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Settlement Reporting Help


stressedout2k5
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I posted this elsewhere but am going to delete it as I got one response (I know it must be me:). I am negotiating a settlement back with the OC's lawyer. Long story. The question is the reporting. The want to report it is "paid in full" and remove the "charge off notation." Is that good enough for reporting and does it help me or should I push for something else? I need to sign it and have it out today so I really need input. Thank you everyone for all your help in advance and Merry Christmas.

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Charge-offs do the most damage to your credit score. It is pretty much the worst thing the creditor can say. Try to negotiate to have the collection activity deleted from your credit report if at all possible. Even the "paid in full" stays on your credit report for 7 years. :)++

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Just so I am clear-

They are going to change the reporting to say "paid in full" and remove the "charge off" part so it will not be there anymore. Is that ok? Does it help me? Thank you

As long as it reports w/ a positive payment history, then you've accomplished something many of us haven't (me included)...when it comes to OCs. But yes..."paid in full" and no CO notation is what you should aim for when negotiating a settlement. Since it's working in your favor, I wouldn't press my luck. But do ask how your payment history will be reported. Sometimes, they will take away the CO mark but leave the late pays. IMO, I will deal w/ late pays over a CO any day. Who's the OC?

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Credit files are organized and kept as digital data. There are many "fields" in each entry which can cause a Tradeline to appear derogatory.

A "Paid in full" notation is, indeed, a positive. But unless all the fields indicate positive status, you may be barking up the wrong tree. Many consumers get agreements like this only to find the TL marked "settled" and retaining their R9 or I9 rating (derogatory). Such an entry on an updated TL might cause a deduction in your credit score. If that is the result, it would be in your best interests to have the TL removed completely.

On the other hand, if the creditor truely does remove all negative information and change the entry COMPLETELY to indicate Paid As Agreed, then it's best to preserve the history. As you can see, there is no way to know for sure, until it happens. This is why most consumers bow out of this confusion and simply request removal of the TL.

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Thank you everyone. That is where I am confused. The oc's lawyer sent me a settlement agreement drafted by the OC and it says upon receipt of payment they will "report to the Major credit bureaus that the account is paid in full and to delete the charge off notation." I am not sure if that helps me. I know removing a charge off is always good but do I push for more and risk the deal falling apart? Or does this help me as is? I just want to be done with this. Their 3rd counter was for more than I wanted to pay and if I am agreeing to it I want to make sure the reporting helps me. Txs everyone.

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SHould I chance the deal falling apart or offer an amendment to their agreement specifiyig not only paid in full and removing the charge off but to include all negative notions? Or should I just agree and sign theirs and send payment

"will report to the major credit bureaus that the account is paid in full and to delete the charge-off, (collection, profit-loss write-off and/or all other negative- this is what I added) notions."

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SHould I chance the deal falling apart or offer an amendment to their agreement specifiyig not only paid in full and removing the charge off but to include all negative notions? Or should I just agree and sign theirs and send payment

"will report to the major credit bureaus that the account is paid in full and to delete the charge-off, (collection, profit-loss write-off and/or all other negative- this is what I added) notions."

On the other hand, if the creditor truely does remove all negative information and change the entry COMPLETELY to indicate Paid As Agreed, then it's best to preserve the history. As you can see, there is no way to know for sure, until it happens. This is why most consumers bow out of this confusion and simply request removal of the TL.

I can pretty much guarantee you that someone along the way will not get it 100% correct, or to your total satisfaction. There will be no actual meeting of the minds. It is your intent for ... and the attorneys think you meant... The OCs clerk utilized incorrect codes, CRAs data entry clerk carelessly forgot to change the history. OOps!

Trying to preserve the account history may prove fatal. After you pay, you will have to Dispute any errors with the CRAs. Follow Ahntara's advice and and have the TL removed in its entirety and move on. Good Luck.

Happy Holidays xcanex xcanex xcanex

June

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Thank all of you. I agree with what all of you have said. Without getting into all the account specifics, I just wanted to finally resolve it to move on with my life. This went back and forthe and their last offer was more than my best offer. In total it was around 40% of the amount they alleged. Although it was more than I wanted to pay, I agreed to it as long as the reporting reflected positively. That was the problem as I wasnt sure if their document meant it would be reported positively if "paid in full withthe charge off notation delted" is positve or if it means they leave the other stuff or what.

After reading all the good advice from all and on the boards, what I did was amend their settlement agreement with a note attached. The note saidalthough their prooposed amount was higher than my best offer, I would agree to it and actually enclosed it. In exchange for me coming up to their amount, I needed clarifiaction on the reporting changes. I re-wrote their settlement agreement keeping it exactly as they wrote it but in the line that said "...and remove the charge off notation to also include collection, profit wirteoff or other negative comments."

I also wrote in my note that cashing my certified check consitituted them agreeing to it. I told them I re-wrote the agreement exactly as they had it but added those terms to the approporite line. I signed it and had it notarized exactly as they wanted. I let them know I thought that was what they meant but this way their was no misunderstanding and saves them having to re-write it.

My thinking was they have the money in front of them in the amount they wanted, a notarized settlement they drafted and they didnt have to re-do it. I think it was what they meant but anyways me coming up to their number which I guess is the important point even if they didnt mean it means they would consider it and move on. If they cash the check they agree to the amended agreement.

I may be worng but it is a chance I took as i had to have it their. If not, they already conceded they violated my rights. Even the documentation which I questioned with the signatures, they have a major problem as the forms they sent me werent used until 2005 and the loan in 2002 so they cant possibly explain that. I jus want this done so i can move on with my life and work on the last one credit issues form my divorce. Thanks again everyone. I will let you know what happens.

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