just want to pay, clean up my credit report, get my notes back, and move on with my life. This is a small loan ($2,600) so it's not even worth the court battle!

I think I'll take your advice Radio Guy and go up the chain to get the bank to adhear to their initial settlement agreement. I'm also thinking about going down the list of credit options stated in the Good Credit Is Sexy Book (i.e. Account Closed and "Paid"). I'll keep the PFD in my back pocket as a last resort.

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Do not accept I9, you want a R1 or I1 reporting. If they do not agree to that R0 or I0 is the next best thing as that is neutral.

here are the codes:

0 = Approved, not used

1 = Paid as agreed

2 = 30 days past due

3 = 60 days past due

4 = 90 days past due

5 = Pays or paid 120+ days past the due date; or collection account

6 = NULL

7 = Making regular payments under a wage earner or hardship plan

8 = repossession

9 = charged off to bad debt

O = open

R = Revolving

I = Installment

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